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 FULL YEAR PROFIT OF €1.43BN
DUE TO STRONG TRAFFIC RECOVERY & FAVOURABLE OIL
HEDGES
Ryanair
Holdings plc today (22 May) reported a Q4 loss of €154m but a
full-year PAT of €1.43bn, compared to a PY loss of
(€355m), due to strong FY traffic recovery, improving fares,
industry leading cost base and advantageous fuel
hedges.
31 Mar. 2022
31 Mar. 2023
Change
Load
Factor
82%
93%
+11pts
Customers
97.1m
168.6m
+74%
Revenue
€4.80bn
€10.78bn
+124%
Op.
Costs
€5.27bn*
€9.20bn*
+75%
Net
(Loss)/ PAT
(€355m)*
€1.43bn*
n/m
EPS
(€0.21)
€1.16
n/m
Net
(debt)/cash
(€1.45bn)
€0.56bn
n/m
* Non IFRS: Excl. €114m except. unrealised mark-to-market
loss (timing unwind) on fuel caps (FY22: €114m
gain).
During
FY23:
●
Traffic rose 74% to
168.6m (+13% over FY20 traffic).
●
FY fares up 10% on
pre-Covid levels.
●
Ex-fuel unit costs
fell to €31.
●
98x B737-8200
"Gamechangers". Total fleet of 537 aircraft at 31
Mar.
●
FY24 fuel 85%
hedged at $89bbl.
●
5 new bases and
c.300 new routes opened in FY23.
●
Pay cuts restored
28 months early by agreement for almost all crews.
●
Strong market share
gains in Italy, Poland, Ireland, Spain and across
Europe.
●
Strong balance
sheet with small year-end net cash due to Boeing delivery
delays.
●
300 MAX-10 order
(signed) to renew fleet & grow traffic to 300m p.a. by
FY34.
Ryanair's Michael O'Leary, said:
ENVIRONMENT:
"Passengers
who switch to Ryanair (from EU legacy airlines) can reduce their
emissions by up to 50% per flight. Over the past year, we
made significant progress to become net carbon neutral by
2050. Our new, fuel efficient, B737 "Gamechangers" (4% more seats, but
16% less fuel) increased to 98 aircraft at year end, and we began
to retrofit scimitar winglets on our B737NG fleet which will
further cut fuel burn by 1.5%.
We are working hard to achieve ambitious 2030 goals of powering
12.5% of Ryanair flights with SAF. We have recently expanded
our SAF partnerships with Neste (Schiphol), OMV (Austria, Germany
and CEE) and Shell (in London and Dublin) by announcing a
multi-year MOU with Repsol to supply Ryanair bases in Spain.
Through A4E, and the EU, we are campaigning to accelerate reform of
European ATC to eliminate avoidable flight cancellations/delays
(something urgent in light of repeated French ATC strikes in Q1),
which will substantially lower fuel consumption and CO₂
emissions. We urge all EU consumers to sign our
"Protect
Overflights" petition
on www.ryanair.com.
Ryanair
is Europe's No.1 ranked EU airline for ESG by
Sustainalytics[1]. During
FY23, MSCI increased our ESG rating to 'BBB' (from 'B') and CDP
reconfirmed Ryanair's industry leading ('B') climate rating for
2023.
SOCIAL :
Ryanair's
commitment to maintaining jobs and keeping skills current through
the 2-years Covid crisis, albeit with Govt. payroll support and
temporary pay cut agreements with union partners (now restored,
over 2 years sooner than planned), maximised our crew jobs security
while our competitors cut thousands of jobs. It also meant
that Ryanair was fully staffed to operate its S.22 schedule, while
many competitors cancelled capacity (often at short notice) in the
face of severe staff shortages. Following a strong H1
performance, Ryanair fully restored pay (some 28 months early) by
agreement with our unions on new long-term multi-year pay
agreements.
As
Ryanair grows traffic to 225m p.a. by FY26 and 300m by FY34, our
Group will create over 10,000 new jobs for highly paid pilots,
cabin crew, and engineers. Over the past year we recruited
and trained over 3,000 new crew members (incl. 1,000 pilot
cadets). The Group opened new engineering facilities in
Bergamo (Italy), Malta, Kaunas (Lith.) and Shannon (Ire.) and
recently announced a €40m new Dublin maintenance centre
(creating over 200 engineering jobs). These new facilities
and fleet growth enables us to create cadet positions and
apprenticeships for school leavers, bringing through the next
generation of highly skilled aviation professionals. Ryanair
Labs is actively recruiting IT & digital professionals to join
our dev. teams in Dublin, Madrid, Porto and Wroclaw.
Ryanair's
strong S.22 operational resilience (despite multiple ATC
delays/strikes, airport security/handling staff shortages) meant we
delivered industry leading capacity recovery and OTP for our
customers. This was reflected in FY23's CSAT score of over
85%, with "crew friendliness" our top score (rated over 95%).
This summer, in anticipation of further ATC disruptions, we have
invested heavily in our operations (increased crew ratios, doubled
the size of our ops centres, enhanced day-of-travel app. and we
continue to improve customer comms.) to ensure that our
passengers and crews continue to enjoy Ryanair's industry leading
OTP and reliability.
GOVERNANCE:
In
recent months, 3 new NEDs (Eamonn Brennan, Elisabeth Köstinger
and Anne Nolan) have joined the Ryanair Board. Our Chairman (Stan
McCarthy) has also refreshed our Board Committees. Dick
Milliken, having successfully overseen the rotation of external
auditors (from KPMG to PwC) during FY23, has chosen not to seek
re-election at the 2023 AGM in Sept. To facilitate
experienced management of the Group, orderly succession and the
onboarding of new NEDs, Louise Phelan has agreed to remain on the
Board for one more year. Over the past year, Ryanair's EU
ownership has increased from 41% to 46% at year end.
