Dufry and Autogrill merger yields $2.66 billion in Q1 consolidated revenue

Dufry and Autogrill merger yields $2.66 billion in Q1 consolidated revenue

May 11, 2023 : The merger between travel retailer Dufry and global travel food and beverage operator Autogrill has yielded positive results. The new entity experiencing substantial organic growth of 51.5% in the first quarter, driving combined turnover to 2.36 billion Swiss francs ($2.66 billion). CEO Xavier Rossinyol attributed this success to the ongoing momentum in the travel sector, with April net sales continuing to perform well compared to 2022 and surpassing 2019 levels at constant exchange rates.

The rebounding air travel market and increasing global passenger demand have contributed to Dufry’s growth across its four regions: Europe, Middle East and Africa (EMEA); North America; Latin America; and Asia-Pacific. EMEA, the largest revenue contributor accounting for 45% of sales, achieved impressive growth of 58%, mainly driven by leisure traffic. Popular holiday destinations such as Turkey, Greece, and Morocco performed exceptionally well. Dufry also secured or extended retail and food and beverage concessions at various airports, including Helsinki in Finland and the Netherlands.

In North America, revenue reached $878 million (33% of the total), benefiting from a robust domestic travel market in the United States. However, Canada faced challenges due to reduced Chinese travellers. Dufry’s partnership with Amazon’s Just Walk Out technology expanded Hudson’s Nonstop stores to eight locations, with the latest opening at Charleston International Airport. Additionally, Dufry was awarded a long-term duty-free contract at Boston Logan Airport and obtained extensions for its duty-paid business at the same location. Long-term retail and food and beverage contracts were also secured at Oakland International Airport.

Latin America contributed 16% of revenue, while Asia Pacific accounted for 6%, with strong performances observed in Argentina, Mexico, and the Caribbean.

Dufry has achieved a more balanced business portfolio, with duty-free accounting for 38% of turnover, duty-paid/convenience retail for 26%, and food and beverage for 36% in the first quarter. The airport channel remains dominant, comprising 84% of the business, although Dufry has diversified its portfolio to include motorways.

As the summer vacation season approaches, Dufry and its European counterparts can anticipate further growth, with regional airports witnessing seat capacity surpassing pre-pandemic levels. The company remains vigilant regarding potential geopolitical, macroeconomic, and operational changes that may impact the industry.

Dufry’s strengthened financial position, reduced leverage, and increased flexibility have been recognized by credit rating agencies, leading to positive credit rating upgrades. With net debt at $3.4 billion as of March, Dufry is well-positioned for the second quarter and remains committed to monitoring market dynamics and consumer sentiment.