Flight Centre has upgraded its profit guidance for the 2011/12 financial year with the retailer expecting a record pre-tax profit as its international businesses thrive despite global economic uncertainty.
The agency today revealed it anticipated a profit before tax between $285 million and $290 million, 16-18% above the previous years’ figure of $245.2 million.
The result marks a considerable increase on its initial projections of $265 million to $275 million.
Managing director Graham Turner said the retailer had not experienced the sales slowdown felt by many during the year, although he admitted economic uncertainty in some markets had resulted in a “more cautious leisure travel customer”.
“While FLT is not immune to external shocks and continues to monitor market conditions as it looks to 2012/13, its brand and geographic diversity can buffer it from the impacts of a downturn in any one country or sector,” he said.
While FLT’s Australian leisure business continued to spearhead the network, he highlighted its international operations as increasingly important with all 10 countries profitable for the second consecutive year.
Record profits were achieved in Dubai, Singapore and China with the UK on track to deliver around $23 million in EBIT, an increase of 50%, and the US likely to contribute around $9 million EBIT, almost double its target of $5 million.
Meanwhile, Turner said the firm had consolidated its position in the corporate travel market, both in Australia and overseas.
“Our global corporate businesses now generate more than $4 billion in total transaction value per year and are generally performing well,” he said.
In addition, it continues to build its online presence with the aim of providing a “blended travel experience” combining its bricks and mortar network with “expanded online capabilities”.
During 2012/13, FLT expects to grow its global sales force by 8-10% employing an additional 1000 sales consultants and expanding its network to 2500 shops.
Its full year accounts will be released on August 28.
