Dufry’s Biggest Regions See Slowest Growth In Q3, But Retain Double Digits

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Dufry's World Duty Free shop astatine London Gatwick Airport.

Kevin Rozario

North America had nan slowest location maturation successful nan 3rd 4th for nan recreation food-to-retail combination of Dufry-Autogrill—soon to beryllium renamed Avolta—but income roseate successful double digits, up 11.1% like-for-like arsenic nan U.S. airdrome marketplace continued to spot coagulated request from home and world travel.

Dufry’s Canadian business besides benefited from nan return of immoderate Asian travelers during nan period, though it is not expected to spot a speedy ramp-up any clip soon successful either market.

Third 4th proforma turnover successful North America—which accounts for 31% of nan company’s sales—hit $1.19 cardinal (1,081.3 cardinal Swiss francs) helped by nan opening of respective stores astatine Las Vegas Valley’s Harry Reid Airport, wherever Dufry has a statement hold done 2038; and nan opening of duty-free units astatine Boston Logan Airport’s modernized world Terminal E wherever Dufry was precocious awarded a 12-year concession.

It was besides a engaged play for nutrient and beverage (F&B) openings astatine U.S. gateways including Chicago O’Hare, Hartsfield-Jackson Atlanta, Orlando, Jacksonville, Fort Lauderdale-Hollywood, and San José.

Dufry-Autogrill saw nan champion maturation of 45% successful Asia-Pacific, its smallest market, wherever gross reached $149 cardinal successful Q3, driven chiefly by home and intra-regional travel, and immoderate slow returning world traffic. In China, Dufry precocious announced that it was forming a associated task pinch Hubei Airport Group to run nan maestro concession for unit and F&B astatine Wuhan Tianhe Airport’s Terminal 2. The airdrome served 27 cardinal passengers successful 2019.

The company’s biggest region of Europe, Middle East and Africa (EMEA) managed maturation of 12.3% to $2.21 cardinal successful Q3. In EMEA, which has a 52% stock of sales, leisure request helped some recreation unit and F&B income crossed destinations successful Southern Europe, pinch nan Mediterranean proving to beryllium nan apical performer. Dufry said that nan United Kingdom, nan Nordics and Central Europe each benefited from expanding world inbound travel, including returning travelers from Asia-Pacific.

Dufry has invested successful nan improvement of a high-end perfumery concept.

Kevin Rozario

Among nan EMEA openings and upgrades during Q3, 1 of nan astir important was Dufry’s Haute Perfumery conception which opened astatine Zurich Airport, pinch respective different locations pipelined.

Across nan full business, Dufry-Autogrill saw like-for-like turnover turn by 14.3% successful nan 3rd 4th to scope conscionable complete $4 cardinal (3,668.1 cardinal Swiss francs).

Name alteration imminent

In a connection connected Thursday, Xavier Rossinyol, CEO of Dufry Group, said: “Our Q3 2023 trading update will beryllium nan last group of results shared nether nan sanction Dufry Group. Pending nan support of our shareholders astatine tomorrow’s EGM, nan Dufry-Autogrill business operation will go a visibly unified institution nether our caller sanction Avolta.”

Commenting connected nan quarterly result, nan CEO said it was driven by “robust demand, beardown execution and nan broadest portfolio successful nan industry.” Cost guidance continues while early action connected synergies betwixt Dufry and Autogrill has paid off. “We person precocious connected nan integration, pinch our rebranding to Avolta arsenic nan last step, generating afloat run-rate synergies of 85 cardinal Swiss francs ($94 million) already, 1 twelvemonth up of plan,” said Rossinyol.

He added that if nan company’s existent capacity continued into nan last quarter, “we task afloat twelvemonth 2023 integrated maturation of astir 20% versus nan erstwhile twelvemonth turnover for nan proforma mixed business of 10,805 cardinal Swiss francs ($11.9 billion).”

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