GROWTH:
Ryanair's
market share has grown significantly in most EU markets as we
operated 116% of our pre-Covid capacity in FY23. Most notable
gains were recorded in Italy (from 27% to 40%), Poland (26% to 36%)
and Ireland (49% to 58%). This summer we will operate our
largest ever schedule (almost 2,500 routes with over 3,000 daily
flights), capitalising on traffic restoration, and multi-year
growth deals negotiated by our New Route teams. Structural EU
capacity reductions following numerous EU airline failures or fleet
reductions during Covid, high oil prices (discouraging weaker,
unhedged, airlines from adding capacity), a shortage of aircraft
(new & leased) and the return of Asian and American visitors to
Europe (due to the very strong US$) means that while S.23 European
short-haul capacity remains below pre-Covid levels, demand is
notably robust. Forward bookings and air fares currently into
S.23 are strong and we continue to urge all customers to book early
to avoid rising "close-in"
prices.
We
expect European airlines will continue to consolidate over the next
2 years and it seems likely they will deploy capacity in a
disciplined manner. The large backlog of OEM aircraft
deliveries is likely to constrain capacity growth in Europe for at
least 4 more years which confers a considerable growth premium on
Ryanair's remaining 110 B737 Gamechangers deliveries over the
next 3 summers. Our widening unit cost advantage over all
competitors, our fuel hedging, strong balance sheet and our very
low-cost aircraft order book, as well as our proven operational
resilience, creates enormous growth opportunities for Ryanair over
the coming years.
FY23 BUSINESS REVIEW:
Revenue & Costs:
FY23
scheduled revenue grew over 160% to €6.93bn. Following
a disappointing Q1 (when traffic was badly impacted by Russia's
invasion of Ukraine on 24 Feb. 2022), strong travel demand through
the remainder of the year saw traffic rise 74% at higher fares
(+10% on pre-Covid). Ancillary sales delivered a solid
performance, generating just under €23 per passenger
(€3.84bn). Total FY23 revenue rose 124% to
€10.78bn. Total operating costs rose 75% to
€9.20bn, driven by higher fuel costs (+113% to €3.90bn,
offset by favourable fuel hedges and improved fuel burn as more
Gamechangers entered the fleet), crew pay restoration and 74%
traffic growth. Ex-fuel operating costs rose 54%, which was
well below traffic growth, and unit costs (ex-fuel) were just
€31 as Ryanair's cost advantage over all other EU competitors
widened substantially as we predicted it would. Our industry
leading fuel hedging (over 80% hedged at approx. $64bbl)
contributed significantly to the final FY23 profit outcome, saving
the Group over €1.4bn.
FY24
jet fuel requirements are almost 85% hedged at approx. $89bbl (with
a mix of forwards and caps) and 25% of H1 FY25 is covered at
$77bbl. Just over 90% of FY24 €/$ opex is hedged at
1.08 and 38% of H1 FY25 is covered at 1.11. Our
B-8200 "Gamechanger" order book is fully
hedged at €/$ 1.24 which further lowers the cost of these new
aircraft compared to many competitors who are engaged in expensive
(and getting more expensive) leasing to grow their fleet even as
interest rates are rising.
Balance Sheet & Liquidity:
Our
balance sheet is one of the strongest in the industry with a BBB+
credit rating and €4.7bn gross cash at year-end, despite an
€850m bond repayment in March 2023. Almost all the
Group's B737 fleet are owned and 99% are unencumbered, which
significantly widens our cost advantage, as interest rates and
leasing costs continue to rise for competitors. Thanks to our
strong booking recovery, improving air fares and Boeing delivery
delays, net cash at 31 Mar. was €0.56bn (compared to net debt
of €1.45bn at 31 Mar. 2022), despite over €1.9bn
capex. (Capex was c.€450m lower than expected due to
Boeing delivery delays - now timed into FY24). Earlier this
month Ryanair converted its unsecured €750m syndicated term
loan into a revolving credit facility (at a lower margin) with an
extended maturity to May 2028 (was 2024). Over the coming
months we will repay a €750m maturing bond in Aug. and fund
over €2.6bn capex (FY24 is the peak capex year under
the "Gamechanger" order) while
planning to retain a broadly flat net cash/debt position. We
will continue to preserve cash to minimise financing costs as we
face considerable annual aircraft capex of over €2bn p.a.
from 2027 onwards.
AIRCRAFT ORDERS:
Earlier
this month, Ryanair signed an agreement to purchase 300 new Boeing
737-MAX-10 aircraft (150 firm and 150 options), which is subject to
AGM approval on 14 Sept. next. These, fuel efficient,
aircraft have 228 seats (21% more than our B737NGs) and phased
deliveries between 2027 and 2033. We expect 50% of the order
will be used to replace older NGs, while the remainder will
facilitate disciplined traffic growth to approx. 300m p.a. by FY34
(an 80% increase over FY23's traffic). Apart from delivering
significant revenue growth, the additional seats (coupled with
greater fuel, carbon and noise efficiency) will further widen
Ryanair's considerable unit-cost advantage over all European
competitor airlines. Given the strength of the Group's
balance sheet, our strong credit ratings and the 2-year gap between
the delivery of the final B-8200 "Gamechanger" in late Dec. 2024
and the first MAX-10 in early 2027, we anticipate that capex will
be funded primarily from internal resources (although the Group
will remain opportunistic in its financing decisions).
As a
result of Boeing's recent B737 delivery disruptions, we expect to
be short (up to 10) B-8200s for peak (June & July) S.23
schedules. To facilitate Boeing, and to assist their
resumption of scheduled B-8200 deliveries this autumn, we will take
delivery of aircraft through July (and possibly into Aug.).
We hope and expect that Boeing will recover quickly from this
recent delay to minimise its impact on our FY24 traffic growth and
profitability.
OUTLOOK:
This
year Ryanair hopes to grow traffic to approx. 185m (+10%), although
Boeing's recent delivery delays may push some of this growth into
the lower yielding H2 and may reduce this target slightly.
Our FY24 fuel bill will increase by over €1bn due to higher
oil prices (despite our more fuel-efficient fleet). While we
continue to enjoy a significant cost advantage over competitor
airlines, we expect to record a modest increase in unit costs
(ex-fuel) as annualised crew pay restoration, higher crew ratios
this summer and increased enroute charges will not be fully offset
by B737 Gamechanger deliveries in H1. To date, S.23 demand is
robust, and peak S.23 fares are trending ahead of last year.
