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 February
2020
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 Q3 NET PROFIT OF €88M
DUE TO STRONGER CHRISTMAS/NEW YEAR TRAFFIC.
Ryanair Holdings plc today (3 Feb.) reported a Q3 profit of
€88m, compared to a €66m loss in the same quarter last
year. Highlights include:
●
Traffic
grew 6% to 36m guests.
●
Revenue
per guest rose 13% (9% higher fares; ancillary rev. up
21%).
●
Over
90% of flights arrived on-time (excl. ATC delays).
●
111
new routes announced for S.20.
●
Director
of Sustainability appointed to drive our Environmental
Policy.
●
Over
€440m returned to shareholders under €700m buyback
programme.
Q3 (IFRS) - Group
|
31 Dec. 2018
|
31 Dec. 2019
|
Change
|
Guests
|
33.8m
|
35.9m
|
+6%
|
Load
Factor
|
95%
|
96%
|
+1pt
|
Revenue
|
€1.58bn
|
€1.91bn
|
+21%
|
(Net
loss)/PAT
|
(€66m)
|
€88m
|
-
|
Basic
EPS
|
(€0.06)
|
+€0.08
|
-
|
EUROPE'S GREENEST, CLEANEST AIRLINE:
The future of our planet is of vital importance to our customers
and all 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 other major EU airlines. In Dec. 2019, Ryanair
appointed a Director of Sustainability to deliver the Group's
ambitious sustainability targets.
Ryanair operates the youngest fleet, with the highest load factors,
and newer more fuel-efficient engines. Our Environmental Policy
commits us to:
●
Be
plastic free in 5 years;
●
Cut
noise emissions by up to 40% per seat;
●
Cut
CO₂ emissions by 10% by 2030 (up to 50% lower than other
major EU airlines);
●
Encourage
guests to support our voluntary carbon offset
programme;
●
Work
with environmental partners to improve our environment in
Europe.
While aviation generates just 2% of Europe's CO₂, our
industry must work harder to further cut these low emissions. EU
airlines already pay excessive environmental taxes - Ryanair will
pay over €630m in such taxes this year. For further info.
click here: www.ryanair.com/environment.
BUSINESS REVIEW:
Revenues
Sales grew 21% to €1.91bn. Better than expected
Christmas and New Year bookings, at higher fares, led to a 16%
increase in Scheduled Revenue to €1.19bn as we carried 36m
guests at 9% higher fares. Ancillary Revenue increased by 28% to
€0.72bn as more guests choose Priority Boarding and Preferred
Seat services. In Oct., Ryanair Labs launched a new digital
platform with improved, personalised, guest offers. Labs are now
focused on improving penetration across key ancillary products over
the coming quarters. Rentalcars.com became our new car hire partner
in late 2019 and will help grow car hire penetration and revenue
over the next 3 years.
Costs
Our fuel bill rose 14% (+€83m) to €0.7bn due to higher
prices and 6% traffic growth. Ex-fuel unit costs rose by 1% due to
higher staff (increased pilot pay, higher crew ratios as pilot
resignations have slowed to almost zero) and maintenance costs
(older aircraft longer in the fleet due to the Boeing MAX delivery
delays), offset by falling EU261 costs due to improved punctuality.
Our fuel is 90% hedged for FY20 at $71bbl and 90% of our FY21 fuel
is now hedged at $61bbl, delivering over €100m fuel savings
into FY21. We continue to negotiate attractive growth deals as
airports compete to win Ryanair's very limited traffic
growth.
Group Airlines
The Group airlines continue to grow. In Q3 Buzz increased its fleet
to 32 B737s and expanded outside Poland with new bases in Prague
and Budapest. Buzz will grow its fleet to 50 B737s for S.20, with 7
aircraft in Polish charter operations and 43 operating scheduled
flying for Ryanair.
Lauda continues to underperform with fares much lower than
expected, despite strong traffic growth and high load factors. As
announced on 10 Jan., this is a direct result of intense price
competition with Lufthansa subsidiaries in both Germany and
Austria. While Lauda will now carry 6.5m guests in FY20, average
fares are well below those of other Group airlines. Lauda's
management is implementing a new cost cutting plan and is improving
penetration on ancillary products. Lauda will grow its fleet from
23 to 38 A320s by S.20 with increased capacity in Vienna and a new
base in Zadar.
Malta Air continues to grow strongly and has taken over the Group's
French, German, Italian and Maltese bases. Its fleet will grow to
120 aircraft by S.20.
Ryanair DAC saw its fleet reduced to 360 B737s in Q3 as both Buzz
and Malta Air took over more flight operations for the Group.
Armenia became the newest destination in Jan. Regrettably the
Boeing MAX delivery delays mean that Ryanair DAC had to close a
number of loss-making winter bases leading to some crew
redundancies in Spain, Germany and Sweden. We have endeavoured to
minimise job losses through base transfers & seasonal bases and
continue to work with our people, their unions and our airports to
finalise this process.
