SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 6-K
Report of Foreign Private Issuer
Pursuant to Rule 13a-16 or 15d-16
of the Securities Exchange Act of 1934
For the
month of November
2019
RYANAIR HOLDINGS PLC
(Translation
of registrant's name into English)
c/o Ryanair Ltd Corporate Head Office
Dublin
Airport
County Dublin Ireland
(Address
of principal executive offices)
Indicate
by check mark whether the registrant files or will file
annual
reports
under cover Form 20-F or Form 40-F.
Form
20-F..X.. Form 40-F
Indicate
by check mark whether the registrant by furnishing the
information
contained
in this Form is also thereby furnishing the information to
the
Commission
pursuant to Rule 12g3-2(b) under the Securities
Exchange
Act of
1934.
Yes
No ..X..
If
"Yes" is marked, indicate below the file number assigned to the
registrant
in
connection with Rule 12g3-2(b): 82- ________
RYANAIR REPORTS FLAT H1 PROFIT OF €1.15BN.
FY PAT GUIDANCE NARROWED TO NEW RANGE OF €800M -
€900M.
Ryanair
Holdings plc today (4 Nov.) reported an unchanged H1 net profit of
€1.15bn and pointed to the following highlights.
●
Traffic grew 11% to
86m guests.
●
Revenue per guest
rose 1% (5% lower fares; ancillary rev. up 16%)
●
90% of flights
arrived on-time (excl. ATC delays)
●
5 new bases opened
(Bordeaux, Marseille, Toulouse, Southend & Berlin)
●
Georgia &
Armenia become the 39th &
40th
countries in Ryanair’s network
●
New Environmental
Policy launched
●
€250m
returned to shareholders under €700m buyback
programme.
|
H1 (IFRS) - Group
|
Sep. 30 2018
|
Sep. 30 2019
|
Change
|
|
Guests
|
76.6m
|
85.7m
|
+11%
|
|
Load
Factor
|
96%
|
96%
|
-
|
|
Revenue
|
€4.84bn
|
€5.39bn
|
+11%
|
|
PAT
|
€1.15bn
|
€1.15bn
|
-
|
|
Basic
EPS
|
€0.9974
|
€1.0247
|
+3%
|
EUROPE’S GREENEST, CLEANEST AIRLINE:
The
welfare of our planet is of vital importance to our customers and
our people. Ryanair has the lowest carbon emissions of any major EU
airline at just 66 grams of CO₂ per passenger km.
Passengers
switching to Ryanair can halve their CO₂ emissions compared
to some other major EU carriers. Ryanair operates the youngest
fleet, the highest load factors, and newest most fuel-efficient
engines. Ryanair will, over the next decade, cut carbon emissions
by 10% and noise emissions by 40%.
Ryanair
launched its new Environmental Policy at its Sept. AGM, committing
to;
●
Be plastic free in
5 years;
●
Cut noise emissions
by up to 40% per seat;
●
Cut CO₂
emissions by a further 10% by 2030 (up to 50% less than other major
EU airlines);
●
Encourage guests to
use our voluntary carbon offset programme;
●
Work with
environmental partners to improve our environment in
Europe.
While
aviation is responsible for just 2% of Europe’s carbon, our
industry must work to further cut this very low level of emissions.
EU airlines already pay substantial environmental taxes –
Ryanair will pay over €630m in such taxes this year. For
further info. click here: www.ryanair.com/environment.
BUSINESS REVIEW:
Revenues
Revenue
grew 11% to €5.39bn. Scheduled Sales rose 5% to €3.74bn
as we carried 86m guests at 5% lower air fares due to the weak
consumer demand in the UK and overcapacity in Germany and Austria.
Ancillary Revenue jumped 28% to €1.65bn as more guests chose
Priority Boarding and Preferred Seat services. In Oct., Ryanair
Labs launched a new digital platform with improved, personalised,
guest offers.
Costs
Our
fuel bill rose 22% (+€289m) to €1.59bn due to higher
prices and 11% traffic growth. Ex-fuel unit costs rose 2%,
primarily due to higher staff costs, increased pilot pay and higher
than expected crew ratios (as pilot resignations slowed to almost
zero), higher maintenance (as older aircraft remain in the fleet
due to the Boeing MAX delivery delays), and the consolidation of
Lauda costs. This was partially offset by improved punctuality and
lower EU261 costs. Our fuel is 90% hedged for FY20 at a rate of
$71bbl. Currently 63% of our FY21 fuel is hedged at $61bbl. We
continue to negotiate attractive growth deals as airports compete
to win Ryanair’s traffic growth. Sadly, due to the MAX
delivery delays, we will be forced to cut or close a number of loss
making bases this winter leading to pilot and cabin crew job
losses. We continue to work with our people and their unions to
finalise this process.
Group Airlines
The
Group airlines continue to develop strongly. Buzz flew 24 B737s in
S.19 from its 6 Polish bases, and is developing growth
opportunities in other Central EU countries. 7 aircraft are
dedicated to charter operations with the remaining 17 operating
scheduled flying for Ryanair.
Lauda’s
pricing environment remains difficult in its key Austrian and
German markets and Lauda’s revenue per guest remains behind
target. They are working hard to grow ancillary services, lower
costs and increase efficiencies. This summer Lauda operated 80
routes across its 4 bases. With A320 aircraft and pilots recently
released from the failure of Thomas Cook and Adria Airways, Lauda
plans to grow from a fleet of 23 A320s in S.19 to 38 for S.20.
While still loss making in FY20, we expect this very strong traffic
growth, cost reduction and improved ancillary spend will push it
towards breakeven in FY21.
Malta
Air became the 4th airline in the
Ryanair Group in June. Over the next 3 years Malta Air will grow
our Maltese base from 6 to 10 based aircraft. It will also, over
the coming year, operate most of the Group’s French, German
and Italian bases.
During
H1 Ryanair DAC opened 5 new bases (Bordeaux, Marseille, Toulouse,
Southend & Berlin) and launched 241 new routes, including new
country markets in Ukraine, Turkey and Lebanon. Ryanair will
operate to Georgia and Armenia in S.20. Eddie Wilson was
appointed CEO of Ryanair DAC in Sept., reporting directly to the
Group CEO.
Boeing MAX update
Delivery
of the Group’s first B737-MAX-200 aircraft has been
repeatedly delayed from Q2 2019. We now expect our first MAX
aircraft to deliver in March/April 2020 at the earliest (subject to
EASA approval). The risk of further delay is rising. We expect to
receive only 20 MAX-200s (previously 58) in time for S.20 which has
cut our S.20 growth rate from 7% to 3% (162m to 157m guests in
FY21). We remain confident that these “gamechanger”
aircraft (which have 4% more seats, but burn 16% less fuel) when
delivered will transform our cost base and our business for the
next decade. Due to these delivery delays, we will not see any of
these expected cost savings delivered until FY21.
Balance Sheet & Shareholder Returns
Ryanair’s
BBB+ rated balance sheet remains one of the strongest in the
industry and 70% of our aircraft fleet is debt free. This allows us
to grow while weaker airlines collapse, sell or retrench in the
current, difficult, market conditions. We have, to date, returned
over €250m to shareholders under our €700m 2019 share
buyback programme. With €450m still unspent, we retain the
flexibility to repurchase more shares from UK holders in any hard
Brexit scenario. Despite the share buyback and the impact of IFRS16
(€227m), net debt was just €460m at period
end.
Outlook
Our
outlook for the remainder of the year remains cautious. We try to
avoid the unreliable optimism of some competitors. Full year
traffic will grow 8% to 153m but we expect a slightly better fare
environment than last winter (although we have limited H2
visibility). This however remains sensitive to any market
uncertainty such as a ‘no deal’ Brexit. We expect
ancillary revenues will grow ahead of traffic growth, supporting
full-year revenue per guest growth of 2% to 3%. The full year fuel
bill will rise by €450m and ex-fuel unit costs will increase
by 2%. While Lauda’s losses will be higher than originally
expected, due to overcapacity in Austria and Germany, traffic will
be higher as we take advantage of the availability of low cost A320
leases. We are therefore narrowing our full year guidance to a new
range of €800m to €900m PAT. This guidance is heavily
dependent on close in H2 fares, Brexit and the absence of any
security events.
