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Kuoni reports sharp rise in profits

Swiss-based Kuoni Group reported a 27% rise in profit before interest and taxes to CHF74 million (£51 million) for 2011 from a turnover of CHF5.1 billion (£3.5 billion) that rose 28% year on year.

Kuoni’s underlying profit was higher at CHF 169 million (£116 million) before the cost of acquiring and integrating destination management services provider Gullivers Travel Associates (GTA) last May.

The group reported growth in “organic turnover” of 1.2% and a net profit of CHF33 million (£23 million), but said the strength of the Swiss franc against other major currencies had a negative impact on the results.

Chief executive Peter Rothwell reported all divisions made a positive contribution and Kuoni had “significantly strengthened its position as a global travel services provider in two areas with great growth potential: Asia and destination management activities”.

He said: “Kuoni today is a larger and better positioned company than it was a year ago.

“The acquisition of GTA, which does a large proportion of its business in the growth markets of Asia, puts Kuoni in a better strategic position. We have managed to improve our financial results and achieved organic growth.”

Rothwell added: “Kuoni continues to pursue its ‘asset-light’ strategy minimising ownership of aircraft or hotels.” The Kuoni boss recently ruled out a bid for any part of Thomas Cook.

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