Q1 fares, which benefitted from a strong Easter in April (and a
very weak PY comparable due to Russia's invasion of Ukraine), will
be significantly higher than Q1 FY23.
Despite
ongoing uncertainty over the timing of Boeing deliveries, almost
15% unhedged fuel, limited Q2 visibility and zero H2 fare
visibility (normal at this time of year), we are cautiously
optimistic that FY24 revenue will grow sufficiently to cover our
€1bn higher fuel bill and still deliver a modest year-on-year
profit increase. This guidance remains heavily dependent upon
avoiding adverse events during FY24 (such as the war in Ukraine or
further, repeated, Boeing delivery delays)."
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 & Ryanair UK.
Carrying 185m guests p.a. on over 3,000 daily flights from 91
bases, the Group connects 230 airports in 36 countries on a fleet
of 540 aircraft, with a further 410 Boeing 737 on order, which will
enable the Ryanair Group to grow traffic to 225m p.a. by FY26 &
300m p.a. by FY34. Ryanair has a team of over 22,000 highly skilled
aviation professionals delivering Europe's No.1 operational
performance, and an industry leading 38-year safety record. Ryanair
is Europe's greenest, cleanest, major airline group and customers
switching to fly Ryanair can reduce their CO₂ emissions by up
to 50% compared to major European legacy 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, the availability of appropriate
insurance cover, actions of the Irish, U.K., European Union ("EU")
and other governments and their respective regulatory agencies,
post-Brexit uncertainties, 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 U.K. and Continental Europe, the
general willingness of passengers to travel and other economics,
social and political factors, global pandemics such as Covid-19 and
unforeseen security events.
Ryanair Holdings plc and Subsidiaries
Condensed Consolidated Preliminary Balance Sheet as at
March 31, 2023 (unaudited)
At Mar 31,
At Mar 31,
2023
2022
Note
€M
€M
Non-current assets
Property,
plant and equipment
9
9,908.9
9,095.1
Right-of-use
asset
9
209.1
133.7
Intangible
assets
146.4
146.4
Derivative
financial instruments
11
54.6
185.1
Deferred
tax
6.6
42.3
Other
assets
168.9
72.1
Total non-current assets
10,494.5
9,674.7
Current assets
Inventories
6.0
4.3
Other
assets
878.6
401.1
Trade
receivables
11
59.7
43.5
Derivative
financial instruments
11
292.1
1,400.4
Restricted
cash
11
19.5
22.7
Financial
assets: cash > 3 months
11
1,056.2
934.1
Cash
and cash equivalents
11
3,599.3
2,669.0
Total current assets
5,911.4
5,475.1
Total assets
16,405.9
15,149.8
Current liabilities
Provisions
19.8
9.2
Trade
payables
11
1,065.5
1,029.0
Accrued
expenses and other liabilities
4,783.5
2,992.8
Current
lease liability
43.2
56.9
Current
maturities of debt
11
1,056.7
1,224.5
Derivative
financial instruments
11
386.6
38.6
Current
tax
66.3
47.7
Total current liabilities
7,421.6
5,398.7
Non-current liabilities
Provisions
154.5
94.1
Trade
payables
11
-
49.2
Derivative
financial instruments
11
11.2
-
Deferred
tax
159.3
266.5
Non-current
lease liability
163.1
81.4
Non-current
maturities of debt
11
2,853.2
3,714.6
Total non-current liabilities
3,341.3
4,205.8
Shareholders' equity
Issued
share capital
6.9
6.8
Share
premium account
1,379.9
1,328.2
Other
undenominated capital
3.5
3.5
Retained
earnings
4,180.0
2,880.9
Other
reserves
72.7
1,325.9
Shareholders' equity
5,643.0
5,545.3
Total liabilities and shareholders' equity
16,405.9
15,149.8
Ryanair Holdings plc and Subsidiaries
Condensed Consolidated Preliminary Income Statement for year ended
March 31, 2023 (unaudited)
Pre-Except.
Change
Pre-
Except.
Except.
IFRS
Pre-Except.
Except.
IFRS
Year Ended
Year Ended
Year Ended
Year Ended
Year Ended
Year Ended
Mar 31, 2023
Mar 31, 2023
Mar 31, 2023
Mar 31, 2022
Mar 31, 2022
Mar 31, 2022
Note
%*
€M
€M
€M
€M
€M
€M
Operating revenues
Scheduled revenues
+161%
6,930.3
-
6,930.3
2,652.5
-
2,652.5
Ancillary revenues
+79%
3,844.9
-
3,844.9
2,148.4
-
2,148.4
Total operating revenues
8
+124%
10,775.2
-
10,775.2
4,800.9
-
4,800.9
Operating expenses
Fuel and oil
-113%
3,895.2
130.5
4,025.7
1,829.9
(130.5)
1,699.4
Airport and handling charges
-53%
1,240.5
-
1,240.5
813.4
-
813.4
Staff costs
-73%
1,191.4
-
1,191.4
690.1
-
690.1
Depreciation
-28%
923.2
-
923.2
719.4
-
719.4
Route charges
-64%
903.7
-
903.7
551.2
-
551.2
Marketing, distribution and other
-64%
674.4
-
674.4
411.3
-
411.3
Maintenance, materials and repairs
-46%
373.7
-
373.7
255.7
-
255.7
Total operating expenses
-75%
9,202.1
130.5
9,332.6
5,271.0
(130.5)
5,140.5
Operating profit/(loss)
1,573.1
(130.5)
1,442.6
(470.1)
130.5
(339.6)
Other (expense)/income
Net finance expense
+62%
(34.4)
-
(34.4)
(91.4)
-
(91.4)
Foreign exchange
34.3
-
34.3
1.2
-
1.2
Total other (expense)/income
(0.1)
-
(0.1)
(90.2)
-
(90.2)
Profit/(loss) before tax
1,573.0
(130.5)
1,442.5
(560.3)
130.5
(429.8)
Tax (expense) on profit/credit on loss
5
(145.0)
16.3
(128.7)
205.3
(16.3)
189.0
Profit/(loss) for the year - attributable to
equity holders of parent
1,428.0
(114.2)
1,313.8
(355.0)
114.2
(240.8)
Earnings/(loss) per ordinary share (€)
Basic
1.1557
(0.2130)
Diluted
1.1529
(0.2130)
Weighted avg. no. of ord. shares (in Ms)
Basic
1,136.8
1,130.5
Diluted
1,139.6
1,130.5
*"+" is favourable and "-" is adverse year-on-year.
