Dufry delivered on its expectations for full-year 2022, driven by robust demand for travel following the lifting of restrictions across most geographies. Turnover of CHF 6,878.4 million attained, resulting in an Organic Growth rate of more than 76.1% (in constant exchange rate CER) compared to FY 2021. CORE EBITDA margin reached 8.8%, while EFCF was CHF 305.2 million.
FURTHER HIGHLIGHTS:
- Gross Profit benefitted from robust consumer demand, reaching a 61.0% margin
- CORE EBITDA reached CHF 606.2 million with margin of 8.8%, and Operating Profit came in at CHF 502.4 million, driven by the strong H2 performance
- CORE EBITDA to EFCF conversion of 50.3%, above projections, supported by lower Capex
- Reduction of Net Debt to below pre Covid-19 level, standing now at CHF 2,810.7 million, meeting covenant thresholds well ahead of the required timing
- Available liquidity of CHF 2,343.0 million, supported by successful refinancing at attractive terms and strong cash position, significantly reducing risk of any upcoming financing requirements
- New strategy “Destination 2027” under implementation with fast start, supporting growth across all pillars, and aligned with Group organizational setup
- Consolidation of Autogrill as of February 2023, following successful transfer of Edizione stake, with full transaction closing including mandatory exchange offer settlement expected towards the end of Q2 2023
- Confirmation of mid-term outlook 2023-2027
- Considerable progress on implementing ESG strategy, including SBTi1 validation of emission reduction targets, publication of first TCFD2 Report and advancing on Diversity & Inclusion (D&I) and Community Engagement initiatives
Xavier Rossinyol, CEO of Dufry Group, commented: “I am delighted to be reporting on a successful year for the business and proud of the achievements the Dufry team has delivered. While Covid-19 related restrictions in most regions globally remained in place at the beginning of the year, the easing of travel-related requirements since Q2 have uplifted demand significantly. Most importantly, we have seen robustness in travel-related spending despite macro-economic and operational challenges within the travel industry. Our Turnover of CHF 6,878.4 million came in above of projections – all the more remarkable considering the ongoing macroeconomic headwinds of inflation, rising interest rates and travel disruptions.
With our focus on profitable growth and cash generation, we delivered a solid CORE EBITDA performance of CHF 606.2 million, resulting in a margin of 8.8%. EFCF came in at CHF 305.2 million – equal to a conversion of 50.3% from CORE EBITDA – significantly exceeding our expectations at the beginning of the year. We have maintained strong Capex discipline, especially during the first half of 2022, due to limited visibility on Covid-19 variants and the broader geo-political environment. We anticipate a more normalized environment in 2023, facilitating investment activity in line with our targets.
During 2022, we have not only delivered on our financial targets, but also set the cornerstone for a prosperous future of our company as the global leading Travel Experience player. Dufry’s new strategy “Destination 2027” sets out the path including our focus on geographical diversification, customer-centricity and digitalization, and a strong emphasis on our people and on ESG.
The transformative business combination with Autogrill is an integral part of our long-term strategy and essential to delivering on our ambition. We are on track to close the transaction towards the end of the second quarter whilst rapidly advancing on the implementation of “Destination 2027” – including the integration of both companies and delivery of related synergies. Dufry’s new organization reflects our strategic priorities, driven by talent from both companies.
In the name of the combined teams of Dufry and Autogrill, I would like to renew our sincere sympathy for the communities affected by the devastating earthquake in Turkey and Syria. Our thoughts are with these people and their families and I can confirm Dufry’s commitment to support them with combined initiatives on the part of both the company and our customers.
I want to thank our external business partners, including our concession partners, brand suppliers, the financial community and our share- and bondholders who continue to support the company. Our common vision is to further develop Dufry and drive the Travel Experience revolution. My thanks go to our Chairman, Juan Carlos Torres, and the Board of Directors for their trust and support in evolving our company. A special thanks to Edizione and its Chairman, Alessandro Benetton, for their support in combining the two companies.
Above all, I want to thank our employees for the extraordinary motivation and hard work they have given the company, demonstrating a great level of dedication and deserving my and our managements’ respect and gratitude.”
In 2022, Dufry saw improvements in nearly all its operations, with a significant traffic recovery in the second half of the year, complemented by strong internal performance of its retail operations focused on customer centricity. Turnover reached CHF 6,878.4 million, representing Organic Growth of 76.1% compared to 2021. The translational FX effect versus 2021 was -0.4%, mainly related to the effects of the stronger key currencies USD, EUR and GBP.
The category mix mirrors the continued normalization of travel including international routes. Duty-free accounted for 57.4% of net sales versus 42.6% duty-paid, close to historical levels; the airport channel contributed with 91.4%.