ENDS
|
For
further information
please
contact:
www.ryanair.com
|
Neil
Sorahan
Ryanair
Holdings plc
Tel: +353-1-9451212
|
Piaras
Kelly
Edelman
Tel: +353-1-6789333
|
Ryanair Holdings plc, Europe’s largest airline group, is the
parent company of Buzz, Lauda, Malta Air & Ryanair DAC.
Carrying over 153 m guests p.a. on more than 2,400 daily flights
from 86 bases, the group connects over 200 destinations in 40
countries on a fleet of over 475 aircraft, with a further 210
Boeing 737’s on order, which will enable the Ryanair Group to
lower fares and grow traffic to 200m p.a. by FY24. Ryanair has a
team of over 19,000 highly skilled aviation professionals
delivering Europe’s No.1 on-time performance, and an industry
leading 34-year safety record. Ryanair is Europe’s greenest
cleanest airline group and customers switching to fly Ryanair can
reduce their CO₂ emissions by up to 50% compared to the other
Big 4 EU major airlines.
Certain of the information included in this release is forward
looking and is subject to important risks and uncertainties that
could cause actual results to differ materially. It is not
reasonably possible to itemise all of the many factors and specific
events that could affect the outlook and results of an airline
operating in the European economy. Among the factors that are
subject to change and could significantly impact Ryanair’s
expected results are the airline pricing environment, fuel costs,
competition from new and existing carriers, market prices for the
replacement of aircraft, costs associated with environmental,
safety and security measures, actions of the Irish, U.K., European
Union (“EU”) and other governments and their respective
regulatory agencies, uncertainties surrounding Brexit, weather
related disruptions, ATC strikes and staffing related disruptions,
delays in the delivery of contracted aircraft, fluctuations in
currency exchange rates and interest rates, airport access and
charges, labour relations, the economic environment of the airline
industry, the general economic environment in Ireland, the UK and
Continental Europe, the general willingness of passengers to travel
and other economics, social and political factors and unforeseen
security events.
Ryanair Holdings plc and Subsidiaries
Condensed Consolidated Interim Balance Sheet as at September 30,
2019 (unaudited)
|
|
|
At Sep 31,
|
At Mar 31,
|
|
|
|
2019
|
2019
|
|
|
Note
|
€M
|
€M
|
|
Non-current assets
|
|
|
|
|
Property,
plant and equipment
|
10
|
9,144.7
|
9,029.6
|
|
Right-of-use-asset
|
1
|
211.9
|
-
|
|
Intangible
assets
|
12
|
146.4
|
146.4
|
|
Derivative
financial instruments
|
12
|
365.3
|
227.5
|
|
Deferred
tax
|
4
|
66.9
|
43.2
|
|
Total non-current assets
|
|
9,935.2
|
9,446.7
|
|
|
|
|
|
|
|
Current assets
|
|
|
|
|
Inventories
|
|
4.9
|
2.9
|
|
Other
assets
|
|
265.7
|
238.0
|
|
Assets
held for sale
|
11
|
139.3
|
-
|
|
Trade
receivables
|
|
75.6
|
59.5
|
|
Derivative
financial instruments
|
12
|
389.6
|
308.7
|
|
Restricted
cash
|
|
34.4
|
34.9
|
|
Financial
assets: cash > 3 months
|
|
1,779.9
|
1,484.4
|
|
Cash
and cash equivalents
|
|
2,118.2
|
1,675.6
|
|
Total current assets
|
|
4,807.6
|
3,804.0
|
|
|
|
|
|
|
|
Total assets
|
|
14,742.8
|
13,250.7
|
|
|
|
|
|
|
|
Current liabilities
|
|
|
|
|
Provisions
|
|
97.7
|
102.9
|
|
Trade
payables
|
|
1,016.5
|
573.8
|
|
Accrued
expenses and other liabilities
|
|
2,071.7
|
2,992.1
|
|
Current
lease liability
|
1
|
64.2
|
-
|
|
Current
maturities of debt
|
|
262.4
|
309.4
|
|
Derivative
financial instruments
|
12
|
158.2
|
189.7
|
|
Current
tax
|
4
|
111.6
|
31.6
|
|
Total current liabilities
|
|
3,782.3
|
4,199.5
|
|
|
|
|
|
|
Non-current liabilities
|
|
|
|
|
Provisions
|
|
38.5
|
32.7
|
|
Derivative
financial instruments
|
12
|
7.2
|
8.0
|
|
Deferred
tax
|
4
|
492.0
|
460.6
|
|
Non-current
lease liability
|
1
|
163.0
|
-
|
|
Non-current
maturities of debt
|
|
3,902.9
|
3,335.0
|
|
Total non-current liabilities
|
|
4,603.6
|
3,836.3
|
|
|
|
|
|
|
|
Shareholders' equity
|
|
|
|
|
Issued
share capital
|
13
|
6.7
|
6.8
|
|
Share
premium account
|
|
723.0
|
719.4
|
|
Other
undenominated capital
|
13
|
3.3
|
3.2
|
|
Retained
earnings
|
13
|
5,100.4
|
4,181.9
|
|
Other
reserves
|
|
523.5
|
303.6
|
|
Shareholders' equity
|
|
6,356.9
|
5,214.9
|
|
|
|
|
|
|
|
Total liabilities and shareholders' equity
|
|
|
14,742.8
|
13,250.7
|
Ryanair Holdings plc and Subsidiaries
Condensed Consolidated Interim Income Statement for the Half-Year
ended September 30, 2019 (unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
IFRS
|
IFRS
|
|
|
|
|
|
H1-Sep 30,
|
H1-Sep
30,
|
|
|
|
|
Change*
|
2019
|
2018
|
|
|
|
Note
|
%
|
€M
|
€M
|
|
Operating revenues
|
|
|
|
|
|
|
Scheduled
revenues
|
|
+5%
|
3,735.0
|
3,547.5
|
|
|
Ancillary
revenues
|
|
+28%
|
1,654.6
|
1,290.5
|
|
Total operating revenues
|
|
+11%
|
5,389.6
|
4,838.0
|
|
|
|
|
|
|
|
Operating expenses
|
|
|
|
|
|
|
Fuel and oil
|
|
+22%
|
1,586.9
|
1,298.2
|
|
|
Airport and handling charges
|
|
+12%
|
660.2
|
586.9
|
|
|
Staff costs
|
|
+18%
|
583.3
|
495.4
|
|
|
Route charges
|
|
+3%
|
426.0
|
411.8
|
|
|
Depreciation
|
|
+19%
|
381.1
|
321.1
|
|
|
Marketing, distribution and other
|
|
+5%
|
299.1
|
283.9
|
|
|
Maintenance, materials and repairs
|
|
+40%
|
137.2
|
98.0
|
|
|
Aircraft rentals
|
|
-28%
|
27.5
|
38.1
|
|
Total operating expenses
|
|
+16%
|
4,101.3
|
3,533.5
|
|
|
|
|
|
|
|
|
Operating profit/(loss)
|
|
-1%
|
1,288.3
|
1,304.5
|
|
|
|
|
|
|
|
Other (expense)/income
|
|
|
|
|
|
|
Net finance expense
Share of associate losses
|
12
|
-14%
|
(26.6)
-
|
(31.1)
(9.8)
|
|
|
Foreign exchange gain
|
|
-
|
(2.2)
|
(0.1)
|
|
Total other (expense)/income
|
|
-30%
|
(28.8)
|
(41.0)
|
|
|
|
|
|
|
|
|
Profit before tax
|
|
0%
|
1,259.5
|
1,263.5
|
|
|
|
|
|
|
|
|
|
Tax (expense)/credit on profit
|
4
|
-5%
|
(106.8)
|
(112.8)
|
|
|
|
|
|
|
|
|
Profit for the quarter – attributable to equity holders of
parent
|
|
0%
|
1,152.7
|
1,150.7
|
|
|
|
|
|
|
|
|
|
Earnings per ordinary share (€)
|
|
|
|
|
|
|
Basic
|
9
|
+3%
|
1.0247
|
0.9974
|
|
|
Diluted
|
9
|
+3%
|
1.0204