Ryanair Holdings plc and Subsidiaries
Condensed Consolidated Preliminary Statement of Comprehensive
Income for year ended March 31, 2023 (unaudited)
Year
Year
Ended
Ended
Mar 31,
Mar 31,
2023
2022
€M
€M
Profit/(loss) for the year
1,313.8
(240.8)
Other comprehensive (loss)/income:
Items that are or may be reclassified subsequently to profit or
loss:
Movements in hedging reserve, net of tax:
Net movement in cash-flow hedge reserve
(1,264.0)
1,084.1
Other comprehensive (loss)/income for the year, net of income
tax
(1,264.0)
1,084.1
Total comprehensive income for the year - attributable to equity
holders of parent
49.8
843.3
Ryanair Holdings plc and Subsidiaries
Condensed Consolidated Preliminary Statement of Cash Flows for year
ended March 31, 2023 (unaudited)
Year
Year
Ended
Ended
Mar 31,
Mar 31,
2023
2022
Note
€M
€M
Operating activities
Profit/(loss) after tax
1,313.8
(240.8)
Adjustments to reconcile profit/(loss) after tax to net cash from
operating activities
Depreciation
923.2
719.4
(Increase) in inventories
(1.7)
(0.7)
Tax expense on profit/(credit) on loss
128.7
(189.0)
Share based payments
16.2
8.6
(Increase) in trade receivables
(16.2)
(24.9)
(Increase) in other assets
(482.0)
(241.4)
Increase in trade payables
31.2
284.6
Increase in accrued expenses and other liabilities
1,788.9
1,722.8
Increase in provisions
33.7
45.5
Decrease/(increase) in finance expense
4.2
(7.3)
Increase in finance income
10.4
0.7
Foreign exchange and fair value*
144.7
(146.5)
Income tax (paid)/received
(4.1)
9.5
Net cash inflow from operating activities
3,891.0
1,940.5
Investing activities
Capital expenditure - purchase of property, plant and
equipment
9
(1,914.7)
(1,181.6)
Disposal proceeds
9
4.9
110.5
Supplier reimbursements
9
127.5
113.9
Decrease in restricted cash
3.2
11.4
(Increase) in financial assets: cash > 3 months
(122.1)
(468.6)
Net cash (used in) investing activities
(1,901.2)
(1,414.4)
Financing activities
Net proceeds from shares issued
12
31.7
46.8
Proceeds from long term borrowings
-
1,192.0
Repayments of long term borrowings
(1,039.4)
(1,722.3)
Lease liabilities paid
(46.3)
(53.0)
Net cash (used in) financing activities
(1,054.0)
(536.5)
Increase/(decrease) in cash and cash equivalents
935.8
(10.4)
Net foreign exchange gains/(losses)
(5.5)
28.7
Cash and cash equivalents at beginning of the year
2,669.0
2,650.7
Cash and cash equivalents at end of the year
3,599.3
2,669.0
Included in the cash flows from operating activities for the year
are the following amounts:
Interest
income received
52.7
-
Interest
expense paid
(75.0)
(86.6)
*Includes an exceptional loss of €130.5M pre-tax,
attributable to the fair value measurement of jet fuel call
options.
Ryanair Holdings plc and Subsidiaries
Condensed Consolidated Preliminary Statement of Changes in
Shareholders' Equity for year ended March 31, 2023
(unaudited)
Issued
Share
Other
Other
Ordinary
Share
Premium
Undenom.
Retained
Reserves
Other
Shares
Capital
Account
Capital
Earnings
Hedging
Reserves
Total
M
€M
€M
€M
€M
€M
€M
€M
Balance at April 01, 2021
1,128.1
6.7
1,161.6
3.5
3,232.3
211.3
31.2
4,646.6
Loss for the year
-
-
-
-
(240.8)
-
-
(240.8)
Other comprehensive (loss)/income
Net movements in cash-flow reserve
-
-
-
-
-
1,084.1
-
1,084.1
Total other comprehensive income
-
-
-
-
-
1,084.1
-
1,084.1
Total comprehensive (loss)/income
-
-
-
-
(240.8)
1,084.1
-
843.3
Transactions with owners of the
Company recognised directly in equity
Issue of ordinary equity shares
6.5
0.1
112.2
-
(65.5)
-
-
46.8
Additional share premium on the allotment of shares
-
-
54.4
-
(54.4)
-
-
-
Share-based payments
-
-
-
-
-
-
8.6
8.6
Transfer of exercised and expired share based awards
-
-
-
-
9.3
-
(9.3)
-
Balance at March 31, 2022
1,134.6
6.8
1,328.2
3.5
2,880.9
1,295.4
30.5
5,545.3
Profit for the year
-
-
-
-
1,313.8
-
-
1,313.8
Other comprehensive income/(loss)
Net movements in cash-flow reserve
-
-
-
-
-
(1,264.0)
-
(1,264.0)
Total other comprehensive loss
-
-
-
-
-
(1,264.0)
-
(1,264.0)
Total comprehensive income/(loss)
-
-
-
-
1,313.8
(1,264.0)
-
49.8
Transactions with owners of the
Company recognised directly in equity
Issue of ordinary equity shares
4.1
0.1
51.7
-
(20.1)
-
-
31.7
Share-based payments
-
-
-
-
-
-
16.2
16.2
Transfer of exercised and expired share based awards
-
-
-
5.4
-
(5.4)
-
Balance at March 31, 2023
1,138.7
6.9
1,379.9
3.5
4,180.0
31.4
41.3
5,643.0
MD&A
Year Ended March 31, 2023 ("FY23")
Introduction
The Group
experienced a significant reduction in traffic during the prior
year as a result of European Government's Covid-19 travel
restrictions/lockdowns. The damaging impact of the Omicron variant
and Russia's invasion of Ukraine in H2 FY22 necessitated
significant fare stimulation. Sectors (+52%) and traffic (+74%) are
therefore significantly higher in the year ended March 31, 2023.
