SHANNON-BASED duty free operator Aer Rianta International (ARI) continues to fly high, judging by accounts filed recently with the Companies Office. These show ARI's pretax profit soared to €291 million in the 12 months to the end of 2007 from €17.5 million in the previous year.
This included a €267 million exceptional profit on the sale last year of its 24 per cent stake in Birmingham Airport. According to the accounts, no capital gains tax liability arose on this sale as it qualified for an exemption under tax legislation. Even if this is stripped out, ARI made a profit on "ordinary activities" of €24.5 million, up from €17.5 million in 2006. That's a frothy gain of about 40 per cent.
ARI paid €230 million in dividends last year to its parent group, the Dublin Airport Authority (DAA). This left the duty free retailer with total shareholder funds of €120.5 million at its year end, almost double the level of 2006. The company also repaid a €98 million loan to the DAA last year.
Sales from ARI's duty free shops in Russia, the Middle East, Europe and north America rose by 58 per cent to €69 million. The accounts illustrate ARI's exposure to the Commonwealth of Independent States (CIS), otherwise known as Russia and its former territories.
CIS accounted for €64.8 million, or about 94 per cent of ARI's turnover. ARI's management will no doubt be hoping that recent east-west tensions over Russia's conflict with Georgia do not impact on the sale of alcohol at its airport shops in Moscow, St Petersburg and Ukraine's capital Kiev.
The Middle East was ARI's next biggest revenue contributor, generating sales of €2.4 million. Europe accounted for €1.6 million of sales and north America just €214,000.
ARI's wage bill declined during the year even though its headcount rose by four to 86. Wages and salaries cost the company €6.1 million last year, down from €6.4 million in 2006. This had the effect of lowering the average salary paid from just more than €78,000 to just under €71,000 - a shining example to other semi-State companies in these challenging times. ARI does not publicise its results, although the DAA does list the profit contribution from its duty free subsidiary in its annual report each year.
It's not clear why ARI and DAA are so shy about publicising such tasty results.
We would have thought these stellar figures would merit popping a few corks of duty free bubbly by DAA chairman Gary McGann.
