Dufry turnover up nearly 20% in first quarter

Nicole Mezzasalma

Print Article E-Mail Article E-Mail Author

The consolidation of Hudson Group offsets a fall in organic growth of 18.1% in the first three months of 2009

Swiss travel retailer Dufry Group has announced a 19.7% increase in turnover to SFr538.3m ($485.7m) in the first three months of 2009 compared with the same period the previous year. EBITDA grew by 15.8% to SFr58.1m ($52.5m), but organic growth fell by 18.1%. The company said new concessions, currency exchange rates and the consolidation of US-based retailer Hudson Group—which contributed 34% to the group’s growth—affected its results positively.

The retail group said in a statement that it had experienced “a softening in turnover due to a lower number of passengers caused by the current economic environment” in the first quarter of the year. The positive effect of the Easter holidays was also absent as [passenger numbers] fell in the second quarter in 2009. All geographical regions with the exception of North America experienced a fall in turnover, with Europe suffering the most, down by 24%. However, the company added that traditionally “the first quarter is the slowest of the year for Dufry as well as for Hudson”.

Dufry CEO Julián Díaz said: “In the first quarter of 2009 the accelerated fall in passenger numbers combined with the one-off effects and the impact of Easter resulted in a strong decrease in organic growth. We will continue to monitor developments closely and take further action if required as we have already done as part of our efficiency plan. Thanks to this, we have managed to maintain our profitability despite the current economic environment and the adverse conditions that have prevailed in the market.”

He concluded: “Overall, Dufry’s performance in the first quarter highlights the resilience of our business model in terms of profitability and even though there is limited visibility on when the negative trend in passenger numbers will bottom out, Dufry’s first quarter figures demonstrate that it can operate successfully even in a challenging environment.”