Boeing MAX update
Delivery of the Group's first Boeing 737-MAX-200 aircraft has been
repeatedly delayed from Q2 2019. It is now likely that our first
MAX aircraft will not deliver until Sept. or Oct. 2020. The
requirement for MAX simulator training will also slow down the
delivery of backlogged aircraft and new deliveries. But we believe
that these "gamechanger" aircraft (with 4% more seats, burn 16%
less fuel), when delivered, will transform our cost base and our
business for the next decade. Due to these delivery delays, we
won't see any of these cost savings until late FY21. As a direct
result of these delivery delays, we plan to extend our 200m p.a.
passenger target by at least one or two years to FY25 or
FY26.
Balance Sheet & Shareholder Returns
Ryanair's BBB+ rated balance sheet is one of the strongest in the
industry. 70% of our aircraft are debt free. This allows us to grow
while weaker airlines collapse, sell or retrench in the current
challenging market. We have returned €440m to shareholders
under our current €700m share buyback programme. Despite the
share buyback and the impact of IFRS 16 (€230m), net debt was
just over €700m at period end. Due to the uncertainty
surrounding the Boeing MAX aircraft deliveries, peak Capex and
maturing bonds in 2021, the Board has decided to extend the current
€700m buyback programme until the end of July.
Outlook
As announced on 10 Jan., Ryanair's
FY20 PAT guidance has risen to a range of €0.95bn to
€1.05bn thanks to stronger Christmas and New Year travel
bookings, at better than expected fares. Q4 forward bookings are 1%
ahead of this time last year at slightly better than expected
average fares and we now expect full year traffic to grow by 8% to
154m guests. Ancillary revenues continue to grow, but at a slower
rate having annualised the cabin bag changes in Nov. This will
support full-year revenue per guest growth of between +3% to +4%.
The full year fuel bill will rise by €440m and ex-fuel unit
costs will increase by approx. 2%. On the basis of current trading,
Ryanair expects to finish close to the mid-point of the new PAT
guidance range. This guidance is heavily dependent on
close-in Q4 fares 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 154m
guests p.a. on more than 2,400 daily flights from 82 bases, the
group connects over 200 destinations in 40 countries on a fleet of
over 470 aircraft, with a further 210 Boeing 737s on order, which
will enable the Ryanair Group to lower fares and grow traffic to
200m p.a. by FY25. 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 December 31,
2019 (unaudited)
|
|
At Dec 31,
|
At Mar 31,
|
|
|
2019
|
2019
|
|
Note
|
€M
|
€M
|
Non-current assets
|
|
|
|
Property,
plant and equipment
|
10
|
9,777.3
|
9,029.6
|
Right-of-use-asset
|
1
|
224.4
|
-
|
Intangible
assets
|
|
146.4
|
146.4
|
Derivative
financial instruments
|
12
|
255.8
|
227.5
|
Deferred
tax
|
4
|
88.7
|
43.2
|
Total non-current assets
|
|
10,492.6
|
9,446.7
|
|
|
|
|
|
Current assets
|
|
|
|
Inventories
|
|
5.1
|
2.9
|
Other
assets
|
|
296.4
|
238.0
|
Assets
held for sale
|
11
|
98.7
|
-
|
Trade
receivables
|
|
74.6
|
59.5
|
Derivative
financial instruments
|
12
|
281.6
|
308.7
|
Restricted
cash
|
|
34.4
|
34.9
|
Financial
assets: cash > 3 months
|
|
1,421.0
|
1,484.4
|
Cash
and cash equivalents
|
|
2,156.6
|
1,675.6
|
Total current assets
|
|
4,368.4
|
3,804.0
|
|
|
|
|
|
Total assets
|
|
14,861.0
|
13,250.7
|
|
|
|
|
|
Current liabilities
|
|
|
|
Provisions
|
|
54.6
|
-
|
Trade
payables
|
|
1,601.8
|
573.8
|
Accrued
expenses and other liabilities
|
|
1,963.1
|
2,992.1
|
Current
lease liability
|
1
|
71.6
|
-
|
Current
maturities of debt
|
|
255.3
|
309.4
|
Derivative
financial instruments
|
12
|
16.4
|
189.7
|
Current
tax
|
4
|
101.5
|
31.6
|
Total current liabilities
|
|
4,064.3
|
4,096.6
|
|
|
|
|
Non-current liabilities
|
|
|
|
Provisions
|
|
54.4
|
135.6
|
Derivative
financial
instruments
|
12
|
5.7
|
8.0
|
Deferred
tax
|
4
|
482.7
|
460.6
|
Non-current
lease liability
|
1
|
159.3
|
-
|
Non-current
