LSG Group continues growth path

March 18, 2015

Neu-Isenburg, Germany– – LSG Group, a wholly owned subsidiary of Deutsche Lufthansa AG, is looking back at yet another year of growth. Thanks to rising demand throughout most of its extensive network, the company was able to close its 2014 business year with consolidated revenues of 2,633 million euros, which is a 4.7-percent increase over the previous year. Changes in the group of consolidated companies led to a revenue growth of 22 million euros. An operating result of 100 million euros is at level with the previous year, again validating the success of its expansion strategy.

“LSG Sky Chefs has enjoyed a solid and sustainable operational and financial performance, providing a strong basis for our future,” said Chief Executive Officer Erdmann Rauer. “Our team has once again proven that we are able to respond to the everchanging market conditions by identifying new opportunities and developing innovative products and services that match the increasingly diversified needs of our customers and consumers.”

Furthermore, the company’s network grew in 2014. Its far-reaching presence in Russia now includes Rostov-on-Don as part of its joint venture with Aeroflot, Aeromar. In China, LSG Sky Chefs launched a new joint venture in Wenzhou and is now present at 19 major airports in that country. Within the framework of new partnerships, the company has also entered the strategically important Japanese and Bulgarian airline catering markets. In addition, the company opened state-of-the-art production sites in Panama City, Panama, Auckland, New Zealand, and Nanjing, China.

The Group’s revenue increase is also a result of the successful retention and extension of multiple customer contracts for airline catering services, as well as areas beyond that core business. The most important contracts include the global agreement with Delta Air Lines, the expansion of the relationship with JetBlue in the U.S., and extensions with Emirates, Singapore and Qantas. New onboard retail agreements were signed with Germanwings, SunExpress and Air Baltic in their respective markets, as well as with Spirit Airlines in North and South America. LSG Sky Chefs was also able to further consolidate its market position in the train services segment by obtaining new agreements with French high-speed operator iDTGV and the Italian NTV.

In the 2015 business year, the LSG Group foretells an increase in revenues and improvement in earnings. This positive outlook is based on the anticipated passenger growth, continued expansion in additional products and services for airlines and other target groups and the extension of various customer relationships. The company’s future emphasis will be on improving its service quality and applying modern technology in process optimization, as well as product and service innovation. In response to cost restrictions, LSG Sky Chefs will maintain its rigid cost management and identify synergies at all levels and areas of the organization.

“We will expand our market proximity and commitment in order to meet customers’ increasingly eclectic requirements, such as tailored onboard service programs and retail models. At the same time, we will evaluate further potentials in areas where we can successfully apply our core competencies in food preparation and logistics,” added Mr. Rauer.

The LSG Group is the world’s leading provider of end-to-end on-board products and services. These include catering, onboard retail and entertainment, onboard equipment and logistics, consulting and lounge services. The company’s dedication to culinary excellence and expertise in logistics has led to its successful entry into adjacent markets like train services and convenience retail. Its catering activities are marketed under the “LSG Sky Chefs” brand name, through which it delivers 591 million meals a year and is present at 211 airports in 50 countries. In 2015, the companies belonging to the LSG Group achieved consolidated revenues of € 3.0 billion.