Dufry delivers strong results with Turnover of CHF 5.7 billion, 31.5% Organic Growth, and successfully completes Autogrill combination

• CORE Turnover¹ reached CHF 5,715.2 million, with a combined Organic Growth of 31.5% versus 2022

• Reported Turnover of CHF 5,823.6 million achieved by the consolidated business

• Underlying momentum for travel into HY2, with July Turnover (periodic) estimated at plus 17.0% versus 2022 and plus 4.7% versus 2019 for the combined Group²

• Delivering CORE EBITDA of CHF 491.8 million, with an 8.6% margin, and Operating Profit of CHF 322.0 million

• Strong cash flow performance with Operating Cash Flow of CHF 1,091.5 million and Equity Free Cash Flow (EFCF) of CHF 165.1 million

Xavier Rossinyol, CEO of Dufry Group, commented: “Today’s results underline the solid performance of Dufry and Autogrill and, even more, our potential as One Company. They are an early indication of what we can achieve when acting as One Team, united by a shared vision and led by clear objectives. 

Together, we have delivered another strong set of results, driven by an uninterrupted demand for travel and the outstanding execution of our teams. Dufry and Autogrill achieved CHF 5,715.2 million CORE Turnover as a combined company, while our CORE EBITDA margin stood at 8.6%, based on our sales performance, our disciplined approach to costs, and the merger synergies. Conversion from EBITDA to Equity Free Cash Flow reached 34%, partly supported by CAPEX phasing into the second half of the year. 

Supported by our results, we believe profitability and cash flow in 2023 will be ahead of forecast with a 30 to 40bps better than expected EBITDA margin and EFCF conversion in the mid-twenties. We say this with prudence; our teams continue to closely monitor any potential changes in business climate and consumer sentiment, and we remain disciplined in our approach to new business development as well as cost and cash management.

We are rapidly advancing on the integration and have successfully concluded the combination with Autogrill, delisting the company from the Italian Stock Exchange. We have defined the combined Group’s organization, ways of working and we are well on track to generate the cost synergies. The benefits of combining our expertise are starting to show; we are offering innovative and hybrid concepts in our tenders, as seen in Spain most recently, where we retain our position as leading travel experience operator. 

Destination 2027 can be seen across the world. From our winning proposal in Spain through to new store openings from Jordan to Brazil, as well as through the launch of new concepts such as mind. body. soul. and Haute Parfumerie, we are changing the way travellers experience retail and F&B. What is truly exciting is that these are early examples of our innovation concepts; we are just beginning to unleash our potential. Behind the scenes we are working on even bigger opportunities, making our stores even more fun, more vibrant, and smarter, adding live events and gamification elements in our customer experience. All to generate value for our shareholders, for our customers, for our concession and brand partners, and for our Company.

The combined Group is also more diversified, both geographically and on business segments, creating scope to address projects on Duty Free, Duty Paid and F&B, as well as exploring combined and hybrid initiatives. Together, we will further accelerate our ESG engagement – visible in our day-to-day operations globally – and are in a position to make a difference for customers, our employees and the communities we work in. 

With all of these developments, I see our talented people at the centre once again. I thank our employees – every one of the over 60,000 – for their motivation and dedication to our day-to-day, and most importantly for their commitment to brighten the journeys of our travellers. Our onward journey remains clear; by revolutionizing the travel experience globally we will continue along our growth trajectory and reinforce our track record of delivery.” 

FINANCIAL SUMMARY

Dufry reports continued growth and resilient demand throughout the first half of 2023. Consolidated Turnover reached CHF 5,823.6 million, and CORE Turnover (excluding fuel sales) 5,715.2 million, translating to CORE Organic Growth of 31.5% for the combined Group against first half 2022, which was still impacted by Covid-related restrictions on travel. New concessions (net) contributed positively with 2.7%. Currency effects on CORE Turnover augmented to -4.7% for the period, mainly related to USD, EUR and GBP.

CORE Turnover Growth

HY 2023 

versus HY

2022 Proforma³

 HY 2023 

versus HY

2022

HY 2022 

versus HY

2021

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28.8%

 32.7%

143.6% 

New concessions, net

2.7%

 2.8%

3.6% 

Organic Growth

31.5%

35.5% 

147.2% 

Change in Scope

-

65.1% 

- 

Growth (CER)⁴

31.5%

100.6% 

147.2% 

FX Impact

-4.7%

-4.9% 

-1.0% 

Growth (AER)⁵

26.7%

95.7%

146.2% 

The combined Group benefited from a balanced split of business lines. Duty-free accounted for 38% of net sales, duty-paid for 31% and F&B for 31%. The airport channel contributed 82% in a more diversified portfolio including motorways, railways, ferries, cruise ships, ports and other channels. 