|
0.9892
|
|
|
Weighted
ave. no. ord. shares (in Ms)
|
|
|
|
|
|
|
Basic
|
9
|
|
1,124.9
|
1,153.7
|
|
|
Diluted
|
9
|
|
1,129.7
|
1,163.2
|
Condensed Consolidated Interim Income Statement for the Quarter
ended September 30, 2019 (unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
IFRS
|
IFRS
|
|
|
|
|
|
Quarter
|
Quarter
|
|
|
|
|
|
Ended
|
Ended
|
|
|
|
|
|
Sep 30,
|
Sep
30,
|
|
|
|
|
Change*
|
2019
|
2018
|
|
|
|
Note
|
%
|
€M
|
€M
|
|
Operating revenues
|
|
|
|
|
|
|
Scheduled
revenues
|
|
+6%
|
2,717.7
|
2,093.5
|
|
|
Ancillary
revenues
|
|
+29%
|
859.8
|
665.6
|
|
Total operating revenues
|
|
+12%
|
3,077.5
|
2,759.1
|
|
|
|
|
|
|
|
Operating expenses
|
|
|
|
|
|
|
Fuel and oil
|
|
+20%
|
802.9
|
667.4
|
|
|
Airport and handling charges
|
|
+9%
|
334.7
|
306.7
|
|
|
Staff costs
|
|
+14%
|
286.0
|
250.6
|
|
|
Route charges
|
|
+1%
|
216.3
|
213.4
|
|
|
Depreciation
|
|
+15%
|
188.2
|
164.0
|
|
|
Marketing, distribution and other
|
|
0%
|
154.5
|
154.1
|
|
|
Maintenance, materials and repairs
|
|
+42%
|
69.1
|
48.7
|
|
|
Aircraft rentals
|
|
-37%
|
12.8
|
20.2
|
|
Total operating expenses
|
|
+13%
|
2,064.5
|
1,825.1
|
|
|
|
|
|
|
|
|
Operating profit/(loss)
|
|
+8%
|
1,013.0
|
934.0
|
|
|
|
|
|
|
|
Other (expense)/income
|
|
|
|
|
|
|
Net finance expense
Share of associate losses
|
|
-9%
|
(13.1)
-
|
(14.4)
(0.5)
|
|
|
Foreign exchange gain
|
|
-
|
(2.3)
|
(1.0)
|
|
Total other (expense)/income
|
|
-3%
|
(15.4)
|
(15.9)
|
|
|
|
|
|
|
|
|
Profit before tax
|
|
+9%
|
997.6
|
918.1
|
|
|
|
|
|
|
|
|
|
Tax (expense)/credit on profit
|
4
|
+14%
|
(87.4)
|
(76.6)
|
|
|
|
|
|
|
|
|
Profit for the quarter – attributable to equity holders of
parent
|
|
+8%
|
910.2
|
841.5
|
|
|
|
|
|
|
|
|
|
Earnings per ordinary share (€)
|
|
|
|
|
|
|
Basic
|
9
|
+11%
|
0.8139
|
0.7345
|
|
|
Diluted
|
9
|
+11%
|
0.8107
|
0.7291
|
|
|
Weighted
ave. no. ord. shares (in Ms)
|
|
|
|
|
|
|
Basic
|
9
|
|
1,118.3
|
1,145.7
|
|
|
Diluted
|
9
|
|
1,122.7
|
1,154.1
|
Ryanair Holdings plc and Subsidiaries
Condensed Consolidated Interim Statement of Comprehensive Income
for the Half-Year ended
September 30, 2019
(unaudited)
|
|
|
|
|
|
Half-Year
|
Half-Year
|
|
|
Ended
|
Ended
|
|
|
Sep 30,
|
Sep 30,
|
|
|
2019
|
2018
|
|
|
€M
|
€M
|
|
|
|
|
|
Profit for the half-year
|
1,152.7
|
1,150.7
|
|
|
|
|
|
Other comprehensive income:
|
|
|
|
Items that are or may be reclassified to profit or
loss:
|
|
|
|
Cash flow hedge reserve movements:
|
|
|
|
Net
movement in cash flow hedge reserve
|
216.5
|
643.3
|
|
|
|
|
|
|
Other comprehensive income/(loss) for the half-year, net of income
tax
|
216.5
|
643.3
|
|
|
|
|
|
Total comprehensive income for the half-year attributable to equity
holders of parent
|
1,369.2
|
1,794.0
|
Ryanair Holdings plc and Subsidiaries
Condensed Consolidated Interim Statement of Comprehensive Income
for the quarter ended
September 30, 2019
(unaudited)
|
|
|
|
|
|
Quarter
|
Quarter
|
|
|
Ended
|
Ended
|
|
|
Jun 30,
|
Jun 30,
|
|
|
2019
|
2018
|
|
|
€M
|
€M
|
|
|
|
|
|
Profit for the quarter
|
910.2
|
841.5
|
|
|
|
|
|
Other comprehensive income:
|
|
|
|
Items that are or may be reclassified to profit or
loss:
|
|
|
|
Cash flow hedge reserve movements:
|
|
|
|
Net
movement in cash flow hedge reserve
|
293.2
|
56.4
|
|
|
|
|
|
|
Other comprehensive income/(loss) for the quarter, net of income
tax
|
293.2
|
56.4
|
|
|
|
|
|
Total comprehensive income for the quarter – attributable to
equity holders of parent
|
1,203.4
|
897.9
|
Ryanair Holdings plc and Subsidiaries
Condensed Consolidated Interim Statement of Cash Flows for the
Half-Year ended September 30, 2019 (unaudited)
|
|
|
|
Half-Year
|
Half-Year
|
|
|
|
|
Ended
|
Ended
|
|
|
|
|
Sep 30,
|
Sep 30,
|
|
|
|
|
2019
|
2018
|
|
|
|
Note
|
€M
|
€M
|
|
Operating activities
|
|
|
|
|
|
Profit after tax
|
|
1,152.7
|
1,150.7
|
|
|
|
|
|
|
|
Adjustments to reconcile profit after tax to net cash provided by
operating activities
|
|
|
|
|
|
Depreciation
|
|
381.1
|
319.2
|
|
|
Increase in inventories
|
|
(2.0)
|
(3.0)
|
|
|
Tax expense on profit
|
|
106.8
|
112.8
|
|
|
Share based payments
|
|
4.0
|
5.0
|
|
|
Increase in intangible assets
|
|
-
|
(94.4)
|
|
|
(Increase)/decrease in trade receivables
|
|
(16.1)
|
3.5
|
|
|
Increase in other assets
|
|
(27.4)
|
(102.0)
|
|
|
Increase in trade payables
|
|
442.6
|
97.3
|
|
|
Decrease in accrued expenses
|
|
(909.1)
|
(763.1)
|
|
|
Decrease in other creditors
|
|
-
|
(2.1)
|
|
|
Increase/(decrease) in provisions
|
|
0.7
|
(0.5)
|
|
|
(Decrease)/increase in net finance expense
Share of equity accounted investment’s loss
|
|
(6.9)
-
|
1.3
9.8
|
|
|
Tax paid
|
|
(49.3)
|
(81.6)
|
|
Net cash provided by operating activities
|
|
1,077.1
|
652.9
|
|
|
|
|
|
|
|
Investing activities
|
|
|
|
|
|
Capital expenditure (purchase of property, plant and
equipment)
|
|
(608.2)
|
(808.4)
|
|
|
Decrease in restricted cash
|
|
0.5
|
-
|
|
|
(Increase)/decrease in financial assets: cash > 3
months
|
|
(295.5)
|
620.2
|
|
|
Investment in associate
|
|
-
|
(26.0)
|
|
|
Cash acquired with subsidiary undertakings
|
|
-
|
7.0
|
|
Net cash (used in) investing activities
|
|
(903.2)
|
(207.2)
|
|
|
|
|
|
|
|
Financing activities
|
|
|
|
|
|
Shareholder returns
|
13
|
(226.0)
|
(536.7)
|
|
|
Net proceeds from shares issued
|
|
3.6
|
-
|
|
|
Long term borrowings
|
|
750.0
|
-
|
|
|
Repayments of long term borrowings
|
|
(230.8)
|
(130.8)
|
|
|
Lease liabilities paid
|
|
(28.1)
|
-
|
|
Net cash from/(used) financing activities
|
|
268.7
|
(667.5)
|
|
|
|
|
|
|
|
Increase/(decrease) in cash and cash equivalents
|
|
442.6
|
(221.8)
|
|
Cash and cash equivalents at
beginning of the period
|
|
1,675.6
|
1,515.0
|
|
Cash and cash equivalents at end of the period
|
|
2,118.2
|
1,293.2
|
|
|
|
|
|
Ryanair Holdings plc and Subsidiaries
Condensed Consolidated Interim Statement of Changes in
Shareholders’ Equity for the Half-Year ended
September 30, 2019 (unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
Other Reserves
|
|
|
|
|
Ordinary
|
|
Issued
Share
|
|
Share
Premium
|
|
Retained
|
|
Other
Undenom.
