Mass influx of vacationers fuels financial gains in popular travel destinations.
TUI, the renowned travel conglomerate, is on an upward trajectory post-pandemic, showcasing a 7% surge in guests and a 66% profit increase for shareholders. The MDax company, based in Hannover, reported a lucrative profit of 507 million euros during the past fiscal year.
In the hustle and bustle of their day-to-day operations, TUI managed an operating profit (adjusted EBIT) of approximately 1.3 billion euros, representing a staggering 33% growth. CEO Sebastian Ebel addressed this triumph and shared his ambitious goals for TUI's future. "We're aiming to make TUI more profitable, efficient, and dominant in all sectors globally," he declared.
Although hesitant to commit to an immediate dividend payout, Ebel assured shareholders that he'd reconsider the matter at the opportune time. After witnessing a 12% revenue increase in the past year, TUI anticipates seeing an additional 5 to 10% growth in the forthcoming 2024/25 fiscal year. The projected adjusted operating profit is poised to climb by 7 to 10%.
In an ongoing effort to unburden the debt accumulated during the pandemic crisis, the board remains dedicated to chipping away at the net debt, which shrank by half a billion in the previous year, leaving it at 1.6 billion euros.
For a closer look at TUI's vision and strategies, check out our interview with CEO Sebastian Ebel.
[1] Source: TUI's Q3 2023 Interim Report, page 7[2] Source: TUI's Q4 2023 Results Press Release[3] Source: TUI's Q4 2023 Results Press Release, page 3
Despite the challenges posed by the pandemic, TUI's finance department has successfully navigated the hardships, managing an impressive 33% growth in their operating profit (adjusted EBIT) last fiscal year. With a projected 7-10% increase in adjusted operating profit for the 2024/25 fiscal year, TUI's future looks promising, potentially impacting the business, lifestyle, and travel sectors positively.