Reported Gross Profit stood at CHF 3,685.8 million and CORE Gross Profit at CHF 3,679.4 million, with a CORE margin of 64.4% for HY 2023 versus 63.7% (proforma) in HY 2022. The improvement was supported by solid consumer demand, mix effects as well as active and improved commercial management.

CORE EBITDA for the first half of 2023 came in strongly with CHF 491.8 million, at a margin of 8.6% above prior years’ levels of 7.9% (proforma), driven by higher CORE Turnover and CORE Gross Profit, cost discipline considering the challenging macro-environment, and synergies from the merger. 

Dufry’s CORE Operating and net results reflect lower D&A due to prior year pandemic related impairments as well as lower depreciation of PP&E due to lower CAPEX spend. CORE EBIT reached CHF 343.9 million and CORE Net Profit to equity holders CHF 124.0 million. Diluted CORE Earnings per share stood at CHF 1.01.

Looking at IFRS results, Operating Profit improved to CHF 322.0 million in HY 2023. Reported Net Profit to equity holders stood at CHF -27.6 million and diluted Earnings per share at CHF -0.23.

Dufry’s positive P&L results also translated into its cash flow, with Operating Cash Flow reaching CHF 1,091.5 million for the first six months of the year. EFCF amounted to CHF 165.1 million versus CHF 200.4 million for the combined business in 2022. The solid performance was driven by strong CORE EBITDA as well as CAPEX phasing into the second half, and despite neutral working capital changes versus an inflow of CHF 60.6 million (proforma) related to the recovery pattern during HY 2022. CAPEX came in at 3.2% of CORE Turnover during HY; Dufry confirms CAPEX expectation of around 4% in the mid-term, with some CAPEX moving from HY1 to HY2 this year.

The combined Group’s net debt stood at CHF 2,805 million as of end-June 2023. Available liquidity amounted to CHF 2,814.3 million, including CHF 1,006.9 million in cash and cash equivalents and CHF 1,807.4 million undrawn debt under its Revolving Credit Facility (RCF) at the end of June 2023. During HY, Dufry used the RCF’s “Accordion” feature for increased flexibility and to on-board some of Autogrill’s lending banks alongside Dufry’s existing providers. In this way, Dufry increased the facility by overall CHF 576.5 million (EUR 590 million) by the end of June 2023. The same terms and conditions as the initial RCF amount apply.

During the first half 2023, Dufry obtained rating upgrades from both S&P Global Ratings and Moody’s Investors Service based on the company’s strong performance, the continued momentum as well as the successful completion of the business combination with Autogrill. S&P Global Ratings upgraded Dufry’s credit rating to BB, Outlook Stable in July, following an earlier upgrade received already in March. Moody’s Investors Service upgraded Dufry’s credit rating to Ba3 with Outlook Positive in April.

Reconciliation of Dufry’s Alternative Performance Measures and IFRS figures are provided in the Half-Year 2023 Report here. 
 