|
|
|
|
Other
|
|
|
|
|
Shares
|
|
Capital
|
|
Account
|
|
Earnings
|
|
Capital
|
|
Hedging
|
|
Reserves
|
|
Total
|
|
|
M
|
|
€M
|
|
€M
|
|
€M
|
|
€M
|
|
€M
|
|
€M
|
|
€M
|
|
Balance at March 31, 2018
|
1,171.2
|
|
7.0
|
|
719.4
|
|
4,077.9
|
|
3.0
|
|
(359.7)
|
|
21.3
|
|
4,468.9
|
|
Adjustment on initial application of IFRS 15 (net of
tax)
|
-
|
|
-
|
|
-
|
|
(249.4)
|
|
-
|
|
-
|
|
-
|
|
(249.4)
|
|
Adj. balance at March 31, 2018
|
1,171.2
|
|
7.0
|
|
719.4
|
|
3,828.5
|
|
3.0
|
|
(359.7)
|
|
21.3
|
|
4,219.5
|
|
Profit for the half-year
|
-
|
|
-
|
|
-
|
|
1,150.7
|
|
-
|
|
-
|
|
-
|
|
1,150.7
|
|
Other comprehensive income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net movements in cash flow reserve
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
634.3
|
|
-
|
|
634.3
|
|
Total other comprehensive income
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
634.3
|
|
-
|
|
634.3
|
|
Total comprehensive income
|
-
|
|
-
|
|
-
|
|
1,150.7
|
|
-
|
|
634.3
|
|
-
|
|
1,785.0
|
|
Transactions with owners of the Company recognised directly in
equity
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Share-based payments
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
5.0
|
|
5.0
|
|
Repurchase of ordinary equity shares
|
-
|
|
-
|
|
-
|
|
(532.4)
|
|
-
|
|
-
|
|
-
|
|
(532.4)
|
|
Cancellation of repurchased ordinary shares
|
(37.8)
|
|
(0.2)
|
|
|
|
-
|
|
0.2
|
|
-
|
|
-
|
|
-
|
|
Balance at September 30, 2018
|
1,133.4
|
|
6.8
|
|
719.4
|
|
4,446.8
|
|
3.2
|
|
274.6
|
|
26.3
|
|
5,477.1
|
|
Loss for the half-year
|
-
|
|
-
|
|
-
|
|
(265.7)
|
|
-
|
|
-
|
|
-
|
|
(265.7)
|
|
Other comprehensive income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net movements in cash flow reserve
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
Total other comprehensive income
|
-
|
|
-
|
|
-
|
|
(265.7)
|
|
-
|
|
-
|
|
-
|
|
(265.7)
|
|
Total comprehensive income
|
-
|
|
-
|
|
-
|
|
(265.7)
|
|
-
|
|
-
|
|
-
|
|
(265.7)
|
|
Transactions with owners of the Company recognised directly in
equity
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Share-based payments
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
2.7
|
|
2.7
|
|
Repurchase of ordinary equity shares
|
-
|
|
-
|
|
-
|
|
(28.1)
|
|
-
|
|
-
|
|
-
|
|
(28.1)
|
|
Other
|
-
|
|
-
|
|
-
|
|
28.9
|
|
-
|
|
-
|
|
-
|
|
28.9
|
|
Balance at March 31, 2019
|
1,133.4
|
|
6.8
|
|
719.4
|
|
4,181.9
|
|
3.2
|
|
274.6
|
|
29.0
|
|
5,214.9
|
|
Adjustment on initial application of IFRS 16
|
-
|
|
-
|
|
-
|
|
(9.7)
|
|
-
|
|
-
|
|
-
|
|
(9.7)
|
|
Adj. balance at April 01, 2019
|
1,133.4
|
|
6.8
|
|
719.4
|
|
4,172.2
|
|
3.2
|
|
274.6
|
|
29.0
|
|
5,205.2
|
|
Profit for the quarter
|
-
|
|
-
|
|
-
|
|
1,152.7
|
|
-
|
|
-
|
|
-
|
|
1,152.7
|
|
Other comprehensive income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net movements in cash flow reserve
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
216.5
|
|
-
|
|
216.5
|
|
Total other comprehensive income
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
216.5
|
|
-
|
|
216.5
|
|
Total comprehensive income
|
-
|
|
-
|
|
-
|
|
1,152.7
|
|
-
|
|
216.5
|
|
-
|
|
1369.2
|
|
Transactions with owners of the Company recognised directly in
equity
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Issue of ordinary equity shares
|
0.6
|
|
-
|
|
3.6
|
|
-
|
|
-
|
|
|
|
|
|
3.6
|
|
Share-based payments
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
4.0
|
|
4.0
|
|
Repurchase of ordinary equity shares
|
-
|
|
-
|
|
-
|
|
(226.0)
|
|
-
|
|
-
|
|
-
|
|
(226.0)
|
|
Other
|
-
|
|
-
|
|
-
|
|
0.9
|
|
-
|
|
-
|
|
-
|
|
0.9
|
|
Cancellation of repurchased ordinary shares
|
(21.8)
|
|
(0.1)
|
|
-
|
|
-
|
|
0.1
|
|
-
|
|
-
|
|
-
|
|
Transfer of exercised and expired share based awards
|
-
|
|
-
|
|
-
|
|
0.5
|
|
-
|
|
-
|
|
(0.5)
|
|
-
|
|
Balance at September 30, 2019
|
1,112.2
|
|
6.7
|
|
723.0
|
|
5,100.3
|
|
3.3
|
|
491.1
|
|
32.5
|
|
6,356.9
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ryanair Holdings plc and Subsidiaries
MD&A Half-Year Ended September 30, 2019
Income Statement
Scheduled revenues:
Scheduled
revenues increased by 5% to
€3,735.0M due to 11% traffic growth to 85.7M guests
offset by a 5% reduction in average fares.
Ancillary
revenues rose by 28% to
€1,654.6M due to 11% traffic growth and improved
uptake of ancillary products, particularly priority boarding and
reserved seating.
Total revenues:
As a
result of the above, total revenues increased by 11% to €5,389.6M.
Operating Expenses:
Fuel
and oil rose by 22% to
€1,586.9M due to higher fuel prices and a 12% increase
in flight hours.
Airport
and handling
charges:
Airport
and handling charges increased by 12% to €660.2M due to an 11%
increase in traffic, new enhanced handling arrangements in
Stansted, Spain & Poland and the consolidation of Lauda (only
consolidated in late August 2018).
Staff
costs increased 18% to
€583.3M due to 12% more flight hours, the
consolidation of Lauda (only consolidated in late August 2018),
higher crewing ratios and the annualisation of pilot pay
increases.
Route
charges rose by 3% to
€426.0M due to an 11% increase in sectors, offset by a
decrease in unit rates.
Depreciation
is 19% higher at
€381.1M, due to the 29 additional B737 owned aircraft
in the fleet at period end, the purchase of spare engines and
simulators and the impact of IFRS 16 (€27.3M), which was
adopted from April 1, 2019.
Marketing,
distribution and
other:
Marketing,
distribution and other rose by 5%
to €299.1M, is slower than traffic growth, due
to lower EU261 compensation costs.
Maintenance,
materials and
repairs:
Maintenance,
materials and repairs increased by 40% to €137.2M due to higher
scheduled engine maintenance due to an ageing fleet and MAX
delivery delays, costs associated with the handback of Airbus
aircraft and maintenance provision for 11 additional A320 operating
leases.
Aircraft rentals:
Aircraft
rentals fell by 28% to
€27.5M due to fewer leased B737 aircraft in the fleet
compared to the same period last year (FY20 26, FY19 28) and the
adoption of IFRS16 which is offset by higher
depreciation.
