Travel industry giant Kuoni Group reported consistent turnover and net profits of CHF 67.4 million ($67 million) in 2014, according to its latest financial results released Tuesday.
The company generated turnover of CHF 5,508 million in the 2014 financial year (2013: CHF 5,669 million). Organic growth came to -0.1%. The segments FIT and VFS Global recorded positive organic growth of 8.8% and 13.9% respectively. The net effect of acquisitions/divestments came to -1.0% owing to the exit from loss-making European tour operating activities in 2013.
The company’s net result came close to the previous year’s at CHF 67.4 million (2013: CHF 69.2 million, 2013 adjusted: CHF 36.7 million) and includes almost CHF 2 million of costs already incurred for the announced sale of tour operating activities. The costs of CHF 47.6 million in 2013 relating to the withdrawal from loss-making European tour operating activities mainly affected the financial result in 2013.
Cash flow from operating activities came to CHF 64.0 million (2013: CHF 160.4 million). Free cash flow stood at CHF 33.2 million (2013: CHF 124.6 million). The company attributed this decline mainly to lower operating earnings (EBIT), as well as swings in Net Working Capital.
Kuoni Group’s equity at 31 December 2014 came to CHF 779 million (31.12.2013: CHF 779 million). The equity ratio was practically unchanged at 32.2% (31.12.2013: 32.6%).
At the end of 2014, Kuoni Group had a total of 11,934 employees (2013: 11,478). While headcount was reduced in most units, it rose in the two growth areas FIT and VFS Global.
“The implementation of the new strategic direction announced in 2015 is going according to plan,” commented Peter Meier, CEO of Kuoni Group.
“Kuoni Group is now concentrating on its core business as a service provider to the global travel industry and governments, as well as on strategic initiatives designed to accelerate growth and increase profitability. Kuoni Group has therefore decided to sell its tour operating activities. Despite the challenging business environment, turnover in financial year 2014 was stable compared to prior year in organic terms. Two of our core activities – Global Travel Distribution (GTD), formerly FIT, and VFS Global – posted positive organic growth, especially in Asian source markets. Net result was similar to 2013.”