Dufry’s organic growth hits 5-year high thanks to UK
Duty free market leader Dufry reported earnings for its second quarter last Monday, revealing organic growth that hit levels not seen for 5 years. The company’s second quarter organic growth accelerated to 8.9% from the year ago quarter, driven by strong performances in UK and South American airports. Looking at the first half of the year, turnover rose by 5.8% year-over-year to $3.95 billion. Dufry noted that the UK market remains a top performer following the Brexit vote and devaluation of the British pound.
Dufry’s share price has appreciated by 27% in 2017 so far
SOURCE: Yahoo Finance
Dufry used the earnings release as a platform to share other news. The company said it is considering an initial public offering of its North American business, including duty-free and duty-paid travel retail. According to Dufry, the North American market is different from other regions in which it operates, and an IPO would “create strategic flexibility for the North American business to pursue growth opportunities specific to this market.”
Speaking about the company’s prospects throughout the rest of the year, CEO Julian Diaz commented:
“We expect to see good market conditions also in the second half of the year, with the third quarter being the most important period for us. We expect trends to continue in most markets, although some markets will have a higher comparison base in the second half of 2016, such as United Kingdom, Brazil and Spain. The 3rd quarter is also the most important for cash generation and deleveraging, which continues to be a focus point of Management.
“Dufry’s fundamentals are strong, and our strategy of diversification by geographies and channels puts Dufry in the right position to strongly benefit from the normalized business environment. At Dufry we continue to be strongly committed and working towards a successful year.”
Dominion holds Dufry in its Global Trends Luxury Fund.
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