Unit cost per pax rose by 5%. Excluding fuel, unit costs
increased by 2%, much of which was due to the absence of Lauda for
most of H1 FY19 (consolidated in late August 2018), the handback of
Airbus leases, higher crewing ratios and the annualisation of pilot
pay increases.
Net
finance expense decreased by 14% to
€26.6M primarily due to higher interest rates achieved
on deposits and the re-financing of debt at lower interest rates.
IFRS16 had a negative €2.6M impact in the
half-year.
Balance sheet:
Gross
cash increased by €737.6M to €3,932.5M at September 30,
2019.
Gross
debt rose by €748.1M to €4,392.5M due to a new
€750.0M low cost syndicated bank facility and the impact of
IFRS16 (€227.2M), offset by €230.8M debt
repayments.
€1,077.1M
net cash was generated by operating activities. Capital expenditure
was €608.2M and shareholder returns amounted to
€226.0M.
Net
debt was €460.0M (including €227.2M IFRS16 lease
liability) at period end. (March 2019: €449.5M).
Shareholders’
equity increased by €1,142.0M to €6,356.9M in the
period due to IFRS hedge accounting treatment for derivatives of
€216.5M and consolidated profit after tax of €1,152.7M,
offset by €226.0M shareholder returns.
MD&A Quarter Ended September 30, 2019
Income Statement
Scheduled revenues:
Scheduled
revenues increased by 6% to
€2,217.7M due to 10% traffic growth to 43.8M guests
offset by a 3% reduction in average fares.
Ancillary
revenues rose by 29% to
€859.8M due to 10% traffic growth and improved uptake
of ancillary products, particularly priority boarding and reserved
seating.
Total Revenue:
As a
result of the above, total revenue increased by 12% to €3,077.5M.
Operating Expenses:
Fuel
and oil rose by 20% to
€802.9M due to higher fuel prices and an 11% increase
in flight hours.
Airport
and handling
charges:
Airport
and handling charges increased by 9% to €334.7M primarily due to a
10% increase in traffic, new enhanced handling arrangements in
Stansted, Spain & Poland and the consolidation of Lauda (only
consolidated in late August 2018).
Staff
costs increased 14% to
€286.0M due to 11% more flight hours, the
consolidation of Lauda (only consolidated in late August 2018),
higher crewing ratios and the annualisation of pilot pay
increases.
Route
charges rose 1% to
€216.3M due to a 10% increase in sectors, offset by a
decrease in unit rates.
Depreciation
is 15% higher at
€188.2M due to the 29 additional B737 owned aircraft
in the fleet at period end, the purchase of spare engines and
simulators and the impact of IFRS16 (€15.3M), adopted from
April 1, 2019.
Marketing,
distribution and
other:
Marketing,
distribution and is flat at €154.5M due to lower EU261
compensation costs.
Maintenance,
materials and
repairs:
Maintenance,
materials and repairs increased by 42% to €69.1M due to higher
scheduled maintenance due to an ageing fleet and MAX delivery
delays, costs associated with the hand back of Airbus aircraft and
maintenance provisions for 11 additional A320 operating
leases.
Aircraft rentals:
Aircraft
rentals fell by 37% to
€12.8M due to fewer leased B737 aircraft in the fleet
compared to the same period last year (FY20 26, FY19 28) and the
adoption of IFRS16 which is offset by higher
depreciation.
Unit cost per pax rose by 3% (excluding fuel they fell by
1%).
Net
finance decreased by 9% at
€13.1M primarily due to higher interest rates achieved
on deposits and the re-financing of debt at lower interest rates.
IFRS16 had a negative €1.6M impact in the
quarter.
Ryanair
Holdings plc and Subsidiaries
Interim
Management Report
Introduction
This
financial report for the half-year ended September 30, 2019 meets
the reporting requirements pursuant to the Transparency (Directive
2004/109/EC) Regulations 2007 and Transparency Rules of the Central
Bank of Ireland.
This
interim management report includes the following:
●
Principal risks and
uncertainties relating to the remaining six months of the
year;
●
Related party
transactions; and
●
Post balance sheet
events.
Results
of operations for the six-month period ended September 30, 2019
compared to the six month period ended September 30, 2018,
including important events that occurred during the half-year, are
set forth above in the MD&A.
Principal risks and uncertainties for the remainder of the
year
Among
the factors that are subject to change and could significantly
impact Ryanair’s expected results for the remainder of the
year are the airline pricing environment, capacity growth in
Europe, fuel costs, competition from new and existing carriers,
market prices for the replacement of aircraft, costs associated
with environmental, safety and security measures, actions of the
Irish, UK, European Union (“EU”) and other governments
and their respective regulatory agencies, delays in the delivery of
contracted aircraft, weather related disruptions, ATC strikes and
staffing related disruptions, uncertainties surrounding Brexit,
fluctuations in currency exchange rates and interest rates, airport
access and charges, labour relations, the economic environment of
the airline industry, the general economic environment in Ireland,
the UK, and Continental Europe, the general willingness of
passengers to travel, other economic, social and political factors
and unforeseen security events.
Board of Directors
Details
of the members of our Board of Directors are set forth on pages 111
and 112 of our 2019 annual report.
Related party transactions – Please see note 14.
Post balance sheet events – Please see note 15.
Going concern
Having
considered the Group’s principal risks and uncertainties and
its financial position and cash flows, the Directors have formed a
judgement, at the time of approving the interim financial
statements, that there is a reasonable expectation that the Company
and the Group as a whole have adequate resources to continue in
operational existence for a period of at least twelve months from
the date of approval of the interim financial statements. For this
reason, they continue to adopt the going concern basis in preparing
the interim financial statements.
Ryanair
Holdings plc and Subsidiaries
Notes
forming Part of the Condensed Consolidated
Interim Financial Statements
1. Basis
of preparation and significant accounting policies
Ryanair
Holdings plc (the “Company”) is a company domiciled in
Ireland. The unaudited condensed consolidated interim financial
statements of the Company for the half-year ended September 30,
2019 comprise the Company and its subsidiaries (together referred
to as the “Group”).
These
unaudited condensed consolidated interim financial statements
(“the interim financial statements”), which should be
read in conjunction with our 2019 Annual Report for the year ended
March 31, 2019, have been prepared in accordance with International
Accounting Standard No. 34 “Interim Financial Reporting” as
adopted by the EU (“IAS 34”). They do not include all
of the information required for full annual financial statements,
and should be read in conjunction with the most recent published
consolidated financial statements of the Group. The consolidated
financial statements of the Group as at and for the year ended
March 31, 2019, are available at http://investor.ryanair.com/.
The
September 30, 2019 figures and the September 30, 2018 comparative
figures do not constitute statutory financial statements of the
Group within the meaning of the Companies Act, 2014. The
consolidated financial statements of the Group for the year ended
March 31, 2019, together with the independent auditor’s
report thereon, were filed with the Irish Registrar of Companies
following the Company’s Annual General Meeting and are also
available on the Company’s Website. The auditor’s
report on those financial statements was unqualified.
The
Audit Committee, upon delegation of authority by the Board of
Directors, approved the condensed consolidated interim financial
statements for the half-year ended September 30, 2019 on November
1, 2019.
Except
as stated otherwise below, this period’s financial
information has been prepared in accordance with the accounting
policies set out in the Group’s most recent published
consolidated financial statements, which were prepared in
accordance with IFRS as adopted by the EU and also in compliance
with IFRS as issued by the International Accounting Standards Board
(IASB).
Reclassifications
To
ensure consistency in the presentation of the condensed
consolidated interim balance sheet, the Company has reclassified
€102.9M in provisions from non-current liabilities to current
liabilities in the prior period (at March 31, 2019).
Accounting for assets held for sale
Non-current
assets are classified as held-for sale if it is highly probable
that they will be recovered primarily through sale rather than
through continuing use. Such assets are generally measured at the
lower of their carrying amount and fair value less costs to sell.
Impairment losses on initial classification as held-for-sale or
held-for distribution and subsequent gains and losses on
re-measurement are recognised in the income statement. Once
classified as held-for-sale, intangible assets and property, plant
and equipment are no longer amortised or depreciated, and any
equity-accounted investee is no longer equity
accounted.
