Strong start to the year with 51.5% Turnover Organic Growth in Q1 2023

• Turnover of CHF 2,359.3 million achieved by the consolidated business, representing an increase of 113.4% vs 2022 in constant exchange rate (CER) 

• Organic growth, excluding business combination benefits, at 51.5% year-on-year

• Underlying momentum for travel into Q2, with April net sales (periodic) estimated at plus 30.2% versus 2022 and plus 2.3% versus 2019¹

• Dufry remains vigilant on geo-political, macro-economic, inflation, operational or  consumer sentiment changes

• CORE EBITDA for Q1 2023, seasonally the lowest quarter, came in strongly above prior years’ levels with CHF 134.1 million

• Equity Free Cash Flow (EFCF) outperforming typical seasonal pattern resulting in CHF -137.8 million for Q1 2023 

• Autogrill integration and initiatives to realise full synergies underway; with Mandatory Takeover Offer (MTO) completion progressing as planned 

• Net debt of CHF 3,029.0 million and leverage further reduced to 3.1x net debt/CORE EBITDA as of 31 March 2023 (including last twelve months of Autogrill)

• Comfortable available liquidity position of CHF 2,706.9 million² to facilitate future needs including MTO financing and 2024 senior notes maturity 

• S&P Global Ratings and Moody’s upgraded Dufry’s credit rating to BB- CreditWatch Positive and Ba3 Outlook Positive respectively 
   

Xavier Rossinyol, CEO of Dufry Group, commented: “Today is momentous for Dufry, for our people and our investors. This is our first report as a combined Group; Dufry and Autogrill are now one united company, creating value for all stakeholders together. In our first quarter as a combined business, working together towards our Destination 2027 strategy, we have capitalized on the continued momentum of the travel sector to deliver CHF 2,359.3 million Turnover versus CHF 1,118.5 million last year. This was a solid performance, organically and supported by the business combination. Moreover, April net sales stood at plus 30.2% versus 2022 for the combined Group and were – at constant exchange rates – tracking ahead of 2019 levels over the past two months. 

We are well positioned for quarter two while we maintain our discipline, both in new business development and in cost and cash management. On an external level, our teams closely monitor any potential geo-political, macro-economic, inflation, operational and airport capacity changes, as well as changes in consumer sentiment, adjusting our course to mitigate risk and take advantage of opportunities. 

With leadership representative of both companies, our teams are on track to generate synergies and new commercial concepts, with initial benefits as early as this year. We are committed to realizing our business integration while continuing to deliver outstanding service experiences for our customers. This traveler-centric approach benefits more than just our customers, flowing on to our concession, brand and business partners alike. 

Thanks to all members of our Board of Directors for their guidance and steering of the integration process, and in particular to Dufry’s Chairman Juan Carlos Torres Carretero for his vision and tireless support. 

The new combined group has a stronger financial position, lower leverage and more financial flexibility. At the same time, the new shareholder structure benefits our integrated company with a strong core of stable shareholders with strategic and industrial focus, in particular those represented in our Board of Directors, Advent and our largest shareholder Edizione who bring in long-term planning and vision. Our thanks go to the Benetton family and our Honorary Chairman Alessandro Benetton for their support, direction and ongoing strategic commitment to our combined Group’s shared future. 

Above all, I want to thank our employees for their extraordinary motivation and hard work. We remain convinced that by revolutionizing the travel experience globally, we will continue our growth trajectory and track record of delivery.” 
 

TRADING UPDATE

Dufry reports continued positive momentum and resilient demand throughout Q1 2023, despite the period being historically the lowest season for the travel sector. Consolidated Turnover reached CHF 2,359.3 million, translating to Turnover growth of 113.4% (CER), with 51.5% organic growth against Q1 2022, which was still impacted by Covid-related restrictions on travel. New concessions (net) contributed positively with 3.3%. Currency effects on Turnover stood at -2.5% for the quarter, mainly related to EUR and GBP.

Turnover Growth

Q1 2023  versus 2022³

Like for Like

48.1%

New concessions, net

3.3%

Organic Growth

51.5%

Change in Scope

61.9%

Growth (CER)

113.4%

FX Impact

-2.5%

Reported Growth

110.9%

The combined Group benefits from a balanced split of business lines. Duty-free accounted for 38% of Turnover, duty-paid/convenience for 26% and food & beverage for 36%. The airport channel contributed 84% in a more diversified portfolio including motorways, railways, ferries, cruise ships, ports and other channels.

CORE EBITDA for the first quarter 2023 came in strongly with CHF 134.1 million, above prior years’ levels. EFCF performed in line with seasonal patterns, amounting to CHF -137.8 million. The solid performance was driven by strong EBITDA and Working Capital movements, typical for the first quarter, including inventory build-up in preparation of increased demand across the high season throughout Q2 and Q3. Based on current visibility, Dufry reiterates its outlook for Full-Year 2023 provided to the market.

The combined Group’s net debt stood at CHF 3,029.0 million as of end-March 2023. Available liquidity amounted to CHF 2,528.4 million, including CHF 1,164.5 million in cash and cash equivalents and CHF 1,363.9 million undrawn debt under the existing Revolving Credit Facility (RCF) at the end of March 2023. In April, Dufry employed the RCF’s “Accordion” feature for increased flexibility and to on-board some of Autogrill’s lending banks alongside Dufry’s existing providers. Thereby, Dufry increased the facility by CHF 178.5 million (EUR 180 million) and as a consequence its total available liquidity to CHF 2,706.9⁴. The RCF can be further enlarged and, based on interest received, Dufry expects to make further use of this option later this year. The same terms and conditions as the initial RCF amount apply. 

Dufry’s margin on borrowings under its RCF improved by 50bps related to rating upgrades by S&P Global Ratings and Moody’s. The agencies upgraded Dufry’s credit rating to BB- CreditWatch Positive and Ba3 Outlook Positive respectively. The combined Group is well positioned for any upcoming financing requirements.
 

RECENT DEVELOPMENTS

For the Q1 2023 Trading Update Presentation and Conference Call, please visit our dedicated page: https://www.dufry.com/en/Q1-23

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Disclaimer:
This document is not an offer of, or a solicitation of offers to purchase or subscribe for, securities in the United States, Australia, Canada, Japan and any other jurisdictions wherethe making of an offer of securities for sale would not be in compliance with the securities or other laws or regulations of such jurisdiction or would require any registration, approval or filing with any regulatory authority (such jurisdictions, including the United States, Canada, Japan and Australia, the "Excluded Countries"). No securities have been or will be registered under the U.S. Securities Act and no securities may be offered or sold in the United States absent registration or an applicable exemption from registration requirements. No actions have been taken or will be taken to make an offer of securities to the public in any of the Excluded Countries. 

¹Growth refers to proforma Dufry and Autogrill combined in CER 
²Including commitments signed in April 2023
³Organic Growth adjusted for FX and regional revenue allocation
⁴Including Accordion signed in April as disclosed to the market on May, 5^th 2023
⁵Organic Growth is adjusted for FX and regional revenue allocation