2019 was a successful year for onboard products and services provider, LSG Group, during which it achieved several contract renewals (including Delta Air Lines, United Airlines and AirBaltic), the opening of new locations, and the forming of strategic partnerships – all measures which have helped the company to lay a solid foundation for coping with difficult periods of time, such as the current coronavirus crisis.
LSG Group closed the 2019 financial year with consolidated revenues of 3.4 billion Euros (US$3.65 billion). Adjusted for currency effects, the result was up 2.3% over the previous year. The Group achieved an adjusted EBIT (earnings before interest and taxes) of 128 million Euros (US$137 million), an increase of 11% over 2018.
You can view a video rundown of the figures HERE.
“Our annual result, with record sales and earnings growth, is definitely something to be proud of,” said Dr Kristin Neumann, chief financial officer and labor director of LSG Group. “The year was not an easy one for our organisation, which had to manage the ongoing sales activities related to our European business, including some expert brands, and compensate for the loss of two major clients the prior year. This has given us the strength for what is coming ahead with the coronavirus, which will surely keep us on our toes and present us with an even greater challenge. We are in a severe crisis, but we are well prepared for it.”
Erdmann Rauer, CEO of LSG Group added, “We are aware that we have to be innovative and flexible in a rapidly changing industry. We have to respond precisely to market trends, position ourselves in the premium environment and use innovative technology.”
To this end, the company has taken over the management of Japan Airlines’ lounges in Frankfurt. Newly opened customer service centres (CSCs) in Nairobi (Kenya), Phoenix (USA) and Novosibirsk (Russia) helped to further strengthen the network of delivery capabilities for customers worldwide.
“When it comes to partnerships and digitalisation, we are one step ahead,” said Rauer, in reference to a new cooperation with Barilla, the world’s largest producer of pasta, and the additional business successes of Retail inMotion. The on-board retail expert brand took over the on-board sales of Cathay Pacific Group in 2019. “Of course, we have not come to the end of our development process by any means,” added Rauer. “We want to offer customers and consumers ever new products and applications. They are demanding tailor-made concepts, which we already offer today and will expand in the future.”
In 2020, LSG Group’s board say that they “expect to clearly feel” the impact of the global spread of the novel coronavirus SARS-CoV-2. Massive entry restrictions and travel warnings, the halting of business travel by many companies and event cancellations have brought air traffic to a partial standstill that is also affecting the catering business.
“It is not yet possible to predict how strongly these events will be reflected in the company’s future business results”, said a company statement.