gategroup Holding AG

EANS-Adhoc: gategroup Reports Solid 2011 First Half Results

  ad-hoc disclosure transmitted by euro adhoc with the aim of a Europe-wide
  distribution. The issuer is solely responsible for the content of this
6-month report


Stable revenue and EBITDA despite difficult global environment -- Net income,
operating profit improve - Business performs in line with expectations --
Full-year targets confirmed

    ZURICH, Aug. 11, 2011  --

    - gategroup reported solid first half 2011 results in the face
      of continuing global economic uncertainty

    - Revenue of CHF 1,318.7 million, up 0.1% reported, up 14.0%
      in constant currencies

    - EBITDA of CHF 88.4 million, down 4.7% reported, up 9.7% in
      constant currencies

    - EBITDA margin of 6.7%, down 0.3 percentage point reported,
      down 0.2 percentage point in constant currencies

    - Operating profit of CHF 49.1 million, up 24.3% reported, up
      44.6% in constant currencies

    - Profit for the period of CHF 20.1 million, up 116.1%

    - Balance sheet strengthened by capital increase in 2010
      second half; net debt reduced by CHF 271.1 million to CHF 157.1 
      million compared to June 2010, a decrease of 63.3%

    - Successful mitigation of raw material cost increases;
      recovery from Japan crisis; continued recovery of assets from 
      isolated fraud event

    - Andrew Gibson named Chief Executive Officer

end of ad-hoc-announcement

gategroup, the leading independent global provider of onboard products, services
and solutions, reported gains in profitability measures for the first six months
of 2011 on stable revenue despite global economic challenges.

gategroup has seen year-over-year growth for the airline industry, its largest
customer base, despite concerns that emerged earlier in the year. These included
a sharp spike in oil prices; the triple earthquake/tsunami/nuclear disasters in
Japan; smaller natural disasters in Australia and New Zealand; civil uprisings
in the Middle East and flight disruptions due to volcanic activity in Europe and
South America.

"gategroup continues to deliver to expectations despite these challenging, but
transient, conditions," said Chief Executive Officer Andrew Gibson, who was
named to the position on July 28 after serving in an interim capacity since
April. "Historically our business is stronger in the second half, and we are
optimistic the effects we have seen in the first half will be further mitigated
as the year unfolds."

The CHF 20.1 million reported profit for the period was up 116.1% over last
year's CHF 9.3 million. The earnings came on revenue of CHF 1,318.7 million,
which was up slightly on a reported basis. However, adjusting for foreign
exchange differences against the Swiss Franc, gategroup's reporting currency,
revenue was CHF 1,501.8 million, a strong increase of 14.0%.

Operating profit, meanwhile, was CHF 49.1 million, a 44.6% gain when adjusted
for currency fluctuations. Earnings before interest, taxes, depreciation and
amortization (EBITDA) were CHF 88.4 million, up 9.7% in constant currencies,
resulting in an EBITDA margin of 6.7% on a reported basis and 6.8% in constant
currencies. The change in margin is less than a percentage point lower on both a
reported and constant currency basis compared to 2010's margin of 7.0%.

Chief Financial Officer Thomas Bucher said operating profit was positively
impacted in 2011 by a reduction in share-based payments compared to 2010.
EBITDA, meanwhile, was negatively affected by several factors, he added. These
included the disruptions in Japan and higher raw material costs.

The acquisitions in Canada and India are important additions to gategroup's
geographic portfolio. Their integration is progressing and they continue to be
within the Group's target margins within 24 months.

gategroup's commercial approach of building strong long-term relationships as a
strategic partner; a focus on key customers; and cross selling the comprehensive
products and services of the company's 11 brands continues to bear fruit.

This is evidenced by a first half retention rate for existing business of 87%,
which includes agreements with Iberia, Scandinavian Airlines (SAS), Jetstar
domestic and United Airlines in Sydney. The success rate of winning new business
was 33%. This included adding Delta Air Lines as the fourth customer of the new
Gate Gourmet unit at Tokyo Haneda and a system-wide agreement to manage Brazil
low-cost carrier GOL's onboard retail program.

In February, gategroup self disclosed a fraud event involving a Danish
subsidiary that amounted to approximately DKK 138 million, or approximately CHF
27 million based on historical exchange rates applicable at the time the fraud
occurred (approximately CHF 22 million at year-end 2010 exchange rates). An
investigation by independent external forensic accounting experts concluded that
the fraud was an isolated case. The event resulted in a restatement of financial
results for prior periods. In the meantime, efforts to recover assets continues.

As a reflection of gategroup's solid economic performance in the beginning of
2011, Standard & Poor's upgraded its rating to BB- and stable outlook.

"gategroup continues to demonstrate its ability to manage a difficult
environment with its resilient business model," Gibson said. "Looking ahead to
the second half of the year, we remain cautiously optimistic."

Barring any unforeseen events, gategroup targets full-year revenue in 2011 of
approximately CHF 3.0 billion on a 2010 constant currency basis. Actual reported
results will be dependent on, amongst other things, the development of the
foreign exchange environment. "Given these first half results combined with the
expected market developments in the second half of the year, our target remains
unchanged for an EBITDA margin of 8.0-8.5%, with our expectation for the margin
remaining at the lower end of that range," Gibson said.