New IFRS standards and amendments adopted during the
year
The
following new and amended IFRS standards, amendments and IFRIC
interpretations, have been issued by the IASB, and have also been
endorsed by the EU. These standards are effective for the first
time for the Group’s financial year beginning on April 1,
2019 and therefore have been applied by the Group in these
condensed consolidated interim financial statements:
●
IFRS 16 - Leases
(see below)
●
Amendments to IFRS
9 – Prepayment Features with Negative
Compensation
●
IFRIC 23 -
Uncertainty over Income Tax Treatments
●
Amendments to IAS
28 - Long-term Interests in Associates and Joint
Ventures
●
Amendments to IAS
19 - Plan Amendment, Curtailment or Settlement
●
Annual Improvements
to IFRS Standards 2015 - 2017 Cycle - various
standards
With
the exception of IFRS 16, the adoption of these new or amended
standards did not have a material impact on the Group’s
financial position or results from operations in the half-year
ended September 30, 2019. The impact of adoption of IFRS 16 is set
out below.
IFRS 16 – Leases
The
Group has adopted IFRS 16 with effect from April 1, 2019. IFRS 16
introduces a single, on-balance sheet, lease accounting model for
lessees. A lessee recognises a right-of-use asset representing its
right to use the underlying asset and a lease liability
representing its obligation to make lease payments.
The
Group has applied IFRS 16 using the modified retrospective
approach, under which the cumulative effect of initial application
is recognised in retained earnings at April 1, 2019. Accordingly,
the comparative information presented for 2018 has not been
restated – i.e. it is presented, as previously reported,
under IAS 17 and related interpretations. The details of the
changes in accounting policies are disclosed below.
As a
lessee, the Group previously classified leases as operating or
finance leases based on its assessment of whether the lease
transferred substantially all of the risks and rewards of
ownership. Under IFRS 16, the Group recognises right-of-use assets
and lease liabilities for most leases – i.e. these leases are
on-balance sheet.
The
Group has elected not to recognise right-of-use assets and lease
liabilities for some leases of low-value assets and has applied the
exemption not to recognise right-of-use assets and liabilities for
leases with less than 12 months of lease term.
The
Group recognises a right-of-use asset and a lease liability at the
lease commencement date. The right-of-use asset is initially
measured at cost, and subsequently at cost less any accumulated
depreciation and impairment losses, and adjusted for certain
re-measurements of the lease liability. The lease liability is
initially measured at the present value of the lease payments that
are not paid at the commencement date, discounted using the
interest rate implicit in the lease or, if that rate cannot be
readily determined, the Group’s incremental borrowing rate.
Generally, the Group uses its incremental borrowing rate as the
discount rate.
The
Group has determined the lease term for some lease contracts in
which it is a lessee that include renewal options. The assessment
of whether the Group is reasonably certain to exercise such options
impacts the lease term, which significantly affects the amount of
lease liabilities and right-of-use assets recognised. As at
September 30, 2019, the Group’s right-of-use assets relate to
leased aircraft.
The
impact of the IFRS 16 transition increased non-current assets on
April 1, 2019 by €130M, increased liabilities by €140M
and reduced equity (distributable reserves) by
€10M.
When
measuring lease liabilities for leases that were previously
classified as operating leased, the Group has discounted lease
payments using its incremental borrowing rate at April 1, 2019. The
discount rate applied for all leases ranged between 2.5% -
3.5%.
Impact
of IFRS 16 in the half-year period:
During
the half-year ended September 30, 2019 non-current assets increased
by €81.2M (net) and liabilities increased by €86.7M
(net) due to the addition of 11 leased aircraft to the
fleet.
The
Group has recognised depreciation and interest expenses instead of
operating lease expenses in relation to those leases under IFRS 16.
During the half-year ended September 30, 2019, the Group recognised
€27.3M of depreciation expense and €2.6M of lease
interest expenses from these leases in the condensed consolidated
interim income statement.
New IFRS standards and amendments issued but not yet
effective
The
following new or revised IFRS standards and IFRIC interpretations
will be adopted for the purposes of the preparation of future
financial statements, where applicable. While under review, we do
not anticipate that the adoption of the other new or revised
standards and interpretations will have a material impact on our
financial position or results from operations:
●
Amendments to
References to Conceptual Framework in IFRS Standards (effective for
fiscal periods beginning on or after January 1, 2020)*
●
Amendments to IFRS
3 - Definition of a Business (effective for fiscal periods
beginning on or after January 1, 2020)*
●
Amendments to IAS 1
and IAS 8 - Definition of Material (effective for fiscal periods
beginning on or after January 1, 2020)*
●
IFRS 17 - Insurance
Contracts (effective for fiscal periods beginning on or after
January 1, 2021)*
●
Interest Rate
Benchmark Reform (Amendments to IFRS 9, IAS 39 and IFRS
7)*
*These
standards or amendments to standards are not as yet EU
endorsed
2. Judgements
and estimates
The
preparation of financial statements requires management to make
judgements, estimates and assumptions that affect the application
of accounting policies and the reported amounts of assets and
liabilities, income and expense. Actual results may differ from
these estimates.
In
preparing these condensed consolidated interim financial
statements, the significant judgements made by management in
applying the Group’s accounting policies and the key sources
of estimation uncertainty were the same as those that applied in
the most recent published consolidated financial
statements.
3. Seasonality
of operations
The
Group’s results of operations have varied significantly from
quarter to quarter, and management expects these variations to
continue. Among the factors causing these variations are the
airline industry’s sensitivity to general economic conditions
and the seasonal nature of air travel. Accordingly, the first
half-year typically results in higher revenues and
results.
4. Income
tax
The
Group’s consolidated effective tax rate in respect of
operations for the half-year ended September 30, 2019 was 8.5%
(September 30, 2018: 8.9%). The tax charge for the half-year ended
September 30, 2019 of €106.8M (September 30, 2018:
€112.8M) comprises a current tax charge of €139.5M and
a deferred tax credit of €32.7M primarily relating to the
temporary differences for property, plant and equipment and net
operating losses.
5. Share
based payments
The
terms and conditions of the share option programme are disclosed in
the most recent, published, consolidated financial statements. The
charge of €4.0M in the half-year ended September 30, 2019
(September 30, 2018: €5.0M) is the fair value of options
granted in prior periods, which is being recognised within the
income statement in accordance with employee services rendered.
During the period 0.6M ordinary shares were issued at a strike
price of €6.25 per share following the exercise of vested
options under the 2013 options plan.
6. Contingencies
The
Group is engaged in litigation arising in the ordinary course of
its business. The Group does not believe that any such litigation
will individually, or in aggregate, have a material adverse effect
on the financial condition of the Group. Should the Group be
unsuccessful in these litigation actions, management believes the
possible liabilities then arising cannot be determined but are not
expected to materially adversely affect the Group’s results
of operations or financial position.
7. Capital
commitments
At
September 30, 2019 the Group had an operating fleet of 455 (2018:
451) Boeing 737 and 21 (2018: 9) Airbus A320 aircraft. The Group
has agreed to purchase up to 210 (135 firm and 75 options) Boeing
737-MAX-200 aircraft from the Boeing Corporation during the periods
FY20 to FY24.
8. Analysis
of operating segment
The
Group determines and presents operating segments based on the
information that internally is provided to the Group CEO, who is
the Company’s Chief Operating Decision Maker (CODM). There
have been no changes to the basis of segmentation or the
measurement basis for the segment profit or loss since the prior
year. The intent to create a new Group structure was announced in
February 2019. The Group currently comprises four separate
airlines, Buzz, Lauda, Malta Air (established in June 2019) and
Ryanair DAC. While good progress has been made in developing
our Group airlines, we have not yet finalised the operational
structures, the basis of allocation of capital and resources and
the form and content of reporting of performance.
Accordingly
the Group remained managed as a single business unit and is
reported as a single reportable segment. We expect the
implementation of the group structure will be finalised in the
coming months, at which stage the basis of segmentation will be
reviewed and updated, where necessary, in our March 31, 2020 Annual
Report.
