Home » News » Record results for Flight Centre

Record results for Flight Centre

Record results for Flight Centre
Tuesday, 23 August 2011

A spate of natural disasters, an unsettled economic climate and a strong Aussie dollar did little to impede Flight Centre this morning posting its best sales and profit before tax (PBT) performance ever.

The company was close to spot on with profit expectations made earlier this year, its underlying PBT at AUD245.2 million, a 19.6 percent growth on the previous financial year.

After AUD4.2 million spent in donations and AUD27.9 million in goodwill impairment for its US operations, Flight Centre are sitting comfortably on an actual PBT of AUD213.1 million - which equates to an 7.4 percent growth year on year.

According to Flight Centre managing director Graham Turner, the company’s strong results in both its home and international operations are a sign of future growth, the company expecting a 2011/12 PBT between AUD265million and AUD275million, excluding abnormal items that may arise.

“Challenges will arise - as they do every year - and economic conditions remain uncertain, but we will be disappointed if we do not achieve our profit target,” Mr Turner said of the future.

“We start the new year with good momentum, a strong balance sheet and sales force, a diverse stable of brands and with strategies in place to drive future growth."

Australia was the largest profit generator thanks to strong demand in international travel (which offset a downturn in domestic travel).

“Elsewhere in the world, the UK was again our largest profit generator after Australia, South Africa’s results improved and New Zealand performed solidly, given the tragic events that unfolded in Christchurch,” Mr Turner said.

“Record EBIT results were generated in Australia, Canada, India and Dubai and we achieved inaugural EBIT profits in Greater China, Singapore and the USA.
“While we expect better future results in the USA, the $1.5million profit (EBIT) is a solid turnaround after two years of significant losses and in a volatile economy.”
Source = e-Travel Blackboard: G.A/Share:ExcellentHolidays