Kuoni Group Ramps Up First-Half Turnover

The Kuoni Group increased its first-half turnover by a substantial 11.2 percent in 2006, from the CHF 1,577 million of January-to-June 2005 to CHF 1,753 million. Organic growth added 10.3 percent to first-half turnover and currency movements raised it by 1.0 percent, while acquisitions and divestments2 had a neutral net effect.

Turnover was increased year-on-year in all the Group´s business units. Gross profit rose 9.4 percent from CHF 339.7 million to CHF 371.6 million on the strength of the higher turnover volume.

Gross profit margin slipped marginally from the 21.5 percent of Januaryto-June 2005 to 21.2 percent. The decline is primarily attributable to the lower margins achieved in Switzerland and Scandinavia in the face of higher fuel prices.

Operating costs increased CHF 16.6 million, from the CHF 354.5 million of the prior-year period to CHF 371.1 million. The rise is due mainly to the expansion of the Group´s Asian activities and of its Destination Management network.

Earnings before interest and taxes (EBIT) improved to CHF 0.5 million (compared to minus CHF 14.8 million for the first half of 2005), owing largely to positive business trends in the Destination Management segment and strong performances from the Group´s Asian and Scandinavian subsidiaries.