The following discussion should be read in that
context.
For the
purposes of the Management Discussion and Analysis ("MD&A")
(with the exception of the balance sheet commentary) all figures
and comments are by reference to the FY23 results excluding the
exceptional item referred to below.
The
Group, as part of its risk management strategy, utilised jet fuel
call options to set a maximum price for approximately 16% of FY23
expected fuel requirements. These instruments were measured at fair
value through the income statement. Following the unexpected
Russian invasion of Ukraine in February 2022, the price of jet fuel
significantly increased. An exceptional unrealised mark-to-market
loss of €114.2M (post-tax) was recorded on the Group's jet
fuel call options for the year. This is a timing unwind of the
exceptional unrealised mark-to-market gain recorded for the year
ended March 31, 2022.
Income Statement
Scheduled
revenues:
Scheduled
revenues increased 161% to
€6.93BN due to a 74% increase in traffic, from
97.1M to 168.6M and 50% higher average fares at €41 (up 10%
on pre Covid-19).
Ancillary revenues:
Ancillary
revenues increased 79% to
€3.84BN (approx. €22.80 per passenger) as
traffic grew (up 74%) and guests increasingly chose discretionary
services such as priority boarding, reserved seating and in-flight
sales.
Total revenues:
As a
result of the above, total revenues increased 124% to €10.78BN.
Operating Expenses:
Fuel and oil:
Fuel
and oil increased 113%
to €3.90BN due to a 52% increase
in sectors flown and higher jet fuel prices offset by favourable
hedging and fuel burn savings on the new B737-8200
aircraft.
Airport and handling charges:
Airport
and handling charges rose 53%
to €1.24BN, in line with the 52% increase in sectors
and well below 74% traffic growth.
Staff
costs:
Staff
costs increased 73% to
€1.19BN due to the larger fleet, the ramp up of
activities, accelerated pay restoration during the year and the
roll-off of Covid-19 payroll support schemes.
Depreciation:
Depreciation
increased 28% to €0.92BN, primarily due to
higher amortisation resulting from higher aircraft utilisation
(sectors up 52%) and the delivery of 37 new
B737-8200 "Gamechanger" aircraft.
Route
charges:
Route
charges increased 64% to
€0.90BN, ahead of the 52% increase in sectors, due to
higher Eurocontrol and ATC rates (despite a degradation in the
quality of services provided by ATC agencies during the
year).
Marketing, distribution and other:
Marketing,
distribution and other rose 64% to €0.67BN due to higher
activity (including increased in-flight sales and credit card
transactions).
Maintenance, materials and repairs:
Maintenance,
materials and repairs increased 46% to €0.37BN due to higher
aircraft utilisation.
Other expense:
Net
finance expenses decreased 62%
to €34.4M due to rising deposit interest rates,
higher cash balances and lower debt (at mainly fixed interest
rates). Movements in foreign exchange translation reflect changes
primarily in the movements of the €/US$ exchange rate on
balance sheet revaluations.
Balance sheet:
Gross
cash increased €1.05BN
to €4.68BN at March 31, 2023.
Gross
debt decreased €0.96BN
to €4.12BN, primarily due to over €1BN debt
repayments during the year, offset by the extension of 24 A320
leases.
Net
cash was €0.56BN at March 31, 2023, a strong recovery from
€1.45BN net debt at March 31, 2022. FY23 Capex of
€1.91BN was over €0.4BN lower than originally expected
due to the late delivery of new aircraft (which are now expected to
deliver in FY24).
Shareholders'
equity:
Shareholders'
equity increased €97.7M
to €5.64BN primarily due to €1.31BN net
profit (post-exceptional item) offset by an IFRS hedge accounting
decrease in derivatives of €1.26BN.
Ryanair
Holdings plc and Subsidiaries
Notes
forming Part of the Condensed Consolidated
Preliminary
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 preliminary financial statements
for the year ended March 31, 2023 comprise the results of the
Company and its subsidiaries (together referred to as the
"Group").
The March 31, 2023
figures and the March 31, 2022 comparative figures do not include
all of the information required for full annual financial
statements and therefore 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, 2022, 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 unaudited condensed consolidated preliminary financial
statements for the year ended March 31, 2023 on May 18,
2023.
Except as stated
otherwise below, the condensed consolidated preliminary financial
statements for the year ended March 31, 2023 have 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).
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, 2022 and therefore have been applied by the Group in
these condensed consolidated preliminary financial
statements:
●
Amendments to IFRS
3 Business Combinations; IAS 16 Property, Plant and Equipment; IAS
37 Provisions, Contingent Liabilities and Contingent Assets; and
Annual Improvements 2018-2020 (effective for periods starting on or
after January 1, 2022).
The adoption of
these new or amended standards did not have a material impact on
the Group's financial position or results in the year ended March
31, 2023.
New IFRS standards and amendments issued but not yet
effective
The
following new or amended standards and 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 these new or revised standards and
interpretations will have a material impact on our financial
position or performance:
●
Amendments to IAS
12 Income Taxes:
Deferred Tax related to Assets and Liabilities arising from a
Single Transaction (effective on or after January 1,
2023).
●
Amendments to IAS
8 Accounting Policies,
Changes in Accounting Estimates and Errors: Definition of
Accounting Estimates (effective on or after January 1,
2023).
●
Amendments to IAS
1 Presentation of Financial Statements and IFRS Practice
Statement 2: Disclosure of Accounting policies (effective on or
after January 1, 2023).
●
Amendments to IAS
1 Presentation of Financial Statements: Classification of
Liabilities as Current or Non-current, Classification of
Liabilities as Current or Non-current - Deferral of Effective Date,
and Non-current Liabilities with Covenants (effective on or after
January 1, 2024)*.
●
IFRS
17 Insurance Contracts (effective on or after January 1,
2023).
●
Amendments to IFRS
17 Insurance contracts: Initial Application of IFRS 17 and IFRS 9 -
Comparative Information (effective on or after January 1,
2023).
●
Amendments to IFRS
16 Leases: Lease Liability in a Sale and Leaseback (effective on or
after January 1, 2024)*.
