Brasif effect drives Dufry growth

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The Swiss group posted first-half turnover growth of 46% in 2006, in part thanks to the integration of Latin America's biggest travel retailer

Dufry Group has released its half-year report for 2006, revealing turnover growth of 46% to SFr622.3m ($506m). The rise in sales allowed the Swiss retailer to post SFr320.1m ($260.2m) in gross profit, an increase of 53% on the previous year.

The integration of Brasif Duty Free Shop into the Dufry portfolio, following its acquisition in March, helped boost turnover in the second quarter, although Dufry noted that even without the "Brasif effect", the retailer would have recorded sales growth of 23%. Dufry said the improvement to gross profit "is mainly due to enhancements made in the existing business operations and to the fact that the new operations generate high gross margins".

Noting an increase in "selling expenses", Dufry cited a rise in total concession fees, partly a result of the Brasif acquisition but also caused by new contract gains subject to "above average" concession fees.

Dufry's first-half EBITDA reached SFr61.6m ($50.1m), a year-on-year increase of 56%. EBIT increased by 57% to SFr41.5m ($33.7m).

North America and the Caribbean accounted for the greatest share of sales by region for Dufry in the first six months of 2006, at 32% of the total.

Europe accounted for 28%, South America 16%, Eurasia and Asia 14% and Africa 10%. Fragrances and cosmetics represented 23% of sales, followed by watches, jewellery and accessories at 17%, liquor and wines at 16%, confectionery at 12% and tobacco at 11%.