maturities of debt
|
|
3,836.9
|
3,335.0
|
Total non-current liabilities
|
|
4,539.0
|
3,939.2
|
|
|
|
|
|
Shareholders' equity
|
|
|
|
Issued
share capital
|
13
|
6.6
|
6.8
|
Share
premium account
|
|
731.4
|
719.4
|
Other
undenominated capital
|
13
|
3.4
|
3.2
|
Retained
earnings
|
13
|
5,044.4
|
4,181.9
|
Other
reserves
|
|
471.9
|
303.6
|
Shareholders' equity
|
|
6,257.7
|
5,214.9
|
|
|
|
|
|
Total liabilities and shareholders' equity
|
|
|
14,861.0
|
13,250.7
|
Condensed Consolidated Interim Income Statement for the Quarter
ended December 31, 2019 (unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
IFRS
|
IFRS
|
|
|
|
|
Q3 Dec 31
|
Q3 Dec 31
|
|
|
|
|
|
|
|
|
|
Change
|
2019
|
2018
|
|
|
Note
|
%
|
€M
|
€M
|
Operating revenues
|
|
|
|
|
|
Scheduled
revenues
|
|
+16%
|
1,186.0
|
1,020.9
|
|
Ancillary
revenues
|
|
+28%
|
720.0
|
560.5
|
Total operating revenues
|
|
+21%
|
1,906.0
|
1,581.4
|
|
|
|
|
|
Operating expenses
|
|
|
|
|
|
Fuel and oil
|
|
-14%
|
686.0
|
602.6
|
|
Airport and handling charges
|
|
-7%
|
272.7
|
254.5
|
|
Staff costs
|
|
-11%
|
276.5
|
249.5
|
|
Route charges
|
|
-
|
180.4
|
180.3
|
|
Depreciation
|
|
-17%
|
190.4
|
162.7
|
|
Marketing, distribution and other
|
|
+4%
|
137.4
|
143.5
|
|
Maintenance, materials and repairs
|
|
-58%
|
63.7
|
40.4
|
|
Aircraft rentals
|
|
+52%
|
7.6
|
15.9
|
Total operating expenses
|
|
-10%
|
1,814.7
|
1,649.4
|
|
|
|
|
|
|
Operating profit/(loss)
|
|
+234%
|
91.3
|
(68.0)
|
|
|
|
|
|
Other income/(expense)
|
|
|
|
|
|
Net finance expense
|
|
+20%
|
(11.3)
|
(14.2)
|
|
Foreign exchange gain
|
|
+214%
|
1.6
|
(1.4)
|
Total other (expense)
|
|
+38%
|
(9.7)
|
(15.6)
|
|
|
|
|
|
|
Profit/(loss) before tax
|
|
+198%
|
81.6
|
(83.6)
|
|
|
|
|
|
|
|
Tax (expense)/credit on profit
|
4
|
-65%
|
6.2
|
17.5
|
|
|
|
|
|
|
Profit/(loss) for the quarter - attributable to equity holders of
parent
|
|
|
87.8
|
(66.1)
|
|
|
|
|
|
|
|
Earnings per ordinary share (€)
|
|
|
|
|
|
Basic
|
9
|
|
0.0791
|
(0.0583)
|
|
Diluted
|
9
|
|
0.0784
|
(0.0580)
|
|
Weighted
ave. no. ord. shares (in Ms)
|
|
|
|
|
|
Basic
|
9
|
|
1,109.6
|
1,133.5
|
|
Diluted
|
9
|
|
1,119.2
|
1,139.8
|
*"+" is favourable and "-" is adverse year-on-year.
Ryanair Holdings plc and Subsidiaries
Condensed Consolidated Interim Income Statement for the nine months
ended December 31, 2019 (unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
IFRS
|
IFRS
|
|
|
|
|
9 Months Ended Dec 31,
|
9 Months Ended Dec 31,
|
|
|
|
Change*
|
2019
|
2018
|
|
|
Note
|
%
|
€M
|
€M
|
Operating revenues
|
|
|
|
|
|
Scheduled
revenues
|
|
+8%
|
4,921.0
|
4,568.4
|
|
Ancillary
revenues
|
|
+28%
|
2,374.7
|
1,851.0
|
Total operating revenues
|
|
+14%
|
7,295.7
|
6,419.4
|
|
|
|
|
|
Operating expenses
|
|
|
|
|
|
Fuel and oil
|
|
-20%
|
2,272.9
|
1,900.9
|
|
Airport and handling charges
|
|
-11%
|
932.9
|
841.3
|
|
Staff costs
|
|
-15%
|
859.9
|
744.9
|
|
Route charges
|
|
-2%
|
606.4
|
592.2
|
|
Depreciation
|
|
-18%
|
571.5
|
483.8
|
|
Marketing, distribution and other
|
|
-2%
|
436.5
|
427.4
|
|
Maintenance, materials and repairs
|
|
-45%
|
200.9
|
138.4
|
|
Aircraft rentals
|
|
+35%
|
35.1
|
54.0
|
Total operating expenses
|
|
-14%
|
5,916.1
|
5,182.9
|
|
|
|
|
|
|
Operating profit
|
|
+12%
|
1,379.6
|
1,236.5
|
|
|
|
|
|
Other income
|
|
|
|
|
|
Net finance expense
Share of associate
losses
|
|
+16%
+100%
|
(38.0)
-
|
(45.3)
(9.8)
|
|
Foreign exchange (loss)
|
|
+60%
|
(0.6)
|
(1.5)
|
Total other (expense)
|
|
+32%
|
(38.6)
|
(56.6)
|
|
|
|
|
|
|
Profit before tax
|
|
+14%
|
1,341.0
|
1,179.9
|
|
|
|
|
|
|
|
Tax (expense) on profit
|
4
|
-6%
|
(100.6)
|
(95.3)
|
|
|
|
|
|
|
Profit for the nine months - attributable to equity holders of
parent
|
|
+14%
|
1,240.4
|
1,084.6
|
|
|
|
|
|
|
|
Earnings per ordinary share (€)
|
|
|
|
|
|
Basic
|
9
|
+17%
|
1.1077
|
0.9457
|
|
Diluted
|
9
|
+17%
|
1.1026
|
0.9388
|
|
Weighted
ave. no. ord. shares (in Ms)
|
|
|
|
|
|
Basic
|
9
|
|
1,119.8
|
1,146.9
|
|
Diluted
|
9
|
|
1,125.0
|
1,155.3
|
*"+" is favourable and "-" is adverse year-on-year.
