Dufry, the leading global duty-free retailer, has exceeded expectations and announced an increase in its full-year profitability target. The company experienced significant growth in the first half of the year, largely due to the resurgence of global travel following the pandemic and increased business from Autogrill service stations in Italy. With over 2,300 shops operating at airports, cruise liners, and seaports worldwide, Dufry reported a nearly doubled half-year turnover of 5.72 billion Swiss francs ($6.54 billion). The inclusion of Autogrill contributed to a 31.5% increase in turnover, driven by holiday travels in Europe and domestic trips in the US.
CEO Xavier Rossinyol expressed excitement about the integration of Autogrill into Dufry’s operations and hinted at future developments aimed at making their stores even more engaging and interactive for customers. Rossinyol mentioned the introduction of live events and gamification elements in the customer experience.
The Asia-Pacific region played a significant role in Dufry’s growth, with turnover in the region increasing by an impressive 272% from a low base. This growth was primarily driven by domestic travel within China and intra-regional travel. Dufry has recently introduced new sales concepts focusing on providing a holistic shopping experience, emphasizing “mind, body, and soul” as well as premium perfumes. The company has also shifted its focus towards offering organic and freshly prepared food and drinks.
Dufry’s positive performance continued in July, with an estimated 17% growth in turnover. Adjusted EBITDA for the January-June period reached 491.8 million francs, surpassing analyst estimates by 12%. The company now projects an EBITDA margin of around 8.3-8.4% for the full year, up from the previous guidance of 8.0%.
These results reflect the gradual recovery of the travel industry as travel restrictions are lifted and consumer confidence in air travel returns. Dufry’s strategic initiatives, including enhancing the customer experience and diversifying product offerings, have positioned the company well to capitalize on the resurgence of global travel. As the world adjusts to the new normal, Dufry is poised to continue its growth trajectory, delivering value to both travelers and shareholders.
Useful links:
– Dufry official website
– Forbes article on the global travel retail market
