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Dufry South America posts strong first-quarter growthDufry South America posts strong first-quarter growth
Andrew Pentol
21-May-2008
The opening of new stores at airports and on cruiseships contributed to a strong first three months for the retailer in 2008
Dufry South America has announced a 63% increase in net income to $15.3m in the first quarter of 2008. Total turnover rose by 31% to $135.8m and gross profit was up 36% to $78.8m as a result of various initiatives designed to increase customer penetration and average spend per customer. These included changes to store layout, adapting pricing and payment term policies, changes in sales mix towards higher-margin product categories and the addition of new brands to the product portfolio.
Duty-free and duty-paid airport shops registered growth of 35% in the first quarter of the year, prompted by an 8% increase in international passenger traffic in Brazil, the opening of two new duty-free stores at Belo Horizonte International airport and refurbishments completed in the second half of 2007. Duty-paid sales also increased as a result of new stores at Belo Horizonte and Natal International airports.
Sales in cruiseship duty-free shops rose 14% compared with the same period in 2007. This was driven by start-up operations on board two new ships at the end of last year. Sales through other channels increased 18% due to changes in the supply chain that enabled the company to improve its stock management and consequently improve the availability of products.
A company statement said: “We will continue to apply our successful business model to our new projects and concessions, always seeking new opportunities in Brazil and other countries throughout South America. From a strategic standpoint we also intend to reinforce our presence on board cruiseships and not only in the Caribbean where we already operate, but also along the Brazilian coast which is becoming increasingly attractive.
“Our goal is to constantly increase the overall number of customers in our stores and raise the average value of their purchases. In order to achieve that, we intend to continue refurbishing and expanding our stores using new shop concepts that are attractive to our customers and encourage consumption.”
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(15-Sep-2007) - The bulk of Dufry Group’s growth has emerged from South America over the past year, with big acquisitions driving sales. DFNI examines the group’s recent performance in the region
(30-Oct-2006) - Just months after its acquisition of South America’s biggest travel-retail operator Brasif, Dufry Group is to launch a public offering for its business in the region