Ryanair Holdings plc and Subsidiaries
Condensed
Consolidated Interim Statement of Comprehensive Income for the
quarter ended
December 31, 2019
(unaudited)
|
|
|
|
Q3 Dec 31
|
Q3 Dec 31
|
|
2019
|
2018
|
|
€M
|
€M
|
|
|
|
Profit for the quarter
|
87.8
|
(66.1)
|
|
|
|
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
|
(51.7)
|
(509.3)
|
|
|
|
|
Other comprehensive income for the quarter, net of income
tax
|
(51.7)
|
(509.3)
|
|
|
|
Total comprehensive income for the quarter - attributable to equity
holders of parent
|
36.1
|
(575.4)
|
|
|
|
|
Ryanair Holdings plc and Subsidiaries
Condensed
Consolidated Interim Statement of Comprehensive Income for the
quarter ended
December 31, 2019
(unaudited)
|
|
|
|
9 Months
|
9 Months
|
|
Ended
|
Ended
|
|
Dec 31,
|
Dec 31,
|
|
2019
|
2018
|
|
€M
|
€M
|
|
|
|
Profit for the nine months
|
1,240.4
|
1,084.6
|
|
|
|
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
|
164.8
|
134.0
|
|
|
|
|
Other comprehensive income/(loss) for the quarter, net of income
tax
|
164.8
|
134.0
|
|
|
|
Total comprehensive income for the quarter - attributable to equity
holders of parent
|
1,405.2
|
1,218.6
|
|
|
|
|
Ryanair Holdings plc and Subsidiaries
Condensed Consolidated Interim Statement of Cash Flows for the nine
months ended December 31, 2019 (unaudited)
|
|
|
9 Months
|
9 Months
|
|
|
|
Ended
|
Ended
|
|
|
|
Dec 31,
|
Dec 31,
|
|
|
|
2019
|
2018
|
|
|
Note
|
€M
|
€M
|
Operating activities
|
|
|
|
|
Profit after tax
|
|
1,240.4
|
1,084.6
|
|
|
|
|
|
Adjustments to reconcile profit after tax to net cash provided by
operating activities
|
|
|
|
|
Depreciation
|
|
571.5
|
483.8
|
|
Increase in inventories
|
|
(2.2)
|
(2.7)
|
|
Tax expense on profit
|
|
100.6
|
95.3
|
|
Share based payments
|
|
5.9
|
7.5
|
|
Increase in intangible assets
|
|
-
|
(99.6)
|
|
Increase in trade receivables
|
|
(15.1)
|
(16.3)
|
|
Increase in other assets
|
|
(58.1)
|
(0.2)
|
|
Increase in trade payables
|
|
1,028.0
|
69.8
|
|
Decrease in accrued expenses
|
|
(1,029.6)
|
(994.0)
|
|
Decrease in other creditors
|
|
-
|
(2.8)
|
|
Decrease in provisions
|
|
(26.6)
|
(4.5)
|
|
Increase in net finance expense
Share of equity accounted investment's loss
|
|
4.5
-
|
1.6
9.8
|
|
Tax paid
|
|
(75.3)
|
(71.0)
|
Net cash provided by operating activities
|
|
1,744.0
|
561.3
|
|
|
|
|
|
Investing activities
|
|
|
|
|
Capital expenditure purchase of property, plant and
equipment
|
|
(1,375.1)
|
(1,188.8)
|
|
Decrease in restricted cash
|
|
0.5
|
-
|
|
Decrease in financial assets: cash > 3 months
|
|
63.4
|
770.8
|
|
Investment in associate
|
|
-
|
(32.0)
|
|
Cash acquired with subsidiary undertakings
|
|
-
|
7.0
|
Net cash (used in) investing activities
|
|
(1,311.2)
|
(443.0)
|
|
|
|
|
|
Financing activities
|
|
|
|
|
Shareholder returns (net of tax)
|
13
|
(371.5)
|
(560.5)
|
|
Net proceeds from shares issued
|
|
12.0
|
-
|
|
Proceeds from long term borrowings
|
|
750.0
|
-
|
|
Repayments of long term borrowings
|
|
(296.4)
|
(236.3)
|
|
Lease liabilities paid
|
|
(45.9)
|
-
|
Net cash from/(used) in financing activities
|
|
48.2
|
(796.8)
|
|
|
|
|
|
