Kuoni reports revenue fall in 'challenging market'
Kuoni reported falls in turnover and profit in the six months to June but forecast full-year profits would be on a par with 2013.
Swiss-based Kuoni posted a 6% decline in revenue year on year on and a 9% fall in profit, although it reported the decline “organic turnover” as 1% In half-year results published this morning, Kuoni said: “The operating environment was made challenging by geopolitical events in Egypt, Kenya, Thailand and the Ukraine.”
It added: “Currency trends in Japan, India, Indonesia, Australia, Russia and Scandinavia had a negative effect on customer sentiment.”
However, the company reported operating earnings “similar to the prior year” at CHF 1.2 million and forecast a full-year operating profit of CHF85-CHF90 million.
Chief executive Peter Meier said: “With all the negative geopolitical developments in Egypt, Kenya, Thailand, and the Ukraine, the operating environment has been challenging.
“We expect it to remain so for the rest of this year.”
But he added: “The medium-term financial goals remain the same despite the fact that the current business environment has become more challenging.”
Kuoni described itself as “in a strong competitive position in a difficult market environment”.
The group reported 42% of its turnover came from non-European source markets.
Meier said: “Currency trends in Japan, India, Indonesia, Australia, Russia and Scandinavia had a negative effect on customer sentiment.
“In Scandinavia price and margin erosion prevented an increase in operating earnings in the first ha