Travel retail powerhouse Dufry has doubled its turnover for the nine-month period 2022 versus 2021, achieving CHF 5,037.7 million (approximately US$5,062.2 million) representing +98.8% organic growth (in constant exchange rate CER).

For the third quarter, turnover stood at CHF 2,115.2 million (approx. US$2,125,4 – TRBusiness calculated US$ conversions based upon the exchange rate on 2 November) representing an organic growth of 58.6% versus the previous year (CER).

The results were revealed earlier this evening in Dufry’s Third Quarter 2022 Trading Update, which was broadcast via a live presentation and conference call.

The strong quarter results are ‘well ahead of projections’, with the retailer noting that the summer months were characterised by a strong performance, in particular, for holiday travel.

“We continue to see strong demand during the third quarter 2022 at attractive margins,” said Xavier Rossinyol, CEO of Dufry Group.

“In particular, holiday destinations in the Mediterranean region, Southern Europe, Middle East, Central America and the Caribbean were driving our performance.

“The USA remained strong, with South American countries having traded upwards,” he continued.

“Even in the APAC region, we saw an increase in activity, specifically in Australia and parts of South-East Asia.”

“We achieved this strong performance despite travel disruptions and capacity caps at airports over the summer months, rising inflation and energy prices, FX moves and geopolitical uncertainties.”

Duty free accounted for 56.1% of net sales versus 43.9% duty paid, reflecting the uptake in cross-border and international flights during the recent months.

The airport channel contributed with 92.1% to total turnover.

Per category, the main contributors continued to be perfumes and cosmetics (29.3%), and food and confectionery (21.7%), with luxury seeing an increase compared to last year.

Dufry estimates an October net sales performance of 34.5% versus 2021 (CER). 

“We are confident to achieve a strong Full-Year 2022 result despite the ongoing macro-economic, geo-political and health-related developments,” said Rossinyol. “We continue to see strong demand into the fourth quarter.”

An overview of retail space and new shop openings

Looking at the company’s retail space development, as per the end of September, more than 2,090 shops globally were open, representing 83% of total stores.

During Q3 2022, Dufry won several new concessions and extended contracts totalling 13,404 m².

Among these was the tender for a five-year duty-paid contract at Chongqing International Airport, China.

In North America, Dufry secured new concessions at Colorado Springs Airport (CO), and contract extensions at Birmingham Shuttlesworth (AL) and Harry Reid International Airport (Las Vegas).

Dufry also opened an integrated “Decanted” wine bar and Hudson Nonstop concept at Dallas Fort Worth International Airport, marking ‘a new era of retail and dining convenience for travellers’.

Total gross retail space opened during Q3 2022 amounted to 2,745 m², and refurbishments to 10,139 m².

A look ahead to expected FY 2022 results

As Rossinyol referenced, continued positive momentum is expected into the fourth quarter.

Excluding currently unforeseen circumstances, Dufry expects to achieve in Full-Year 2022 (based on FX rates as of 30 September): Turnover of CHF 6.6-6.7 billion; CORE EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) of CHF 560-580 million; and Equity Free Cash Flow (EFCF) of CHF 250-270 million.

“As a team, we have determinedly worked on our long-term strategy Destination 2027,” said Rossinyol. “We remain convinced about the long-term opportunities ahead of us, further enhanced by the planned combination with Autogrill.

“The transaction is progressing as planned with closing expected in the first half 2023 and we have received regulatory approvals in important jurisdictions ahead of plan. We are thanking our shareholders for their strong support at our most recent EGM.

“Thanks also to all Dufry employees for their great commitment to deliver on our vision and strategy, and our financial targets in the short-, mid- and long-term,” he added.

“A warm welcome to our new Chief People Officer Katrin Volery who recently joined us and will be part of Dufry’s Group Executive Committee reporting to the CEO.

“We hereby further strengthen our focus on our people, culture and the talent development. The team is at the centre of all what we do.”

Earlier this month, Rossinyol gave a compelling video interview to TRBusiness. In part 1, talking points included his thoughts on how the company’s acquisition of Autogrill will re-mould the travel experience for passengers across Dufry’s extensive global network.

Part 2 explored the progress of the acquisition in greater depth, as well as the company’s ESG commitments and ambitions, and the company’s desire to capitalise on opportunities within the Asia Pacific region.