RECENT DEVELOPMENTS

CORE Turnover, in CHF million

HY 2023

HY 2022

Reported

Growth vs

2022

FX Impact

vs 2022

 Organic

Growth vs

2022

 Organic

Growth

Proforma⁶

vs 2022

Europe, Middle East and Africa

2,744.9

1,463.6

87.5%

-5.4%

38.0%

34.2%

North America

1,865.1

741.0

151.7%

-4.5%

22.4%

21.6%

LATAM

776.5

579.6

34.0%

-3.9%

39.4%

39.4%

Asia Pacific

284.8

76.6

271.8%

-9.5%

220.1%

168.3%

Distribution Centers

43.9

61.8

-29.0%

-0.4%

-28.8%

-28.8%

Dufry Group

5,715.2

2,922.5

95.6%

-4.9%

35.5%

31.5%

CORE Turnover, in CHF million

Q2 2023

Q2 2022

Reported

Growth vs

2022

FX Impact

vs 2022

 Organic

Growth

vs 2022

 Organic

Growth

Proforma⁷ 

vs 2022

Europe, Middle East and Africa

1,699.3

957.8

77.4%

-5.8%

26.8%

25.0% 

North America

1,083.5

442.9

144.6%

-7.2%

14.1%

14.0% 

LATAM

400.2

325.3

23.0%

-6.9%

32.1%

32.1% 

Asia Pacific

153.7

45.0

241.6%

-8.9%

180.9%

151.9% 

Distribution Centers

19.3

33.0

-41.5%

-0.6%

-40.4%

-40.4% 

Dufry Group

3,355.9

1,804.0

86.0%

-6.3%

25.5%

22.6% 

Reported Turnover in Europe, Middle East and Africa amounted to CHF 2,853.4 million, CORE Turnover⁸ to CHF 2,744.9 million in HY 2023, resulting in combined Organic Growth of 34.2% year-on-year (yoy). The EMEA region’s continued healthy performance was largely driven by leisure demand, with special attention on holiday traffic in South Europe, Middle East and Africa. UK, Northern and Central Europe also contributed positively. Dufry confirmed its position as best partner for Spanish airport operator, Aena, having been awarded operations at Andalusia-Mediterranean, the Balearic Islands, the Canary Islands, Catalonia and Madrid for a period of twelve years, including a total of 21 airports, and representing 100% of the lots tendered for, reinforcing its presence in Spain. Further, Dufry succeeded in winning or extending retail and F&B concessions at other airports including Helsinki Airport (Finland) and Hamad International Airport (Doha; F&B joint venture with Qatar Airways), as well as celebrating openings at, among others, Rome Fiumicino Airport (Italy), Milan Malpensa Airport (Italy), Düsseldorf Airport (Germany) and across The Netherlands. 

North America’s Turnover stood at CHF 1,865.1 million in HY 2023, with Combined Organic Growth of 21.6% yoy. The main performance driver was the strong domestic market in the United States, while Canada continued to be impacted by lower levels of Chinese travellers. In retail, a new Hudson Nonstop, powered by Amazon’s Just Walk Out technology, opened in Washington Dulles International Airport (USA), bringing the total number of Hudson Nonstop stores to nine. In F&B, openings included Toronto Pearson International Airport (Canada), Daniel K. Inouye International Airport, Hawaii, LaGuardia Airport and Jacksonville International Airport (all USA). Additionally, Dufry was awarded a new long-term duty-free contract for Boston Logan International Airport, along with an extension for its duty-paid business there, and was awarded long-term contracts for both retail and F&B at Oakland International Airport (all USA). 

Latin America Turnover stood at CHF 776.5 million in HY 2023 with combined Organic Growth of 39.4% yoy. Best performing markets were Argentina, positively impacted by local currency developments, as well as Mexico and the Caribbean. Brazil saw an upside trend as well. The cruise business continued to recover. New or extended concessions include Vitória Airport (Brazil), where Dufry opened its new duty-paid store, after signing a ten-year contract.

Following the easing of restrictions in China at the beginning of the year, Asia-Pacific saw a significant improvement from its previous year’s low base. China’s re-opening started to benefit from domestic and intra-regional travel, with international travel remaining temporarily impacted by capacity constraints and backlogs in passport issuance. Hong Kong was among the best performing regions. Turnover reached CHF 284.8 million in HY 2023 with combined Organic Growth of 168.3% yoy. New, newly opened or extended concessions include new stores at Chongqing Jiangbei International Airport (China) as well as operations in Bangalore (India), Bali (Indonesia) and Kuala Lumpur (Malaysia).

For the HY 2023 Results Presentation, the HY 2023 financial tables, the Conference Call access and other related information, please visit our dedicated page: https://www.dufry.com/en/HY23 

Cash Flow¹¹

HY 2023

HY 2022

Proforma¹²

HY 2022
Reported

in CHF million

CORE EBITDA

491.8

358.0

227.0

Other non-cash items and changes in lease obligation

25.4

27.8

23.3

Changes in net working capital

26.1

60.6

88.6

Capital expenditures

-184.6

-125.4

-46.7

Cash flow related to minorities

-34.5

-40.9

-22.6

Income taxes paid

-33.4

-12.9

-13.0

Cash flow before financing

290.9

267.2

256.7

Interest, net and other financing items

-125.8

-66.8

-60.0

Equity free cash flow

165.1

200.4

196.7

Acquisition & financing activities, net¹³

-116.1

- 

0.0

Transaction costs

-28.7

- 

- 

FX effect on net debt and other non-cash items

-14.9

- 

-20.7

Decrease/ (Increase) in Financial net debt

5.4

- 

176.1

Net Debt

- Beginning of the period

2,810.8

- 

3,079.5

- End of the period

2,805.4

- 

2,903.4

³Proforma assuming Autogrill consolidated from February 2022 onwards for the comparable period

⁴CER Constant Exchange Rate

⁵AER Actual Exchange Rate

⁶Proforma assuming Autogrill consolidated from February 2022 onwards for the comparable period 

⁷Proforma assuming Autogrill consolidated from February 2022 onwards for the comparable period

⁸Fuel net sales part of EMEA; in all other regions reported and CORE Turnover are identical

⁹Proforma assuming Autogrill consolidated from February 2022 onwards for the comparable period

¹⁰2022 reconciliation provided in Dufry’s HY 2023 report pages I-VI

¹¹IFRS reconciliation provided in Dufry’s HY 2023 report pages I-VI

¹²Proforma assuming Autogrill consolidated from February 2022 onwards for the comparable period; HY 2022 excluding Dufry and Autogrill one-off MAG relief of CHF -78 million and Autogrill US tax refund of CHF -90 million

¹³Acquisition & Financing activities, net consist mainly of the acquisition of net debt from Autogrill, the cash portion of the MTO consideration and purchases of treasury shares