* These
standards or amendments to standards are not as of yet EU
endorsed.
2. Board of
Directors
Details of the
members of the Company's Board of Directors are set forth on page
17 of the Group's 2022 Annual Report. Julie O'Neill retired from
the Board in September 2022. Anne Nolan was appointed to the Board
in December 2022 and both Eamonn Brennan and Elisabeth
Köstinger joined the Board in April 2023.
Following extensive
engagement with larger shareholders, the Board agreed a contract
extension which will see Michael O'Leary ("MOL") remain as Group
CEO until the end of July 2028 (previously July 2024). An amended
remuneration policy, reflecting changes to MOL's share options
granted in 2019 (vesting period now extended to 2028 from 2024),
will be tabled at the Company's 2023 AGM.
3. 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 preliminary financial statements, the
significant judgements and key sources of estimation uncertainty
were the same as those that were applied in the most recent
published consolidated financial statements.
Derivative financial instruments
The Group uses
various derivative financial instruments to manage its exposure to
market risks, including the risks relating to fluctuations in
commodity prices and currency exchange rates. Ryanair uses forward
swap contracts and options for the purchase of its jet fuel (jet
kerosene) and carbon credit (Emission Trading Scheme) requirements
to reduce its exposure to commodity price risk. It also uses
foreign currency forward contracts to reduce its exposure to risks
related to foreign currencies, principally the U.S. dollar exposure
associated with the purchase of new Boeing 737-8200 aircraft and
the U.S. dollar exposure associated with the purchase of jet
fuel.
The Group's
derivative financial instruments are measured at fair value and
recognised as either assets or liabilities in its consolidated
balance sheet.
At March 31, 2023
all derivatives are designated as cash flow hedges. With the
exception of the time value of jet fuel call options, all gains and
losses are taken to other reserves. The time value of jet fuel call
options is excluded from the designated hedging instrument, with
movements in time value recognised in the income statement. At
March 31, 2023, a net liability of €326M (2022: net asset of
€1.20BN) was recognised on balance sheet in respect of the
Group's jet fuel forward contracts, foreign currency derivative
instruments associated with future jet fuel purchases and carbon
credits and a net asset of €261M (2022: net asset
€330M) was recognised in respect of its foreign currency
derivative instruments associated with future aircraft
purchases.
In determining the
hedge effectiveness of derivative instruments used to hedge
Ryanair's fuel requirements, there is significant judgement
involved in assessing whether the volumes of jet fuel hedged are
still expected to be highly probable forecast transactions.
Specifically, significant judgement is required in respect of the
assumptions related to the future number of sectors and sector
length. All of these assumptions impact upon forecast fuel
consumption, and changes to these assumptions could have a
significant effect on the assessment of hedge
effectiveness.
In respect of
foreign currency hedge effectiveness for future aircraft purchases,
there is a high degree of judgement involved in assessing whether
the future aircraft payments are still considered highly probable
of occurring, and the timing of these future payments for aircraft.
The timing of future payments for aircraft is dependent on the
aircraft manufacturer's ability to meet forecast aircraft delivery
schedules.
As at March 31,
2023 the Group had entered into jet fuel forward contracts covering
approximately 75% of its estimated requirements for fiscal year
2024 (with a further 5% covered by jet fuel call options) and
approximately 14% of its estimated requirements for H1 fiscal year
2025. The Group believes these hedges to be effective for hedge
accounting purposes.
Long-lived assets - Useful lives, residual values and
impairment
At March 31, 2023,
the Group had €9.91BN of property, plant and equipment
long-lived assets, of which €9.73BN were aircraft. In
accounting for long-lived assets, the Group must make estimates
about the expected useful lives of the assets and the expected
residual values of the assets.
In determining the
useful lives and expected residual values of the aircraft, the
Group has based the estimates on a range of factors and
assumptions, including its own historic experience and past
practices of aircraft disposal and renewal programmes, forecasted
growth plans, external valuations from independent appraisers,
recommendations from the aircraft supplier and manufacturer and
other industry-available information.
The Group's
estimate of each aircraft's residual value is 15% of the current
market value of new Boeing 737 aircraft, and each aircraft's useful
life is determined to be 23 years.
Revisions to these
estimates could be caused by changes to maintenance programmes,
changes in utilisation of the aircraft, governmental regulations on
ageing aircraft, changes in new aircraft technology, changes in
governmental and environmental taxes, changes in new aircraft fuel
efficiency and changing market prices for new and used aircraft of
the same or similar types. The Group therefore evaluates its
estimates and assumptions in each reporting period, and, when
warranted, adjusts these assumptions. Any adjustments are accounted
for on a prospective basis through depreciation
expense.
On acquisition a
judgement is made to allocate an element of the cost of an acquired
aircraft to the cost of major airframe and engine overhauls,
reflecting its service potential and the maintenance condition of
its engines and airframe. This cost, which can equate to a
substantial element of the total aircraft cost, is amortised over
the shorter of the period to the next maintenance check (usually
between 8 and 12 years) or the remaining life of the
aircraft.
4. 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.
5. Income tax
expense
The Group's
consolidated tax expense for the year ended March 31, 2023 of
€129M (March 31, 2022: tax credit of €189M) comprises a
current tax charge of €23M (March 31, 2022: current tax
credit of €10M) and a deferred tax charge of €106M
(March 31, 2022: deferred tax credit of €179M) primarily
relating to the temporary differences for property, plant and
equipment and net operating losses. This consolidated tax
charge is the aggregation of separate tax charges and tax credits
on the profits earned and losses suffered by each of the Group's
operating companies calculated in accordance with differing tax
rules and rates applicable in each jurisdiction where the Group
operates. The effective tax rate of 9% for the year (March
31, 2022: 44% credit) is the result of the mix of profits and
losses incurred by Ryanair's operating subsidiaries primarily in
Ireland, Malta, Poland and the U.K.
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 March 31, 2023
the Group had an operating fleet of 509 (2022: 471) Boeing 737s and
28 (2022: 29) Airbus A320 aircraft. In September 2014, the Group
agreed to purchase up to 200 (100 firm and 100 options) Boeing
737-8200 aircraft which was subsequently increased to 210 (135 firm
and 75 options). In December 2020, the Group increased its firm
orders from 135 to 210 Boeing 737-8200 aircraft. At March 31, 2023,
the Group had taken delivery of 98 of these aircraft. The remaining
aircraft are due to be delivered before the end of fiscal year
2025.
