Dufry-owned Hudson Group registered like-for-like sales growth of +5.5% and organic sales growth* of 9.4% in the first quarter of 2018 during which it also won, extended or expanded six concession contracts. Net sales grew +8.9% to $415m year-on-year.

The group said that strong like-for-like growth was driven by robust sales growth in Canada, which was fuelled by Chinese new year and the weaker US dollar.

Net new business for the company included new operations at Chicago Midway Airport, DFW, Des Moines, LAX T3, Phoenix (duty free), Tampa (duty paid and duty free) as well as Tucson & Tulsa.

Hudson also revealed in its Q1 2018 earning statement that its gross profit margin expanded 50 bps to 62.8% and adjusted EBITDA grew +55%.

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  “Our impressive first quarter organic sales growth reinforces the attractive and resilient nature of the travel retail industry as well as the multiple levers we have to expand our concession portfolio,” said Joe DiDomizio, President and CEO of Hudson Group.

KEY WINS IN PHOENIX AND SEATTLE

“We made significant progress in executing our strategic initiatives, highlighted by the ongoing development of our grab & go offerings as well as capturing additional white space opportunities through key wins at Phoenix and Seattle airports.

“As we look ahead, we are confident our performance year-to-date, combined with the continued execution of our strategic priorities, will position Hudson Group to deliver continued growth.”

In terms of business diversification and expansion, Hudson highlights in its Q1 2018 results presentation that it expanded its Grab & Go offering, launching 14 new food items under the ‘Traveler’s Best’ brand for which it expects sales to grow by 50% in 2018.

Other highlights for the company included the signing of an agreement with FAO Schwarz to serve as the exclusive airport retailer for FAO Schwarz and FAO Schweetz products and shops.

As previously reported, Hudson also completed its initial public offering on the New York Stock Exchange.

*Organic growth represents the combination of growth from (i) like-for-like growth and (ii) net new stores and expansions. Organic growth excludes growth attributable to (i) acquired stores until such stores have been part of our business for at least 12 months and (ii) eight stores acquired in the 2014 acquisition of Nuance and 46 stores acquired in the 2015 acquisition of World Duty Free Group that management expected, at the time of the applicable acquisition, to wind down.