Renfe Viajeros has launched a Value Generation and Efficiency Improvement Plan to increase its competitiveness and obtain an immediate impact on its business result. Specifically, it has identified 46 commercial initiatives that will increase its earnings before interest, taxes, depreciation, and amortization (EBITDA) by EUR 27.8 million in the 2024 financial year.
To this end, the company has created a review group of this plan that meets monthly and aims to carry out a detailed monitoring of this programme from its multiple areas of action, evaluating both its progress by corridors and its progression and real effect on EBITDA.
The contribution of the measures in this plan is seen in an improvement in the cumulative earnings of Renfe Viajeros, the division focused on passenger transport, up to August. Its gross operating profit has risen during the first eight months of the year to EUR 207 million, 13.5% more than during the same period of 2023, in which EUR 182.3 million were recorded.
This increase in turnover is also reflected in an 18.6% reduction in the losses of the passengers subsidiary in the same period, from an accumulated EUR 41.5 million in August 2023 to the current EUR 33.7 million.
The group’s earnings have also continued on this positive path despite strong price competition in the deregulated segments, rising to EUR 2,464.5 million for the period from January to August this year, 3% more than last year (EUR 2,393.8 million).
Constantly evolving plan
The measures in the Value Generation and Efficiency Improvement Plan are constantly evolving and adapted to both market circumstances and the competitive situation.
To date, the total number of initiatives launched amounts to 33 (out of the 46 total), which represents an advance of 72% over the overall programming of the annual measures.
The initiatives adopted at this time have resulted in an increase in the Renfe group‘s EBITDA of EUR 12.7 million, recording a total of 25 consolidated projects and 8 new initiatives initiated in the summer.
Therefore, at the halfway point of this programme, 46% of the annual target (27.8 million euros) has been reached thanks to the contribution of the initiatives promoted in all corridors.
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