The board blames the krone exchange rate, drought and forest fires, among other things.
MINUS: Turnover jump could not prevent red numbers for the charter giant. Photo: INA FASSBENDER / AFPPublished: Published:
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The charter company Tui Norge had a turnover of over NOK 2.6 billion in the financial year which lasted from 1 October 2022 to over the summer – 31 September last year.
Although the company increased its turnover by almost NOK 1.2 billion compared to the previous year, the operating result ended at minus NOK 57 million. The year before, the operating profit ended at minus NOK 15.9 million.
This appears in the company’s annual accounts.
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Negative annual result
In the board’s annual report, it is stated that the number of passengers has increased by 71 per cent, at the same time that the gross margin gross margin Gross profit divided by turnover. It says something about how much the company is left with after the costs have been deducted. has gone from 8.2 per cent to 4.6 per cent.
– The biggest reason for the reduced gross margin is increased costs combined with reduced prices and margins, weak Norwegian grain, challenges with extensive heat waves and drought in parts of Europe as well as general tighter financial conditions for most of our customers, the board writes in the annual report.
The result before tax went from 50.2 million in 2022 to minus 41.8 million in the financial year that ended late summer last year.
The annual result went from 38 million plus to 38.7 million minus.
FOREST FIRE: There was a fire in bushes and undergrowth on the Greek island of Rhodes this summer. Photo: NICOLAS ECONOMOU / Reuters
– Still strong competition
This summer there were some fierce forest fires on the Greek island of Rhodes which led to several charter companies having to cancel their trips to the holiday paradise.
Tui also garnered criticism for its handling of the evacuation from hotels that were near the flaming inferno.
After the pandemic, many people went to the South with their saved money. The following year – in 2023 – more expensive mortgages and high food prices ate up much of the money saved up.
Nevertheless, there were signs that the Norwegians were moving in the direction of the heat as well. This happened despite the fact that the Norwegian krone was at times historically weak against the euro.
After a year of challenges, the board writes in the annual report that the company still has a goal of “overall growth”.
– The board expects continued strong competition in the market, and Tui has a major focus on developing its own tourism products in combination with effective sales in digital channels.
Transferred to Frankfurt
Tui Norge accounts for 23 percent of Tui Nordic’s total revenue. Tui Nordic is part of the German group Tui Group, which did surprisingly well last quarter.
The company’s turnover was a record 4.3 billion euros, approximately NOK 48.7 billion. This is an increase of 15 percent from the same period last year.
Last week, the shareholders voted to delist the company from the London stock exchange, where 10 percent of the shares are traded, to focus instead on the Frankfurt stock exchange.
The transfer will be completed by June 2024, writes CH Aviation. TUI Group has been dual-listed since 2014.
E24 has been in contact with Tui, who, due to the winter holidays, could not comment on the annual accounts on Friday.
2024-02-23 21:32:22
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