LSG Sky Chefs Continues to Expand its Portfolio
Neu-Isenburg – In 2011, LSG Sky Chefs was able to expand its portfolio with products and services that reached beyond its core airline catering business. Consolidated group revenues rose by 2.2 percent to 2,299 million Euros, adjusted for exchange rate by approximately 5 percent. The company’s operating profit amounted to 85 million Euros, which is an increase of 9 million Euros over the previous year’s figure. This improvement was mainly due to the differentiation in the portfolio offered to airlines, entering markets adjacent to the core business and rigid project and cost management initiatives.
“We started 2011 with a lot of optimism but it was dampened after just a few months in light of the political turmoil, natural disasters and economic uncertainties that the year eventually brought us,” said CEO Walter Gehl. “Nevertheless, we were able to fully meet our expectations in terms of revenue and operating results, which is clear evidence of our company’s flexibility and strength.”
Within the framework of the continuing consolidation within the catering industry, LSG Sky Chefs merged its activities in Switzerland with First Catering Produktion AG. In addition, a joint venture with Alpha in the UK, for which an application was submitted in February 2011, was approved by the British antitrust authorities just recently. Moreover, the company extended its network by establishing new catering facilities in Chicago, USA and Luanda, Angola. And more and more airline customers are opting for the enhanced innovative and environmental-friendly equipment solutions and logistics services the company offers.
The targeted entry into adjacent markets, ones in which the core competencies of the company can apply, took place according to plan. In early December, LSG Sky Chefs started catering a train connecting Paris and Venice. School catering in Hong Kong grew considerably and new projects in this area were launched in Sweden, India and Germany. In the fall, the company acquired Norris Food Services, a retailer based in the Northeast Coast of the United States, in order to strengthen its activities in the retail market.
For 2012, LSG Sky Chefs expects more consolidation in the industry. Accordingly, the company predicts moderate growth in its core airline catering business. Consequently, the diversification of the product portfolio for airline customers as well as for the adjacent markets will be actively pursued.
“The year 2012 is crucial for the development and restructuring of our company,” added Walter Gehl. “We will continue to work diligently on standardizing and optimizing our processes in operations and administration to further improve the performance of our company in a sustainable manner. In parallel, we will focus on developing new market opportunities via collaboration with partners to build a solid foundation for the future in addition to our organic growth. In the meantime, we will stay on our present course so that we can continue to grow LSG Sky Chefs.”