Dufry sees organic growth +7%, driven by Latin America
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Dufry sees organic growth +7%, driven by Latin America

The world’s largest duty free retailer, Dufry, reported first quarter earnings results on Tuesday, demonstrating a strong forward momentum thanks to increased spending in the United States and Latin America. Organic growth clocked in at 7.2% for the quarter, as Dufry witnessed “stable growth” in most regions and better performance in some of its specific businesses, highlighting the positive impact made by Russian and Brazilian travelers.

Dufry’s share price is up by more than 21%, year-to-date


SOURCE: Yahoo Finance

On the company’s earnings call, CEO Julián Díaz González highlighted the positive impact that two of Dufry’s acquisitions – World Duty Free and Nuance – had on the company’s earnings. Following the full integration of World Duty Free, earnings before interest and tax increased by 5.6%, and revenue hit CHF 1.7 billion – 4.7% higher than the year-ago quarter.

Díaz also reiterated forecasts of a structural growth in international tourism: passenger numbers are expected to increase by 6.8% this year, and exceed 5% increases through to 2019. He said that the same growth drivers that were responsible for the first quarter’s success had persisted into the first few weeks of the second quarter.

Díaz also brought investors attention to the company’s refurbishment of retail space, stressing that it is a critical factor in the company’s continued growth. He said:

“We have refurbished, I mentioned many times that this is a critical path in terms of driving more organic sales, 7,200 square meters of commercial space in Q1. We have total target for renovations in 2017 full year of 26,700. We have also signed so far 23,000 square meters of new commercial space, will be opened until the end of 2017 and the first month of 2018. Most of this space will be open in 2017. And the 23,000 are the square meters signed so far during the first quarter and still we have three quarters to go.”


Dominion holds Dufry in its Global Trends Luxury Fund.

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