Dufry had a great 2016 with +27.5% turnover and integration of WDF
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Dufry had a great 2016 with +27.5% turnover and integration of WDF

Duty free retailer Dufry had the kind of 2016 that leaves you wanting to raise a glass. The company released full year earnings results showing a massive 27.5% increase in turnover, and claiming that it had “achieved all its main goals”. This includes, importantly, the integration of former competitor World Duty Free, which the company bought out to become the world’s largest travel duty free retailer.

EBITDA also grew by an impressive 29.3% year-on-year, and free cash flow rose by a staggering 43% in the same period.

Dufry is up 16% so far this year

dufry gph

SOURCE: Yahoo Finance

The company signed contract extensions on nearly 80,000sqm of retail space for the coming year, opened a further 41,800sqm, and refurbished 30,000sqm, painting a positive picture of the immediate future. And with the full integration of World Duty Free, synergies have already been confirmed at CHF 105 million. They are expected to rise as high as CHF 125 million by the end of this year.

Dufry’s CEO Julian Diaz said:

“2016 ended up being a successful year for Dufry after a tough start. Throughout the year we focused on and successfully accomplished our three main goals: driving organic growth, completing the integration of World Duty Free, and maximizing cash flow generation to deleverage. The several growth initiatives launched by us in late 2015 played an important role on the growth acceleration. The global alignment of our operational approach and the extensive refurbishment plan covering over 30,000 m2 of retail space in 119 shops not only supported our performance in 2016, but will also be one of our key organic growth drivers in 2017.”

Diaz continued to strike a positive tone for the future, adding:

“Positive fundamentals on the global economy and the resilient growth in passenger numbers indicate a positive overall business environment. Combined with our focus on operational improvements and the already signed additional space of 22,000sqm to be opened in 2017 and beyond, we expect a successful year for Dufry.”

Disclosure
Dominion holds Dufry in its Global Trends Managed and Global Trends Luxury Funds.


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