The
CODM assessed the performance of the business based on the
profit/(loss) after tax of the Group for the
half-year.
|
Reportable segment information is presented as
follows:
|
|
|
|
|
|
|
|
|
|
Half-Year
|
Year
|
|
|
Ended
|
Ended
|
|
|
Sep 30, 2019
|
Sep 30, 2018
|
|
|
€M
|
€M
|
|
Revenues
|
5,389.6
|
4,838.0
|
|
Profit after tax
|
1,152.7
|
1,150.7
|
|
|
|
|
|
|
Total
|
Total
|
|
|
At Sep 30, 2019
€M
|
At Mar 31, 2019
€M
|
|
Reportable segment assets
|
14,742.8
|
13,250.7
|
|
Reportable segment liabilities
|
8,385.9
|
8,035.8
|
The
Company has two main categories of revenue, scheduled revenues and
ancillary revenues. The split of revenues between these two
categories is as shown on the face of the consolidated condensed
interim income statement.
|
|
|
Half-Year
|
Half-Year
|
Quarter
|
Quarter
|
|
|
|
|
Ended
|
Ended
|
Ended
|
Ended
|
|
|
|
|
Sep 30,
|
Sep 30,
|
Jun 30,
|
Jun 30,
|
|
|
|
|
2019
|
2018
|
2019
|
2018
|
|
|
|
|
|
|
|
|
|
|
Basic earnings per ordinary share (€)
|
|
1.0247
|
0.9974
|
0.8139
|
0.7345
|
|
|
Diluted earnings per ordinary share (€)
|
|
1.0204
|
0.9892
|
0.8107
|
0.7291
|
|
|
Weighted average number of ordinary shares (in M’s) –
basic
|
|
1,124.9
|
1,153.7
|
1,118.3
|
1,145.7
|
|
|
Weighted average number of ordinary shares (in M’s) –
diluted
|
|
1,129.7
|
1,163.5
|
1,122.7
|
1,154.1
|
|
Diluted
earnings per share takes account of the potential future exercises
of share options granted under the Company’s share option
schemes and the weighted average number of shares includes weighted
average share options assumed to be converted of €4.8M (2018:
€9.6M).
10.
Property,
plant and equipment
Acquisitions and disposals
Capital
expenditure in the half-year ended September 30, 2019 amounted to
€608.2M and primarily relates to aircraft deposits, spare
engines, simulators and heavy maintenance checks.
In
August 2019, the Company entered into an agreement to sell 10
Boeing 737-800 aircraft for delivery in FY20 and FY21. Accordingly,
these aircraft are presented as assets held for sale as at
September 30, 2019 and are stated at the lower of their carrying
amount and fair value less costs to sell.
12.
Financial
instruments and financial risk management
The
Group is exposed to various financial risks arising in the normal
course of business. The Group’s financial risk exposures are
predominantly related to commodity price, foreign exchange and
interest rate risks. The Group uses financial instruments to manage
exposures arising from these risks.
These
interim financial statements do not include all financial risk
management information and disclosures required in the annual
financial statements, and should be read in conjunction with the
2019 Annual Report. There have been no changes in our risk
management policies in the year.
Fair value hierarchy
Financial
instruments measured at fair value in the balance sheet are
categorised by the type of valuation method used. The different
valuation levels are defined as follows:
● Level 1: quoted
prices (unadjusted) in active markets for identical assets or
liabilities that the Group can access at the measurement
date.
● Level 2: inputs
other than quoted prices included within Level 1 that are
observable for that asset or liability, either directly or
indirectly.
● Level 3:
significant unobservable inputs for the asset or
liability.
Fair value estimation
Fair
value is the price that would be received to sell an asset, or paid
to transfer a liability, in an orderly transaction between market
participants at the measurement date. The following methods and
assumptions were used to estimate the fair value of each material
class of the Group’s financial instruments:
Financial instruments measured at fair value
● Derivatives – interest rate swaps:
Discounted cash flow analyses have been used to determine the fair
value, taking into account current market inputs and rates. (Level
2)
● Derivatives – currency forwards and
aircraft fuel contracts: A comparison of the contracted rate
to the market rate for contracts providing a similar risk profile
at September 30, 2019 has been used to establish fair value. (Level
2)
The
Group policy is to recognise any transfers between levels of the
fair value hierarchy as of the end of the reporting period during
which the transfer occurred. During the half-year ended September
30, 2019, there were no reclassifications of financial instruments
and no transfers between levels of the fair value hierarchy used in
measuring the fair value of financial instruments.
Financial instruments not measured at fair value
● Long-term debt: The repayments which
Ryanair is committed to make have been discounted at the relevant
market rates of interest applicable (including credit spreads) at
September 30, 2019 to arrive at a fair value representing the
amount payable to a third party to assume the
obligations.
There
were no significant changes in the business or economic
circumstances during the half-year ended September 30, 2019 that
affect the fair value of our financial assets and financial
liabilities.
The
fair value of financial assets and financial liabilities, together
with the carrying amounts in the condensed consolidated financial
balance sheet, are as follows:
|
|
|
|
|
|
|
|
At Sep 30,
|
At Sep 30,
|
At Mar
31,
|
At Mar
31,
|
|
|
2019
|
2019
|
2019
|
2019
|
|
|
Carrying
|
Fair
|
Carrying
|
Fair
|
|
|
Amount
|
Value
|
Amount
|
Value
|
|
Non-current financial assets
|
€M
|
€M
|
€M
|
€M
|
|
Derivative
financial instruments:-
|
|
|
|
|
|
- U.S.
dollar currency forward contracts
|
360.3
|
360.3
|
220.7
|
220.7
|
|
- Jet
fuel derivative contracts
|
5.0
|
5.0
|
4.5
|
4.5
|
|
-
Interest rate swaps
|
-
|
-
|
2.3
|
2.3
|
|
|
365.3
|
365.3
|
227.5
|
227.5
|
|
Current financial assets
|
|
|
|
|
|
Derivative
financial instruments:-
|
|
|
|
|
|
- U.S.
dollar currency forward contracts
|
387.4
|
387.4
|
307.0
|
307.0
|
|
-
Interest rate swaps
|
2.2
|
2.2
|
1.7
|
1.7
|
|
|
389.6
|
389.6
|
308.7
|
308.7
|
|
Trade
receivables*
|
75.6
|
|
59.5
|
|
|
Cash
and cash equivalents*
|
2,118.2
|
|
1,675.6
|
|
|
Financial
asset: cash > 3 months*
|
1,779.9
|
|
1,484.4
|
|
|
Restricted
cash*
|
34.4
|
|
34.9
|
|
|
Other
assets*
|
1.1
|
|
0.8
|
|
|
|
4,398.8
|
389.6
|
3,563.9
|
308.7
|
|
Total
financial assets
|
4,764.1
|
754.9
|
3,791.4
|
536.2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
At Sep 30,
|
At
Sep 30,
|
At Mar
31,
|
At Mar
31,
|
|
|
2019
|
2019
|
2019
|
2019
|
|
|
Carrying
|
Fair
|
Carrying
|
Fair
|
|
|
Amount
|
Value
|
Amount
|
Value
|
|
Non-current
financial liabilities
|
€M
|
€M
|
€M
|
€M
|
|
Derivative
financial instruments:-
|
|
|
|
|
|
- U.S.
dollar currency forward contracts
|
1.3
|
1.3
|
8.0
|
8.0
|
|
- Jet
fuel contracts
|
5.9
|
5.9
|
-
|
-
|
|
|
7.2
|
7.2
|
8.0
|
8.0
|
|
Long-term
debt
|
1,459.5
|
1,472.1
|
892.8
|
906.8
|
|
Bonds
|
2,443.4
|
2,525.6
|
2,442.2
|
2,509.1
|
|
|
3,910.1
|
4,004.9
|
3,343.0
|
3,423.9
|
|
Current financial liabilities
|
|
|
|
|
|
Derivative
financial instruments:-
|
|
|
|
|
|
- Jet
fuel & carbon derivative contracts
|
157.4
|
157.4
|
189.7
|
189.7
|
|
- U.S.
dollar currency forward contracts
|
0.8
|
0.8
|
-
|
-
|
|
|
158.2
|
158.2
|
189.7
|
189.7
|
|
Current
maturities of debt
|
262.4
|
262.4
|
309.4
|
309.4
|
|
Trade
payables*
|
1,016.5
|
|
573.8
|
|
|
Accrued
expenses*
|
343.4
|
|
320.8
|
|
|
|
1,780.5
|
420.6
|
1,393.7
|
499.1
|
|
Total
financial liabilities
|
5,690.6
|
4,425.5
|
4,736.7
|
3,923.0
|
*The fair value of these financial instruments approximate their
carrying values due to the short-term nature of the
instruments.