For more detailed information, please see gategroup's Half Year Report 2011,
which can be found on line at the following link:

About gategroup:

gategroup is the leading independent global provider of onboard products,
services and solutions to companies that serve people on the move. gategroup
comprises 11 member brands, which are deSter, eGate Solutions, Elan, Gate
Aviation, Gate Gourmet, Gate Safe, Harmony, Performa, potmstudios, Pourshins and

The Group's world-class capabilities are focused in catering and hospitality;
provisioning and logistics; and onboard solutions. Our customers include top
airlines and railroads around the world that rely on our expertise and solutions
tailored to their guests, service offerings and geographic regions.

Shares of Zurich-based gategroup are traded on the SIX Swiss Exchange under the
symbol GATE. Please visit

    Financial overview
    period ended June 30, 2011
    in CHF m except per share data

                                                Period ended     Period ended
                                               June 30, 2011    June 30, 2010
    Income Statement
    Revenue                                          1,318.7          1,317.2
    EBITDA                                              88.4             92.8
    EBITDA margin in %                                   6.7%             7.0%
    Operating profit                                    49.1             39.5
    Operating profit margin in %                         3.7%             3.0%
    Profit before tax                                   28.6             13.5
    Profit for the period                               20.1              9.3
    Basic earnings per share in CHF                     0.68             0.47
    Diluted earnings per share in CHF                   0.68             0.44

                                               June 30, 2011    June 30, 2010
    Balance Sheet
    Current assets                                     864.4            644.2
    Non-current assets                                 834.1            847.8
    Total assets                                     1,698.5          1,492.0
    Current liabilities                                546.8            538.1
    Non-current liabilities                            712.3            807.8
    Total liabilities                                1,259.1          1,345.9
    Total Equity                                       439.4            146.1
    Short-term debt                                     27.6             18.7
    Long-term debt                                     528.6            612.6
    Cash and cash equivalents                          399.1            203.1
    Net debt                                           157.1            428.2

                                                Period ended     Period ended
                                               June 30, 2011    June 30, 2010
    Cash Flow
    Profit before tax                                   28.6             13.5
    Cash generated from operations                       4.0             39.2
    Interest, net                                      (11.0)           (14.4)
    Income taxes paid, net                             (11.3)            (7.7)
    Net cash flow (used in) / from operating
    activities                                         (18.3)            17.1
    Capital expenditure                                (23.9)           (26.3)
    Other                                                4.1             (3.3)
    Cash flow (used in)investing activities            (19.8)           (29.6)
    Cash flow (used in) financing activities           (13.7)           (32.7)
    Decrease in cash and cash equivalents              (51.8)           (45.2)


This publication may contain specific forward-looking statements, e.g.,
statements including terms like "believe", "assume", "expect" or similar
expressions. Such forward-looking statements are subject to known and unknown
risks, uncertainties and other factors which may result in a substantial
divergence between the actual results, financial situation, development or
performance of the company and those explicitly or implicitly presumed in these
statements. Against the background of these uncertainties readers should not
rely on forward-looking statements. The company assumes no responsibility to
update or revise any of these forward-looking statements or to adapt them
whether to reflect new information, future events, developments or circumstances
or otherwise.


gategroup CEO Andrew Gibson and CFO Thomas Bucher invite media representatives
to participate in a telephone conference call regarding First Half 2011 Results.

The call will be held at 09:00-09:45 CET on Thursday, Aug. 11, 2011.

To participate, please call the dial-in number approximately 15 minutes before
the start time. Once dialed in, please follow the instructions given over the

Direct dial-in numbers:

+41 (0) 91 610 56 00 (Europe)
+44 (0) 203 059 58 62 (UK)
+1 866 291 4166 (USA - Toll-Free)
+49 (0) 69 2 22 22 05 93 (Germany)


gategroup CEO Andrew Gibson and CFO Thomas Bucher invite analysts and investors
to participate in a telephone conference call regarding First Half 2011 Results.

The presentation can be accessed via webcast and dial-in teleconference at 13:30
CET on Thursday, Aug. 11, 2011.

To listen to the live presentation via teleconference, call the dial-in number
approximately 15 minutes before the start time. Once dialed in, please follow
the instructions given over the phone.

Direct dial-in numbers:

+41 (0)91 610 56 00 (Europe)
+44 (0) 203 059 58 62 (UK)
+1 866 291 41 66 (USA - Toll-Free)
+49 (0)69 2 22 22 05 93 (Germany)

Please note that this Q&A session is for analysts and investors only.

Further inquiry note:
For media: John Bronson, Corporate Communications,, +41
43 812 2048 or Carol Reed, Corporate Communications,, +41 43
812 9128; For investors/analysts: Dagmara Wawrzonowska, Investor Relations,, +41 43 812 5496

end of announcement                               euro adhoc 

issuer:      gategroup Holding AG
             Balz-Zimmermannstrasse 7
             CH-8302 Kloten
phone:       +41 43 812 54 96
FAX:         +41 43 812 91 19
sector:      Consumer Goods
ISIN:        CH0100185955
stockmarkets: Hauptsegment: SIX Swiss Exchange 
language:   English

Weitere Meldungen: gategroup Holding AG

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