Increase/(decrease) in cash and cash equivalents
|
|
481.0
|
(678.5)
|
Cash and cash equivalents at
beginning of the period
|
|
1,675.6
|
1,515.0
|
Cash and cash equivalents at end of the period
|
|
2,156.6
|
836.5
|
|
|
|
|
Ryanair
Holdings plc and Subsidiaries
Condensed Consolidated Interim
Statement of Changes in Shareholders' Equity for the nine months
ended December 31, 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 nine months
|
-
|
-
|
-
|
1,084.6
|
-
|
-
|
-
|
1,084.6
|
Other comprehensive income
|
|
|
|
|
|
|
|
|
Net movements in cash flow reserve
|
-
|
-
|
-
|
-
|
-
|
134.0
|
-
|
134.0
|
Total other comprehensive income
|
-
|
-
|
-
|
-
|
-
|
134.0
|
-
|
134.0
|
Total comprehensive income
|
-
|
-
|
-
|
1,084.6
|
-
|
134.0
|
-
|
1,218.6
|
Transactions with owners of the Company recognised directly in
equity
|
|
|
|
|
|
|
|
|
Share-based payments
|
-
|
-
|
-
|
-
|
-
|
-
|
7.5
|
7.5
|
Repurchase of ordinary equity shares
|
-
|
-
|
-
|
(560.5)
|
-
|
-
|
-
|
(560.5)
|
Cancellation of repurchased ordinary shares
|
(37.8)
|
(0.2)
|
|
26.8
|
0.2
|
-
|
-
|
26.8
|
Balance at December 31, 2018
|
1,133.4
|
6.8
|
719.4
|
4,379.4
|
3.2
|
(225.7)
|
28.8
|
4,911.9
|
Loss for the three months
|
-
|
-
|
-
|
(199.6)
|
-
|
-
|
-
|
(199.6)
|
Other comprehensive income
|
|
|
|
|
|
|
|
|
Net movements in cash flow reserve
|
-
|
-
|
-
|
-
|
-
|
500.3
|
-
|
500.3
|
Total other comprehensive income
|
-
|
-
|
-
|
-
|
-
|
500.3
|
-
|
500.3
|
Total comprehensive income
|
-
|
-
|
-
|
(199.6)
|
-
|
500.3
|
-
|
300.7
|
Transactions with owners of the Company recognised directly in
equity
|
|
|
|
|
|
|
|
|
Share-based payments
|
-
|
-
|
-
|
-
|
-
|
-
|
0.2
|
0.2
|
Repurchase of ordinary equity shares
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
Other
|
-
|
-
|
-
|
2.1
|
-
|
-
|
-
|
2.1
|
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 nine months
|
-
|
-
|
-
|
1,240.4
|
-
|
-
|
-
|
1,240.4
|
Other comprehensive income
|
|
|
|
|
|
|
|
|
Net movements in cash flow reserve
|
-
|
-
|
-
|
-
|
-
|
164.8
|
-
|
164.8
|
Total other comprehensive income
|
-
|
-
|
-
|
-
|
-
|
164.8
|
-
|
164.8
|
Total comprehensive income
|
-
|
-
|
-
|
1,240.4
|
-
|
164.8
|
-
|
1,405.2
|
Transactions with owners of the Company recognised directly in
equity
|
|
|
|
|
|
|
|
|
Issue of ordinary equity shares
|
1.9
|
-
|
12.0
|
-
|
-
|
-
|
-
|
12.0
|
Share-based payments
|
-
|
-
|
-
|
-
|
-
|
-
|
5.9
|
5.9
|
Repurchase of ordinary equity shares
|
-
|
-
|
-
|
(371.5)
|
-
|
-
|
-
|
(371.5)
|
Other
|
-
|
-
|
-
|
0.9
|
-
|
-
|
-
|
0.9
|
Cancellation of repurchased ordinary shares
|
(32.3)
|
(0.2)
|
-
|
-
|
0.2
|
-
|
-
|
-
|
Transfer of exercised and expired share based awards
|
-
|
-
|
-
|
2.4
|
-
|
-
|
(2.4)
|
-
|
Balance at December 31, 2019
|
1,103.0
|
6.6
|
731.4
|
5,044.4
|
3.4
|
439.4
|
32.5
|
6,257.7
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ryanair Holdings plc and Subsidiaries
MD&A Quarter Ended December 31, 2019
Income Statement
Scheduled revenues:
Scheduled revenues increased by 16% to
€1,186.0M due to 6%
traffic growth to 35.9M guests and a 9% increase in average
fares.
