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By
Reuters
Published
Nov 14, 2014
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World Duty Free names insider as new CEO

By
Reuters
Published
Nov 14, 2014

MILAN, Italy - Italy's World Duty Free on Friday appointed Chief Commercial Officer Eugenio Andrades to the role of CEO replacing Jose Maria Palencia who stepped down after disagreements over strategy.

Shares in the travel retailer rose on the news as analysts welcomed the appointment of someone with good knowledge of the business.


The stock has lost nearly 30 percent of its value after the group last month revealed higher-than-expected rental costs linked to a Spanish airport contract.

Shares in WDF closed up 2 percent on Friday outperforming a 1 percent rise in Italy's blue-chip index.

Also on Friday WDF posted a 5.7 percent rise in third-quarter underlying core earnings to 89 million euros and confirmed its full year guidance excluding some restructuring costs and higher rents to be paid for the extension of a contract with London's Heathrow airport.

Sales were up 13 percent in the period after stripping out the contribution of a U.S. airport retail unit WDF bought from Autogrill last year before it was spun off from the motorway and airport restaurant operator.

WDF said it will present a new business plan by the end of January to better integrate its Spanish and British operations.

It is also targeting higher profitability at its Spanish operations and expansion in the United States.

The group, which now has head offices both in London and Madrid, will make the British capital its only headquarters, and said Boston Consulting Group and Bain & Company would provide advice on strategy.

1 EUR = 0.799214 GBP
1 EUR = 1.25205 USD

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