March 3, 2024

LSG revenues spur optimism

The LSG Group saw revenues increase in the first half of 2022 as the recovery ramps up. Revenue was just 8% behind that of 2021, reaching 77% of its pre-pandemic levels. Business was particularly positive in North and South America.

The increase amounted to EUR 410 million, compared EUR 447 million in 2021.

The company signed new contracts, renewed existing ones and entered into innovative partnerships. For LSG Sky Chefs these included contracts with Delta Air Lines (23 US locations, two hubs, five international locations), Air France/KLM (seven Latin American locations), Condor (11 new US locations) as well as Vietnam Airlines in Los Angeles/USA, Saudi Arabian Airlines in Bangkok/Thailand and Incheon/Korea. Thai Air Asia X in Thailand, Greater Bay Airlines in Hong Kong, UPS Cargo-Catering in Anchorage/USA and Turkish Airlines in Seattle and Dulles/USA.

Retail inMotion, the LSG Group’s onboard retail experts, also signed contracts with Spirit Airlines (a five-year extension), Eurowings Discover (several new US locations, last mile through LSG Sky Chefs), easyJet (onboard retail technology, last mile through dnata) and Greater Bay Airlines in Hong Kong (onboard retail management).

Wilken Bormann, CFO of LSG Group, said: “Our industry continues to move through challenging economic times. The current pandemic is compounded by supply chain disruptions, flight cancellations due to capacity constraints and high fuel and inflation costs in much of the world. The LSG Group is nevertheless recording stable growth figures and is successfully maintaining its strategic realignment and strict cost management.”

He thanked employees worldwide for their commitment to the recovery and said the revenue growth was reflected in the number of employees at 30 June 2022, which was up 22%, to 18,659.

A strategic realignment has seen LSG Group forge new partnerships with NotCo, Kaelis and Cuisine Solutions with the aim of expanding the offering in the areas of food technology, sustainable food and equipment solutions. It also launched a tailor-made innovation programme, next, intended to drive a continuous, rapid innovation mission summed up as: “We connect food and people. Everywhere.”

Retail inMotion also launched its sustainability strategy, Prism, which brings all IT solutions and divisions together to drive an overarching sustainability strategy for the company.

In non-aviation sectors, retailer and home delivery services grew and the company’s network of ghost kitchens expanded in four new locations (Sao Paulo/Brazil, Denver and Chicago/USA, Helsinki/Finland).

Adjusted EBIT decreased to EUR 13 million in the first half of 2022 (previous year: EUR 19 million) due to the elimination of grants under the US Cares Act. Excluding the grants, adjusted EBIT would have exceeded the previous year’s figure.