THE WHAT? Duty-free retailer Dufry has raised its profitability projections for 2023, attributing this adjustment to a surge in global travel post-pandemic, resulting in better-than-expected results for the year’s initial half.
THE DETAILS In its report, Dufry, which runs over 2,300 shops in various locations, including airports and cruise ships, announced that its turnover for the first half nearly doubled, amounting to 5.72 billion Swiss francs ($6.54 billion). Notably, the Asia-Pacific region witnessed a turnover growth of 272%, driven mainly by domestic and intra-regional travel. The retailer also mentioned that it saw an estimated growth of 17% in its July turnover, following new sales strategies emphasizing premium perfumes and organic food and drinks. Furthermore, the January-June period experienced adjusted EBITDA figures of 491.8 million francs, surpassing average analyst expectations by 12%.
THE WHY? Post this announcement, Dufry’s shares showed an uptrend, with an initial rise of 5.2% in early trading sessions. The EBITDA margin, previously recorded at 8.6% for the first half of the year, is now predicted to settle between 8.3-8.4% for the entire year. This outlook is more optimistic than the earlier prediction of 8.0%. Financial analysts from JPMorgan anticipate that this positive trajectory for Dufry shares will continue, with the potential for further earnings enhancements in the year’s second half.