Ancillary revenues:
Ancillary revenues increased by 28% to
€720.0M due to 6%
traffic growth and improved uptake of ancillary products,
particularly priority boarding and reserved
seats.
Total Revenue:
As a result of the above, total revenue increased
by 21%
to €1,906.0M.
Operating Expenses:
Fuel and oil:
Fuel and oil increased by 14% to
€686.0M due to
higher fuel prices and an 8% increase in flight
hours.
Airport and handling charges:
Airport and handling charges increased by 7% to
€272.7M primarily
due to a 6% increase in traffic, stronger sterling and new enhanced
handling arrangements in Stansted, Spain &
Poland.
Staff
costs:
Staff costs increased 11% to
€276.5M due to 8%
more flight hours, higher crewing ratios and the annualisation of
pilot pay increases.
Route
charges:
Route charges remained flat at €180.4M,
with a 6% increase in sectors offset by a decrease in unit
rates.
Depreciation:
Depreciation increased 17% to
€190.4M due to
higher capitalised maintenance and the impact of IFRS 16
(€15.6M) which was adopted from April 1,
2019.
Marketing, distribution and other:
Marketing, distribution and other reduced
by 4%
to €137.4M due to
lower EU261 compensation costs.
Maintenance, materials and repairs:
Maintenance, materials and repairs increased
by 58%
to €63.7M due to
higher scheduled engine maintenance due to an ageing fleet, MAX
delays and provision for 12 additional A320 operating
leases.
Aircraft rentals:
Aircraft rentals reduced by 52% to
€7.6M due to the
adoption of IFRS 16 in April 2019.
Unit cost per pax:
Unit cost per pax increased by 3%. Excluding fuel, unit cost per
pax increased by 1%. This was primarily due to higher crewing
ratios, the annualisation of pilot pay increases and increased
ownership costs due to the Boeing MAX delivery delays, offset by
lower EU261 compensation costs.
Net finance expense:
Net finance expense decreased by 20% to
€11.3M as a result
of higher interest rates achieved on deposits and the re-financing
of debt at lower interest rates. IFRS 16 had a negative €1.4M
impact in the quarter.
Balance sheet:
Gross cash increased by €417.1M to €3,612.0M at
December 31, 2019.
Gross debt increased by €678.7M to €4,323.1M due to a
new €750.0M low cost syndicated bank facility and the impact
of IFRS 16 (€230.9M), offset by €296.4M debt repayments
and €45.9M lease liability payments. €1,744.0M net cash
was generated by operating activities. Net capital expenditure was
€1,375.1M and shareholder returns amounted to
€371.5M.
Net debt was €711.1M (including €230.9M IFRS 16 lease
liability) at period end. (March 2019: €449.5M).
Shareholders'
equity:
Shareholders' equity increased by €1,042.8M to
€6,257.7M in the period due to IFRS hedge accounting
treatment for derivatives of €164.8M and consolidated profit
after tax of €1,240.4M, offset by €371.5M shareholder
returns.
MD&A Nine Months Ended December 31, 2019
Income Statement
Scheduled revenues:
Scheduled revenues increased by 8% to
€4,921.0M due to 9%
traffic growth to 121.6M guests offset by a 1% reduction in average
fares.
Ancillary revenues:
Ancillary revenues increased by 28% to
€2,374.7M due to 9%
traffic growth and improved uptake of ancillary products,
particularly priority boarding and reserved
seats.
Total revenues:
As a result of the above, total revenues increased
by 14%
to €7,295.7M.
Operating Expenses:
Fuel and oil:
Fuel and oil increased by 20% to
€2,272.9M due to
higher fuel prices and an 11% increase in flight
hours.
Airport and handling charges:
Airport and handling charges increased by 11% to
€932.9M due to an 9%
increase in traffic, new enhanced handling arrangements in
Stansted, Spain & Poland, stronger sterling and the
consolidation of Lauda (from August 2018).
Staff
costs:
Staff costs increased 15% to
€859.9M due to 11%
more flight hours, the consolidation of Lauda (from August 2018),
higher crewing ratios and the annualisation of pilot pay
increases.
Route
charges:
Route charges increased by 2% to
€606.4M due to an 9%
increase in sectors, offset by a decrease in unit
rates.
Depreciation:
Depreciation increased 18% to
€571.5M due to the
impact of IFRS 16 (€42.9M) which was adopted from April 2019
and the purchase of spare engines and Boeing MAX
simulators.