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).
The Group currently
comprises five separate airlines, Buzz, Lauda Europe (Lauda), Malta
Air, Ryanair DAC and Ryanair UK Limited (which is currently
consolidated within Ryanair DAC). Ryanair DAC is reported as a
separate segment as it exceeds the applicable quantitative
thresholds for reporting purposes. Malta Air is reported as
a separate segment as it exceeded the
applicable quantitative thresholds for reporting purposes for the
year ended March 31, 2022, and is included for comparative
purposes. Buzz and Lauda do not individually exceed the
quantitative thresholds and accordingly are presented on an
aggregate basis as they exhibit similar economic characteristics
and their services, activities and operations are sufficiently
similar in nature. The results of these operations are included as
'Other Airlines.'
The CODM assesses
the performance of the business based on the profit/(loss) after
tax of each airline for the reporting period. Resource allocation
decisions for all airlines are based on airline performance for the
relevant period, with the objective in making these resource
allocation decisions being to optimize consolidated financial
results. Reportable segment information is presented as
follows:
Year Ended
Ryanair DAC
Malta Air
Other Airlines
Elimination
Total
Mar 31,
Mar 31,
Mar 31,
Mar 31,
Mar 31,
2023
2023
2023
2023
2023
€M
€M
€M
€M
€M
Scheduled
revenue
6,843.4
-
86.9
-
6,930.3
Ancillary
revenue
3,844.9
-
-
-
3,844.9
Inter-segment
revenue
759.4
868.8
425.7
(2,053.9)
-
Segment
revenue
11,447.7
868.8
512.6
(2,053.9)
10,775.2
Reportable segment profit after income tax (i)
1,382.3
10.1
35.6
-
1,428.0
Other segment information:
Net
Finance Expense
27.8
-
6.6
-
34.4
Depreciation
876.6
-
46.6
-
923.2
Capital
Expenditure
1,760.1
-
153.0
-
1,913.1
Segment
assets
15,920.4
90.4
395.1
-
16,405.9
Segment
liabilities
9,914.7
96.0
752.2
-
10,762.9
(i) Reportable segment profit after income tax in the financial
year ended March 31, 2023, excludes a net exceptional loss after
tax of €114M, attributable to the fair value measurement of
jet fuel call options.
Year Ended
Ryanair DAC
Malta Air
Other Airlines
Elimination
Total
Mar 31,
Mar 31,
Mar 31,
Mar 31,
Mar 31,
2022
2022
2022
2022
2022
€M
€M
€M
€M
€M
Scheduled revenue
2,616.1
-
36.4
-
2,652.5
Ancillary revenue
2,148.4
-
-
-
2,148.4
Inter-segment revenue
698.5
679.4
406.9
(1,784.8)
-
Segment
revenue
5,463.0
679.4
443.3
(1,784.8)
4,800.9
Reportable segment (loss)/profit after income tax (i)
(354.7)
5.9
(6.2)
-
(355.0)
Other segment information:
Net Finance Expense
87.8
-
3.6
-
91.4
Depreciation
660.1
-
59.3
-
719.4
Capital Expenditure
1,527.8
-
5.0
-
1,532.8
Segment assets
14,832.1
69.6
248.1
-
15,149.8
Segment liabilities
8,879.3
85.3
639.9
-
9,604.5
(i) Reportable segment (loss)/profit after income tax in the
financial year ended March 31, 2022, excludes a net exceptional
gain after tax of €114M, attributable to the fair value
measurement of jet fuel call options.
The following table
disaggregates revenue by primary geographical market. In accordance
with IFRS 8, revenue by country of origin has been provided where
revenue for that country is in excess of 10% of total revenue.
Ireland is presented as it represents the country of domicile.
"Other" includes all other countries in which the Group has
operations.
Year Ended
Mar 31, 2023
Year Ended
Mar 31, 2022
€M
€M
Italy
2,364.5
1,188.8
Spain
1,883.4
873.8
United
Kingdom
1,589.7
564.0
Ireland
640.4
229.6
Other
4,297.2
1,944.7
Total
revenue
10,775.2
4,800.9
Ancillary revenues
comprise revenues from non-flight scheduled operations, in-flight
sales and internet-related services. Non-flight scheduled revenue
arises from the sale of priority boarding, allocated seats, car
hire, travel insurance, airport transfers, room reservations and
other sources, including excess baggage charges and other fees, all
directly attributable to the low-fares business.
The vast majority
of ancillary revenue is recognised at a point in time, which is
typically the flight date. The economic factors that would impact
the nature, amount, timing and uncertainty of revenue and cashflows
associated with the provision of passenger travel-related ancillary
services are homogeneous across the various component categories
within ancillary revenue. Accordingly, there is no further
disaggregation of ancillary revenue required in accordance with
IFRS 15.
9. Property, plant
and equipment
Acquisitions and disposals
During the year
ended March 31, 2023, net capital additions amounted to
€1.66BN principally reflecting aircraft deliveries in the
year, aircraft pre-delivery deposits and capitalised maintenance
offset by supplier reimbursements of approximately €128M.
Right of Use assets (reflecting A320 aircraft operating lease
extensions) increased by €75M in the year.
10. Related party
transactions
The Company's
related parties comprise its subsidiaries, Directors and key
management personnel. All transactions with subsidiaries eliminate
on consolidation and are not disclosed.
There were no
related party transactions in the year ended March 31, 2023 that
materially affected the financial position or the performance of
the Group during that year and there were no changes in the related
party transactions described in the 2022 Annual Report that could
have a material effect on the financial position or performance of
the Group in the same period.
11. 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 condensed consolidated
preliminary 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
2022 Annual Report. There have been no changes in our risk management
policies in the period.
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 their fair value, taking into
account current market inputs and rates. The Group's credit risk
and counterparty's credit risk is taken into account when
establishing fair value (Level 2).
