Dufry first-half turnover grows more than 44%

Gavin Lipsith

Print Article E-Mail Article E-Mail Author

Rapid growth in the retailer’s Americas business drives a solid performance across Dufry’s global operations

Dufry Group’s turnover for the first half of 2007 grew by more than 44% compared with the same period last year, reaching SFr622.3m ($515m). In six-month results announced today Dufry said that organic growth accounted for a 14% increase in total turnover, acquisitions for 26% and new projects for 4%.

Gross profit reached SFr470.3m ($389.2m), an increase of 47% on the corresponding period of the previous year. Gross profit margin improved by one percentage point to 52.4%, driven by a combination of change in product mix—with fragrances and cosmetics rising from 23% of total sales to 26%—together with negotiations with suppliers.

EBITDA (before other operational results) for the first half year of 2007 accounted for SFr105.9m ($87.7m), up by 72% on the corresponding period of 2006. Dufry said that improvements in gross margin—up to 11.8% from 9.9% in the previous period—more than compensated for the 0.3% increase in concession fees.

Dufry’s Americas business, divided in the results into South America and North America & Caribbean regions, achieved the fastest growth, with net sales increasing by 112% and 47% respectively, to SFr272.2m ($225.3m) and SFr232.8m ($192.7m). Of South America’s 112% growth, 80% was attributable to the consolidation of Dufry Brazil following the acquisition of Brasif, with the remaining 32% representing organic growth, which Dufry called “remarkable” given the stagnation of passenger numbers in the region.

Dufry North America & Caribbean’s 47% growth was due mainly to the consolidation of the Bared Group acquisition in Puerto Rico, accounting for regional sales growth of 33%. Organic growth accounted for the remaining 14%, and would have been 17% without the adverse effects of currency exchange rates. Dufry said its businesses in Mexico and the Dominican Republic were doing particularly well.

Dufry Africa reported a net sales increase of 22% to SFr77m $63.8m), driven by double-digit growth across all operations, with particularly strong results in Morocco and the new Algiers business opened in late 2006. Dufry Eurasia sales grew by 21% to SFr104.1m ($86.2m), with the company citing business in Sharjah, Moscow, Cambodia and Belgrade as having particularly good sales. And Dufry Europe’s net sales grew by 10% to SFr191.5m ($158.6m), with Milan Malpensa and Linate airports and Swiss and Spanish operations mentioned as key performers. 

Finally, Dufry reported that it had reduced net debt from SFr582.3m ($482.3m) to SFr481.2m ($398.6m) over the course of the period. It has also rearranged financing with its syndicate, which granted Dufry SFr800m ($662.7m) to finance “project opportunities that may appear going forward”.