Marketing, distribution and other:
Marketing, distribution and other costs increased
by 2%
to €436.5M, slower
than traffic growth, due to lower EU261 compensation
costs.
Maintenance, materials and repairs:
Maintenance, materials and repairs increased
by 45%
to €200.9M due to
higher scheduled engine maintenance due to an ageing fleet and MAX
delays, costs associated with the hand back of Airbus aircraft and
maintenance provision for 12 additional A320 operating
leases.
Aircraft rentals:
Aircraft rentals reduced by 35% to
€35.1M due to the
adoption of IFRS 16 in April 2019, which is offset by higher
depreciation costs.
Unit cost per pax:
Unit cost per pax increased by 4%. Excluding fuel, unit costs per
pax increased by 2%. This was primarily due to higher crewing
ratios, the annualisation of pilot pay increases, increased
ownership costs due to the Boeing MAX delivery delays and the
handback of Airbus leases, offset by lower EU261
compensation.
Net finance
expense:
Net finance expense decreased by 16% to
€38.0M primarily due
to higher interest rates achieved on deposits and the re-financing
of debt at lower interest rates. IFRS 16 had a negative impact of
€4.0M in the nine month period.
Ryanair Holdings plc and Subsidiaries
Interim Management Report
Introduction
This financial report for the nine months ended December 31, 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 three months of
the year;
●
Related
party transactions; and
●
Post
balance sheet events.
Results of operations for the nine months ended December 31, 2019
compared to the nine months ended December 31, 2018, including
important events that occurred during the nine months, 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 the Ryanair 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 nine months ended December 31,
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 the Ryanair 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 December 31, 2019 figures and the December 31, 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 nine months ended December 31, 2019 on January
31, 2020.
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).
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 nine months ended
December 31, 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 terms less than 12 months.
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 December 31, 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 €130.7M, increased liabilities by
€140.4M and reduced equity (distributable reserves) by
€9.7M.
When measuring lease liabilities for leases that were previously
classified as operating leases, the Group has discounted lease
payments using its incremental borrowing rate at April 1, 2019, the
rates which ranged from between 2.5% and 3.0%.
Impact of IFRS 16 in the nine-month period:
During the nine-month period ended December 31, 2019 non-current
assets increased by €93.7M and liabilities increased by
€90.5M (net) due to the addition of 15 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 nine months ended December 31, 2019, the Group
recognised €42.9M of depreciation expense and €4.0M 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 nine-months ended December 31, 2019 was 7.5%
(December 31, 2018: 8.1%). The tax charge for the nine-months
ended December 31, 2019 of €100.6M (December 31, 2018:
€95.3M) comprises a current tax charge of €146.1M and a
deferred tax credit of €45.5M 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 €5.9M in the nine months ended
December 31, 2019 (December 31, 2018: €7.5M) 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 1.9M ordinary shares
were issued at a strike price between €6.25 and €6.74
per share following the exercise of vested options.
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 December 31, 2019 the Group had an operating fleet of 445 (2018:
456) Boeing 737 and 23 (2018: 11) 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
over the next four years.
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 nine
months.
Reportable segment information is presented as
follows:
|
|
|
|
|
Nine Months
|
Nine Months
|
|
Ended
|
Ended
|
|
Dec 31, 2019
|
Dec 31, 2018
|
|
€M
|
€M
|
Revenues
|
7,295.7
|
6,419.4
|
Profit after tax
|
1,240.4
|
1,084.6
|
|
|
|
|
Total
|
Total
|
|
At Dec 31, 2019
€M
|
At Mar 31, 2019
€M
|
Reportable segment assets
|
14,861.0
|
13,250.7
|
Reportable segment liabilities
|
8,603.3
|
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.
9.
Earnings per
share
|
|
Quarter
|
Quarter
|
Nine
|
Nine
|
|
|
|
Ended
|
Ended
|
Months Ended
|
Months Ended
|
|
|
|
Dec 31,
|
Dec 31,
|
Dec 31,
|
Dec 31,
|
|
|
|
2019
|
2018
|
2019
|
2018
|
|
|
|
|
|
|
|
|
Basic earnings per ordinary share (€)
|
|
0.0791
|
(0.0583)
|
1.1077
|
0.9457
|
|
Diluted earnings per ordinary share (€)
|
|
0.0784
|
(0.0580)
|
1.1026
|
0.9388
|
|
Weighted average number of ordinary shares (in M's) -
basic
|
|
1,109.6
|
1,133.5
|
1,119.8
|
1,146.9
|
|
Weighted
average number of ordinary shares (in M's) - diluted
|
|
1,119.2
|
1,139.8
|
1,125.0
|
1,155.3
|
|
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 €5.3M (2018:
€8.4M).
10. Property,
plant and equipment
Acquisitions and disposals
Capital
expenditure in the nine-months ended December 31, 2019 amounted to
€1,375.1M and primarily relates to aircraft deposits, spare
engines, simulators and heavy maintenance checks.
