‘Team’ Dufry turnover hits CHF5.7 billion in first half of 2023

By Faye Bartle |

Dufry H1 2023 results

Xavier Rossinyol, CEO of Dufry Group.

Dufry achieved a turnover of CHF5.7 billion in H1 2023, representing 31.5% organic growth on the same period in 2022, as the Autogrill combination successfully completes.

The first set of results released as ‘one team’ (Autogrill was fully consolidated in February and successfully delisted in July) point to continued growth and a strong performance for the travel experience powerhouse.

In a webcast earlier today, delivered by Dufry Group’s CEO Xavier Rossinyol and CFO Yves Gerster, the Group reported that consolidated turnover reached CHF5,823.6 million for the first half of the year, with CORE turnover (excluding fuel sales) hitting CHF5,715.2 million.

New concessions (net) contributed positively with 2.7%.

More highlights include delivering Core EBITDA of CHF491.8 million, with an 8.6% margin, and operating profit of CHF322.0 million.

Furthermore, there was strong cash flow performance with operating cash flow of CHF 1,091.5 million and Equity Free Cash Flow (EFCF) of CHF165.1 million.

Dufry H1 2023 results

“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,” said Xavier Rossinyol, CEO of Dufry Group.

“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 CHF5,715.2 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.”

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.

Dufry H1 2023 results

Dufry Group’s CEO Xavier Rossinyol and CFO Yves Gerster during the webcast to announce Dufry Group’s H1 2023 results.

“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,” commented Rossinyol.

“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 organisation, 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.”

Looking at regional performance breakdown, it’s important to note that, with the consolidation of Autogrill, Dufry amended its segment reporting to four regions in line with its leadership and management structure as follows: Europe, Middle East and Africa (EMEA), North America (NA), Latin America (LATAM) and Asia-Pacific (APAC).

India and Sri Lanka became part of APAC, versus EMEA previously.

Dufry H1 2023 results


Dufry H1 2023 results

Looking ahead, Dufry notes a ‘strong demand’ for travel retail and F&B into the start of the second half of the year, in line with the ‘steady demand for travel’.

The company estimates July Turnover performance of 17.0% versus 2022 (proforma, CER) and of plus 4.7% versus 2019 (proforma, CER).

In addition, Dufry expects ‘continued positive developments’ throughout 2023 based on current trading and its visibility on consumer behaviour.

Dufry H1 2023 results

Among the big news on the radar is the conclusion of the hotly anticipated Aena tender, with Dufry being awarded operations at Andalusia-Mediterranean, the Balearic Islands, the Canary Islands, Catalonia and Madrid for a period of 12 years, including a total of 21 airports, and representing 100% of the lots tendered for.

READ MORE: Aena commercial revenues pass 2019 levels as Dufry scoops all Spain bids

READ MORE: Dufry swoops for Madrid & Catalonia lots as giant tender in Spain concludes

These spaces will incorporate F&B concepts into retail spaces, signalling the move to hybrid and bringing to life a key element of the Destination 2027 strategy.

“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,” said Rossinyol.

“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.”

He continued: “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 revolutionising the travel experience globally we will continue along our growth trajectory and reinforce our track record of delivery.”

The full breakdown and details of the H1 2023 financial results can be viewed on the Dufry website.

READ MORE: Dufry signs 10-year concession for 350sq m store at Brazil’s Vitória Airport

READ MORE: ASUTIL: “If we maximise sales together, we all win” says Dufry’s Rossinyol

READ MORE: Dufry kicks off 2023 with 51.5% organic first quarter growth


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