●
Derivatives - currency forwards, jet fuel
forward contracts and carbon contracts: A comparison of the
contracted rate to the market rate for contracts providing a
similar risk profile at March 31, 2023 has been used to establish
fair value. The Group's credit risk and counterparty's credit risk
is taken into account when establishing fair value (Level
2).
●
Derivatives - jet fuel call
options: The fair value of jet
fuel call options is determined based on standard option pricing
valuation models (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 year ended March 31, 2023,
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
the Group is committed to make have been discounted at the relevant
market rates of interest applicable (including credit spreads) at
March 31, 2023 to arrive at a fair value representing the amount
payable to a third party to assume the obligations.
The
fair value of financial assets and financial liabilities, together
with the carrying amounts in the condensed consolidated preliminary
balance sheet, are as follows:
At Mar 31,
At Mar 31,
At Mar 31,
At Mar 31,
2023
2023
2022
2022
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
53.2
53.2
160.4
160.4
- Jet fuel & carbon derivative forward contracts
-
-
22.2
22.2
- Interest rate swaps
1.4
1.4
2.5
2.5
54.6
54.6
185.1
185.1
Current financial assets
Derivative financial instruments:
- U.S. dollar currency forward contracts
226.2
226.2
313.7
313.7
- Jet fuel options
14.1
14.1
150.5
150.5
- Jet fuel & carbon derivative forward contracts
49.6
49.6
934.1
934.1
- Interest rate swaps
2.2
2.2
2.1
2.1
292.1
292.1
1,400.4
1,400.4
Trade receivables*
59.7
43.5
Cash and cash equivalents*
3,599.3
2,669.0
Financial asset: cash > 3 months*
1,056.2
934.1
Restricted cash*
19.5
22.7
5,026.8
292.1
5,069.7
1,400.4
Total financial assets
5,081.4
346.7
5,254.8
1,585.5
At Mar 31,
At Mar 31,
At Mar 31,
At Mar 31,
2023
2023
2022
2022
Carrying
Fair
Carrying
Fair
Amount
Value
Amount
Value
Non-current financial liabilities
€M
€M
€M
€M
Derivative financial instruments:
- Jet fuel & carbon derivative contracts
8.1
8.1
-
-
- U.S. dollar currency forward contracts
3.1
3.1
-
-
11.2
11.2
-
-
Non-current maturities of debt
- Long-term debt
812.3
812.3
924.8
927.1
- Bonds
2,040.9
1,928.4
2,789.8
2,792.1
2,853.2
2,740.7
3,714.6
3,719.2
Trade payables
-
-
49.2
49.2
2,864.4
2,751.9
3,763.8
3,768.4
Current financial liabilities
Derivative financial instruments:
- Jet fuel & carbon derivative contracts
341.7
341.7
7.6
7.6
- U.S. dollar currency forward contracts
44.9
44.9
31.0
31.0
386.6
386.6
38.6
38.6
Current maturities of debt:
- Short-term debt
76.8
76.8
152.1
152.1
- Promissory notes
230.6
230.6
225.9
225.9
- Bonds
749.3
744.3
846.5
855.0
1,056.7
1,051.7
1,224.5
1,233.0
Trade payables*
1,065.5
1,029.0
Accrued expenses*
1,276.6
953.0
3,785.4
1,438.3
3,245.1
1,271.6
Total financial liabilities
6,649.8
4,190.2
7,008.9
5,040.0
*The fair value of these financial instruments approximate their
carrying values due to the short-term nature of the
instruments.
During the year
ended March 31, 2022, the Group issued promissory notes with a
cumulative value of approximately €231M, that mature in
October 2023. These notes were issued in settlement of certain
aircraft trade payables and are non-interest bearing. The carrying
value of the promissory notes is not considered to be materially
different from its fair value.
During the year
ended March 31, 2023 the Group repaid the maturing €850M
(2015) Eurobond issued at a coupon of 1.125%.
12.
Shareholders' equity and shareholders' returns
During the year
ended March 31, 2023 4.1M ordinary shares were issued at strike
prices between €6.25 and €12.00 per share following the
exercise of vested options for total proceeds of €31.7M.
There were no shareholder returns during the year ended March 31,
2023.
13.
Going concern
The Directors,
having made inquiries, believe that the Group has adequate
resources to continue in operational existence for at least the
next 12 months and that it is appropriate to adopt the going
concern basis in preparing these consolidated preliminary financial
statements. The continued preparation of the Group's condensed
consolidated preliminary financial statements on the going concern
basis is supported by the financial projections prepared by the
Group.
In arriving at this
decision to adopt the going concern basis of accounting, the Board
has considered, among other things:
●
The Group's net
profit (pre-exceptional items) of €1.43BN in the year ended
March 31, 2023;
●
The Group's
liquidity, with €4.68BN cash at March 31, 2023, a
€2.01BN improvement from €1.45BN net debt at March 31,
2022 to net cash of €0.56BN at March 31, 2023 and the Group's
continued focus on cash management;
●
The Group's solid
BBB+ credit rating from S&P and BBB (positive outlook) credit
rating from Fitch;
●
The Group's strong
balance sheet position with 99% of its B737 fleet
unencumbered;
●
The Group's access
to the debt capital markets, unsecured/secured bank debt and sale
and lease back transactions;
●
Strong cost control
across the Group;
●
The Group's fuel
hedging position (FY24 fuel requirements are over 80% hedged and
approximately 14% of H1 FY25 jet fuel requirements are hedged at
March 31, 2023); and
●
The Group's
ability, as evidenced throughout the Covid-19 crisis, to preserve
cash and reduce operational and capital expenditure in a
downturn.
14.
Post balance sheet events
●
In May, the Group
ordered 300 (150 firm and 150 options) new Boeing 737-Max-10
aircraft for delivery between 2027 and 2033. This order is subject
to shareholder approval at Ryanair's 2023 AGM. When finalised (and
subject to all options being exercised) the order is valued at over
US$40bn at current list prices.
●
In May, the Group
refinanced its unsecured €750m syndicated term loan (maturity
May 2024) with an unsecured €750M revolving credit facility
(at a lower margin) maturing in May 2028.
[1] Sustainalytics - a leading independent ESG &
corporate governance research, ratings & analytics
firm.
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.