11. Assets
held for sale
In
August 2019, the Company entered into an agreement to sell 10
Boeing 737-800 aircraft for delivery in FY20 and FY21. 3 of these
aircraft were sold in the quarter ended December 31, 2019. The
remaining 7 aircraft are presented as assets held for sale as at
December 31, 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
Ryanair 2019 Annual Report. There have been no changes in our risk
management policies during 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 December 31,
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 nine months ended
December 31, 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
December 31, 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 nine months ended December 31, 2019 that
affect the fair value of our financial assets and financial
liabilities.
12. Financial
instruments and financial risk management
(continued)
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 Dec 31,
|
At
Dec 31,
|
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
|
237.3
|
237.3
|
220.7
|
220.7
|
|
- Jet
fuel derivative contracts
|
15.2
|
15.2
|
4.5
|
4.5
|
|
-
Interest rate swaps
|
3.3
|
3.3
|
2.3
|
2.3
|
|
|
255.8
|
255.8
|
227.5
|
227.5
|
|
Current financial assets
|
|
|
|
|
|
Derivative
financial instruments:-
|
|
|
|
|
|
- U.S.
dollar currency forward contracts
|
235.5
|
235.5
|
307.0
|
307.0
|
|
- Jet
fuel & carbon derivative contracts
|
44.4
|
44.4
|
|
|
|
-
Interest rate swaps
|
1.7
|
1.7
|
1.7
|
1.7
|
|
|
281.6
|
281.6
|
308.7
|
308.7
|
|
Trade
receivables*
|
74.6
|
|
59.5
|
|
|
Cash
and cash equivalents*
|
2,156.6
|
|
1,675.6
|
|
|
Financial
asset: cash > 3 months*
|
1,421.0
|
|
1,484.4
|
|
|
Restricted
cash*
|
34.4
|
|
34.9
|
|
|
Other
assets*
|
1.1
|
|
0.8
|
|
|
|
3,969.3
|
281.6
|
3,563.9
|
308.7
|
|
Total
financial assets
|
4,225.1
|
537.4
|
3,791.4
|
536.2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
At Dec 31,
|
At
Dec 31,
|
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
|
5.7
|
5.7
|
8.0
|
8.0
|
|
- Jet
fuel contracts
|
-
|
-
|
-
|
-
|
|
|
5.7
|
5.7
|
8.0
|
8.0
|
|
|
|
|
|
|
|
Long-term
debt
|
1,393.5
|
1,404.0
|
892.8
|
906.8
|
|
Bonds
|
2,443.4
|
2,517.6
|
2,442.2
|
2,509.1
|
|
|
3,842.6
|
3,927.3
|
3,343.0
|
3,423.9
|
|
Current financial liabilities
|
|
|
|
|
|
Derivative
financial instruments:-
|
|
|
|
|
|
- Jet
fuel & carbon derivative contracts
|
16.0
|
16.0
|
189.7
|
189.7
|
|
- U.S.
dollar currency forward contracts
|
0.4
|
0.4
|
-
|
-
|
|
|
16.4
|
16.4
|
189.7
|
189.7
|
|
Current
maturities of debt
|
255.3
|
255.3
|
309.4
|
309.4
|
|
Trade
payables*
|
1,601.8
|
|
573.8
|
|
|
Accrued
expenses*
|
415.4
|
|
320.8
|
|
|
|
2,288.9
|
271.7
|
1,393.7
|
499.1
|
|
Total
financial liabilities
|
6,131.5
|
4,199.0
|
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.
13. Shareholder
returns
In the nine months ended December 31, 2019 the Company bought back
32.3M ordinary shares at a total cost of €371.5M. This
buy-back was equivalent to approximately 2.9% of the Company's
issued share capital at March 31, 2019. All ordinary shares
repurchased are cancelled.
In FY19 the Company bought back 37.8M shares at a total cost of
€560.5M. 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 nine months ended December
31, 2019, share capital decreased by 32.3M ordinary shares (37.8M
ordinary shares in the year ended March 31, 2019) with a nominal
value of €0.2M (€0.2M in the year ended March 31, 2019)
and the other undenominated capital reserve increased by a
corresponding €0.2M (€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 nine months ended
December 31, 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
Ryanair 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
January 1, 2019 and January 29, 2020 the Company bought back 4.7M
ordinary shares at a total cost of €71.2M under its
€700M share buy-back which commenced in May 2019. This was
equivalent to 0.4% of the Company's issued share capital at
December 31, 2019. All ordinary shares re-purchased are
cancelled.
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: 03
February, 2020
|
By:___/s/
Juliusz Komorek____
|
|
|
|
Juliusz
Komorek
|
|
Company
Secretary
|
Ryanair (PK) (USOTC:RYAOF)
Historical Stock Chart
From Mar 2024 to Apr 2024
Ryanair (PK) (USOTC:RYAOF)
Historical Stock Chart
From Apr 2023 to Apr 2024