Dufry lands Belgrade and Algiers contracts

Dermot Davitt

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The Swiss-based travel retailer makes impressive gains in two emerging travel-retail markets

Dufry has signed a contract with Belgrade Airport Authority to operate all duty-free and duty-paid shops landside and airside, as well as existing and future food and beverage outlets at the Serbian airport. The surprise news follows the airport authority's announcement late last year that Aer Rianta International had been the sole bidder for the contract.

The contract runs for ten years and comprises a total commercial area of 6,300sq m (68,000sq ft), which is going to be developed in several phases. In 2006, around 1.5m passengers are expected to use Belgrade airport.

In addition, Dufry has been awarded the exclusive concession to operate duty-free shops at Algiers Houari Boumédienne Airport by the Algerian Airports Authorities, EGSA (Etablissement de Gestion de Services Aéroportuaires d'Alger). The five-year concession is scheduled to start in April 2006. Dufry will run two duty-free shops with a total surface area of 640sq m (6,800sq ft). Forecasts are for 2m passengers in 2006.

The retailer said that the two new contracts "will further strengthen Dufry's presence in the Mediterranean, which is one of the strategic growth areas for Dufry".

Dufry has announced full-year sales of SFr949m ($724.4m) in 2005, a rise of 12% over 2004. It will publish its complete annual results on April 28.

Meanwhile, Dufry has signed a contract with Cave Shepherd & Co to increase Dufry's shareholding in Duty Free Caribbean Group (DFC) from 50% to 60%. The transaction, which is subject to regulatory approval, involves the issue of new shares in the capital of DFC to Dufry as well as the purchase of shares by Dufry from Cave Shepherd. The proceeds from the capital increase of BD$26m ($13m) will be used by DFC primarily to acquire the remaining 50% of Young Caribbean Jewellery, which operates 15 jewellery shops in Antigua, St. Maarten, St. Lucia, Aruba and St. John.

"The transaction reflects Dufry's strategy to further develop the Caribbean market jointly with Cave Shepherd," said Dufry.