In the
half-year ended September 30, 2019 the Company bought back 21.8M
ordinary shares at a total cost of €226.0M. This buy-back was
equivalent to approximately 2% of the Company’s issued share
capital at March 31, 2019. All of these ordinary shares
repurchased were cancelled.
In FY19
the Company bought back 37.8M shares at a total cost of
€561.0M. This buy-back was equivalent to approximately 3.2%
of the Company’s issued share capital at March 31,
2018. All of these repurchased ordinary shares were cancelled
at March 31, 2019.
As a
result of the share buybacks in the half-year ended September 30,
2019, share capital decreased by 21.8M ordinary shares (37.8M
ordinary shares in the year ended March 31, 2019) with a nominal
value of €0.1M (€0.2M in the year ended March 31, 2019)
and the other undenominated capital reserve increased by a
corresponding €0.1M (€0.2M in the year ended March 31,
2019). The other undenominated capital reserve is required to be
created under Irish law to preserve permanent capital in the Parent
Company.
14.
Related
party transactions
The
Company’s related parties comprise its subsidiaries,
Directors and senior key management personnel. All transactions
with subsidiaries eliminate on consolidation and are not
disclosed.
There
were no related party transactions in the half-year ended September
30, 2019 that materially affected the financial position or the
performance of the Group during that period and there were no
changes in the related party transactions described in the 2019
Annual Report that could have a material effect on the financial
position or performance of the Group in the same
period.
15.
Post
balance sheet events
Between
October 1, 2019 and October 31, 2019 the Company bought back 2.2M
ordinary shares at a total cost of €25.1M under its
€700M share buy-back which commenced in May 2019. This was
equivalent to 0.2% of the Company’s issued share capital at
September 30, 2019. All ordinary shares re-purchased are
cancelled.
Ryanair
Holdings plc and Subsidiaries
Responsibility
Statement
Statement of the Directors in respect of the interim financial
report
The
Directors are responsible for preparing the half-yearly financial
report in accordance with the Transparency (Directive 2004/109/EC)
Regulations 2007 (“Transparency Directive”), and the
Transparency Rules of the Central Bank of Ireland.
In
preparing the condensed set of consolidated interim financial
statements included within the half-yearly financial report, the
Directors are required to:
●
prepare and present
the condensed set of financial statements in accordance with IAS 34
Interim Financial Reporting as adopted by the EU, the Transparency
Directive and the Transparency Rules of the Central Bank of
Ireland;
●
ensure the
condensed set of financial statements has adequate
disclosures;
●
select and apply
appropriate accounting policies; and
●
make accounting
estimates that are reasonable in the circumstances.
The
Directors are responsible for designing, implementing and
maintaining such internal controls as they determine is necessary
to enable the preparation of the condensed set of financial
statements that is free from material misstatement whether due to
fraud or error.
We
confirm that to the best of our knowledge:
(1)
the condensed set
of consolidated interim financial statements included within the
half-yearly financial report of Ryanair Holdings plc for the six
months ended September 30, 2019 (“the interim financial
information”) which comprises the condensed consolidated
interim balance sheet, the condensed consolidated interim income
statement, the condensed consolidated interim statement of
comprehensive income, the condensed consolidated interim statement
of cash flows and the condensed consolidated interim statement of
changes in shareholders’ equity and the related explanatory
notes, have been presented and prepared in accordance with IAS 34,
Interim Financial Reporting, as adopted by the EU, the Transparency
Directive and Transparency Rules of the Central Bank of
Ireland.
(2)
The interim
financial information presented, as required by the Transparency
Directive, includes:
a.
an indication of
important events that have occurred during the first 6 months of
the financial year, and their impact on the condensed set of
consolidated interim financial statements;
b.
a description of
the principal risks and uncertainties for the remaining 6 months of
the financial year
c.
related
parties’ transactions that have taken place in the first 6
months of the current financial year and that have materially
affected the financial position or the performance of the
enterprise during that period; and
d.
any changes in the
related parties’ transactions described in the last annual
report that could have a material effect on the financial position
or performance of the enterprise in the first 6 months of the
current financial year.
On
behalf of the Board
David
Bonderman
Michael
O’Leary
November
1, 2019
Independent review report to Ryanair Holdings plc and
Subsidiaries
Introduction
We have
been engaged by the Company to review the condensed set of
consolidated interim financial statements in the half-yearly
financial report for the six months ended September 30, 2019 which
comprises the condensed consolidated interim balance sheet, the
condensed consolidated interim income statement, the condensed
consolidated interim statement of comprehensive income, the
condensed consolidated interim statement of cash flows, and the
condensed consolidated interim statement of changes in
shareholders’ equity and the related explanatory notes. Our
review was conducted having regard to the Financial Reporting
Council’s (“FRCs”) International Standard on
Review Engagements (“ISRE”) (UK and Ireland) 2410,
‘Review of Interim Financial
Information Performed by the Independent Auditor of the
Entity’.
Conclusion
Based
on our review, nothing has come to our attention that causes us to
believe that the condensed set of consolidated interim financial
statements in the half-yearly report for the six months ended
September 30, 2019 is not prepared in accordance with IAS 34
‘Interim Financial
Reporting’ as adopted by the EU, the Transparency
(Directive 2004/109/EC) Regulations 2007 (“Transparency
Directive”), and the Transparency Rules of the Central Bank
of Ireland.
Directors’ responsibilities
The
half-yearly financial report is the responsibility of, and has been
approved by, the Directors. The Directors are responsible for
preparing the half-yearly financial report in accordance with the
Transparency Directive and the Transparency Rules of the Central
Bank of Ireland. As disclosed in note 1, the annual financial
statements of the Company are prepared in accordance
with International
Financial Reporting Standards as issued by the International
Accounting Standards Board and as adopted by the EU. The Directors
are responsible for ensuring that the condensed set of consolidated
interim financial statements included in this half-yearly financial
report has been prepared in accordance with IAS 34
‘Interim Financial
Reporting’ as adopted by the EU.
Our responsibility
Our
responsibility is to express to the Company a conclusion on the
condensed set of consolidated interim financial statements in the
half-yearly financial report based on our review.
Scope of review
We
conducted our review having regard to the Financial Reporting
Council’s International Standard on Review Engagements (UK
and Ireland) 2410 Review of
Interim Financial Information Performed by the Independent Auditor
of the Entity. A review of interim financial information
consists of making enquiries, primarily of persons responsible for
financial and accounting matters, and applying analytical and other
review procedures. A review is substantially less in scope than an
audit conducted in accordance with International Standards on
Auditing (Ireland) and consequently does not enable us to obtain
assurance that we would become aware of all significant matters
that might be identified in an audit. Accordingly, we do not
express an audit opinion.
We read
the other information contained in the half-yearly financial report
to identify material inconsistencies with the information in the
condensed set of consolidated interim financial statements and to
identify any information that is apparently materially incorrect
based on, or materially inconsistent with, the knowledge acquired
by us in the course of performing the review. If we become aware of
any apparent material misstatements or inconsistencies we consider
the implications for our report.
The purpose of our review work and to whom we owe our
responsibilities
This
report is made solely to the Company in accordance with the terms
of our engagement to assist the Company in meeting the requirements
of the Transparency Directive and the Transparency Rules of the
Central Bank of Ireland. Our review has been undertaken so that we
might state to the Company those matters we are required to state
to it in this report and for no other purpose. To the fullest
extent permitted by law, we do not accept or assume responsibility
to anyone other than the company for our review work, for this
report, or for the conclusions we have reached.
Emer
McGrath
November 1,
2019
For and
on behalf of
KPMG
Chartered Accountants
1
Stokes Place,
St
Stephen’s Green,
Dublin
2,
Ireland
SIGNATURES
Pursuant
to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf
by the undersigned, hereunto duly authorized.
Date: 04
November, 2019
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By:___/s/
Juliusz Komorek____
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Juliusz
Komorek
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Company
Secretary
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