Dufry sees massive surge in revenue for 2017
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Dufry sees massive surge in revenue for 2017

Dufry, the world’s largest duty free retailer by revenue, has reported a 7% increase in turnover, year on year, for 2017. It also saw a rise in EBITDA (earnings before interest, tax, depreciation, and amortisation) to CHF 1.01 billion for the first time ever, and a 14% year-on-year increase in earnings per share to CHF 6.84. Gross profit rose by 8.6% over the same timeframe.

The company reported that part of its success could be put down to strong performance when it came to securing future business, winning new contracts and extending concessions. Throughout the year, Dufry saw its gross retail space increase by 30,000sqm, primarily in North and Latin America, with around half that number again already on the cards for 2018.

Dufry’s CEO Juián Diaz said: “We have made good progress in the three defined key areas: accelerating organic growth, increasing cash generation and reducing our debt. Organic growth for the full year 2017 reached 7.4%, which is exceeding our original expectations. EBITDA crossed for the first time the CHF 1 billion mark and our cash flow generation increased by 18%, excluding one-offs."

“From an operational perspective, we started with the implementation of the new Business Operating Model (BOM) by launching the BOM process in 19 countries, of which 10 have already passed internal certification reaching the expected efficiencies.”

“Last but not least, we made good progress on our digital agenda by opening the first New Generation stores in Madrid, Melbourne, Cancun and Zurich as well as rolling out our digital customer loyalty programme RED by Dufry.”

2017 marked the first year that the acquisition of World Duty Free was represented in Dufry’s full-year results, amounting to synergies of CHF 125 million (an increase from the CHF 105 million expected).

Diaz was also positive about the coming year, and issued the following statement regarding the first three months: “The positive market conditions seen throughout 2017 have continued in the first months of 2018 in all divisions with similar organic growth performance as in previous quarters, thus providing a good base for the start into the new reporting year.”

Disclosure

Dominion holds Dufry in its Global Trends Luxury Fund.


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