Kuoni Reports Increased Turnover, Profit in the First Half

The Kuoni Group’s first half turnover totaled CHF 2 228 million, increasing by 9.9 percent to the prior-year period. Organic growth stood at 9.5 percent; moreover, acquisitions (+6.1 percent) also contributed to the increase, while currency fluctuations (-5.7 percent), particularly in the UK, exerted a negative impact.

Earnings before interest and taxes (EBIT) improved markedly from CHF 5.7 million in the prior-year period to CHF 13.9 million. Net income increased to 21.3 million Swiss francs ($19.4 million) from 3.5 million francs a year earlier.

According to the company, the main contributors to achieved results were the Scandinavian and Asian business units, along with Destination Management. The positive turnaround was also confirmed in Switzerland.

Kuoni stated that the travel market continues to be very difficult in the UK. Demand in this market has weakened at the same time.

Specifically, in the UK, the SBU United Kingdom reported a decrease in turnover to CHF 333 million for the first six months, compared to CHF 360 million in the comparable prior-year period; this due to a marked decline in the British pound.

Despite negative currency effects (-14.8 percent), specialized tour brands in particular showed an above-average gain in sales. In local currency terms, turnover increased by 7.3 percent. EBIT decreased to CHF 17.4 million (first half of 2007: CHF 22.9 million).