Catering business segment
| T043 | KEY FIGURES CATERING | ||||
|---|---|---|---|---|---|
| 2023 | 2022 | Change in % | |||
| Revenue | €m | 1,954 | 1,960 | 0 | |
| of which with companies of the Lufthansa Group |
€m | 66 | 57 | 16 | |
| Operating income | €m | 1,991 | 2,011 | -1 | |
| Operating expenses | €m | 1,945 | 2,015 | -3 | |
| Adjusted EBITDA | €m | 117 | 66 | 77 | |
| Adjusted EBIT | €m | 55 | -11 | ||
| EBIT | €m | 53 | -182 | ||
| Adjusted EBIT margin | % | 2.8 | -0.6 | 3.4 pts | |
| Segment capital expenditure | €m | 35 | 40 | -13 | |
Business activities
LSG group sold to Aurelius.
On 4 April 2023, Deutsche Lufthansa AG signed an agreement with the private equity firm Aurelius on the sale of the LSG group. The sales transaction closed on 31 October 2023.
The business of the LSG group consists of traditional catering and onboard retail along with food commerce activities. The sale of its Catering division forms part of the Lufthansa Group’s strategy of focusing more on its core airline business. The European activities of the LSG group had already been sold off to gategroup in 2019.
The earnings contributions of the Catering segment are presented separately in the Group income statement as “Profit/loss from discontinued operations”. Figures for the previous year were adjusted accordingly. The segment revenue and result are therefore not included in the Group revenue and Adjusted EBIT. The Catering segment was dissolved at the close of the 2023 financial year.
A comparison of the figures for the Catering segment in financial year 2023 with those for the previous year is distorted by the fact that financial year 2023 only covers the first 10 months of the year until the closing of the sale of the LSG group. ↗ Financial performance
Financial performance
Revenue stable year-on-year
Revenue for the LSG group in the period under review was at the same level as in the previous year, at EUR 1,954m (previous year: EUR 1,960m). On a like-for-like basis (from January to October), revenue at the LSG group increased by 22% due to continued positive business performance in the North America and Asia regions. Operating income went down compared with the full year 2022 by 1% to EUR 1,991m (previous year: EUR 2,011m).
Expenses down year-on-year
Operating expenses for the LSG group in the period under review came to EUR 1,945m (previous year: EUR 2,015m). On a like-for-like basis they rose primarily due to the volume- and price-related increase in the cost of materials and staff costs, as well as higher revenue-based airport fees.
The cost of materials and services decreased by 2% to EUR 770m (previous year: EUR 784m). Staff costs reduced by 3% to EUR 811m (previous year: EUR 833m). Depreciation and amortisation went down by 19% to EUR 62m (previous year: EUR 77m). Other operating expenses reduced by 6% to EUR 302m (previous year: EUR 321m).
| T044 | OPERATING EXPENSES CATERING | |||
|---|---|---|---|---|
| 2023 | 2022 | Change | ||
| in €m | in €m | in % | ||
| Cost of materials and services | 770 | 784 | -2 | |
| Staff costs1) | 811 | 833 | -3 | |
| Depreciation and amortisation2) | 62 | 77 | -19 | |
| Other operating expenses3) | 302 | 321 | -6 | |
| Total operating expenses |
1,945 | 2,015 | -3 | |
| 1) Without past service expenses/plan settlement 2) Without impairment loss 3) Without book losses. |
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Adjusted EBIT of EUR 55m
Adjusted EBIT in the period under review improved accordingly to EUR 55m (previous year: EUR -11m). The Adjusted EBIT margin amounted to 2.8% (previous year: -0.6%). EBIT increased to EUR 53m (previous year: EUR -182m).
Segment capital expenditure down by 13%
Segment capital expenditure was 13% down on the year at EUR 35m (previous year: EUR 40m).