Asia-Pacific Turnover amounted to CHF 23.1 million in Q3 2021, versus CHF 17.1 million in the same period in 2020 and CHF 164.3 million in Q3 2019. Organic growth reached 27.2% compared to 2020 and -85.6% compared to 2019 as international travel is still highly impacted. Due to a zero-Covid approach in the region, travel continues to be impacted with a slight decrease in Q3 due to renewed restrictions in some countries, which have already started to re-open for domestic travel such as China and Australia. As soon as restrictions are lifted, demand is expected to show a fast rebound. The Americas Turnover was CHF 499.1 million in Q3 2021 as compared to CHF 182.6 million one year earlier and CHF 891.1 million in Q3 2019. Organic growth came in at 174.5% vs 2020 and at -39.9% vs 2019. North America has seen further improvements driven by US domestic as well as intra-regional travel, especially to Central America and the Caribbean destinations, including Mexico, the Dominican Republic and the Caribbean Islands. Canada has started to contribute positively, and further openings are expected towards the end of the year including intercontinental travel. South America started to trend upwards, especially in Colombia and Ecuador, even though the health situation and vaccination progress were still at a level below many Western countries. The regional net sales split saw Europe, Middle East and Africa contributing with 52.1%, Asia Pacific with 1.7% and the Americas with 37.4%. Global distribution centers accounted for 8.7% of Q3 2021 net sales, which was mostly related to the Hong Kong operations temporarily providing supply to the Mova Mall shop in Hainan until the end of 2021. BUSINESS DEVELOPMENT During Q3 2021, Dufry reported several concession wins. Dufry has, among others, successfully extended for another ten years its duty-free concession at Santiago International Airport (AIC) in the Dominican Republic, adding to its presence at the other international airports of this important tourist destination. Dufry has also successfully extended its contract to operate the tax- and duty-free store at Cardiff Airport in Wales for a further twelve years, the only major passenger airport in Wales. Furthermore, Dufry extended for five and a half years its duty-free concession at Cambodia's three international airports in Phnom Penh, Siem Reap and Sihanoukville, which in 2019 welcomed 11.6 million international travelers. Total gross retail space opened during Q3 amounted to 2,208 m², predominantly related to several openings in the US. Dufry opened its first-ever full-service restaurant and bar, Plum Market, at Dallas Fort Worth International Airport (DFW), which is part of the company's continued strategic execution on growing its food and beverage business. In addition, Dufry introduced its reimagined Brookstone stores concepts including immersive digital elements, an ultra-modern design and expanded product assortment, which has been incorporated into the recent openings at Nashville International Airport (BNA), Norman Y. Mineta San Jose International Airport (SJC), Seattle-Tacoma International Airport (SEA), and the Virgin Hotels Las Vegas. Refurbishments during the third quarter amounted to 4,263 m², including stores in Manchester (UK), Athens, Mykonos (Greece), Vancouver (Canada), and several locations in the US, among others, Nashville, New York, Seattle, Los Angeles, and Salt Lake City. The current pipeline of opportunities stands at approximately 35,200 m² as of end September 2021. Dufry's Hainan collaboration entered its second phase with the grand opening of an additional 30,000 m² during the third quarter, featuring more than 200 renowned international brands at the Global Duty Free Plaza at the Mova Mall in the city-center of Hainan's capital Haikou in China. The full retail space covering around 39,000 m² will be open for travelers in 2022. FINANCIAL UPDATE As of September 2021, net debt amounted to CHF 3,086.0 million. This compares to CHF 3,351.5 million as of June 2021, and to CHF 3,344.0 million at the end of December 2020. Net debt stands at a similar level as in September 2019 pre-crisis, with at the time a position of CHF 3,066.5 million. Equity Free Cash Flow, stood at positive CHF 253.7 million for the third quarter 2021. The measures on cost and cash flow management successfully implemented during 2020 and 2021 supported the strong cash generation in a still impacted turnover environment. Dufry's liquidity position amounted to CHF 2,347.8 million as of September 30, 2021. Based on information available to management, Dufry expects to receive in 2021 MAG reliefs of currently confirmed CHF 1,059.6 million, related to the period affected by the pandemic. Thereof, CHF 825.3 million will be accounted as 'MAG reliefs' under 'lease expenses' and the remaining part as modification accounting leading to lower depreciation of Right of Use assets and lease interest. Dufry expects a total impact on 2021 Net Profit of CHF 975.9 million; with the remaining CHF 83.7 million benefitting future years. All information is preliminary and subject to auditor review. OUTLOOK Dufry provided the market with turnover scenarios for 2021 and respective sensitivities for concession fees, personnel expenses, other expenses, Capex as well as Equity Free Cash Flow. Based on information available to management, Dufry upgrades its previously communicated cost and cash flow scenarios, which are included in Dufry's Q3 2021 investor presentation. In line with the easing of travel restrictions by governments and resuming of operations by airports and other landlords, Dufry re-opens its retail businesses gradually, following single-location productivity scenarios. At the end of September, more than 1,850 shops globally were open, representing around 84% in sales capacity compared to full-year 2019. Newly re-opened locations include, among others, shops in Argentina, Armenia, Canada, Chile, Russia, Serbia, Spain, the UK, and several locations in the US, for example the flagship Hudson News store at New York City's world-famous Grand Central Terminal. At the end of October, Dufry expects to operate around 80% of shops, representing more than 85% of sales capacity. For October 2021, Dufry estimates net sales to reach 60.6% of the October 2019 level. Only considering opened shops, trading as of October is expected to be at around 75% of 2019 levels already. By region, net sales estimates for Europe, Middle East and Africa are at 61.7%, for Asia Pacific at 7.7%, and for The Americas at 60.5% of the October 2019 level. Locations with stronger exposure to domestic and intra-regional travel and more flexible travel protocols performed well above group average. Dufry's operations in the US, for example, reached net sales of 74.1% of 2019, and Central America, including Mexico, the Dominican Republic and the Caribbean Islands, stood at 90.4% of 2019 (excluding cruises). Within EMEA, Turkey, Greece, Eastern Europe and Middle East advanced most with October net sales at 89.1% of 2019. Current sales trends are encouraging and Dufry will continue to manage re-openings in line with travel uptake and customer demand while driving commercial and operational excellence, engaging in diversification and digitalization initiatives, increasing efficiencies and further strengthening its ESG engagement. 


For further information please contact: 
 
Dr. Kristin Köhler                      Renzo Radice 
Global Head                             Global Head Corporate 
Investor Relations                      Communications & Public Affairs 
Phone: +41 61 266 44 22                 Phone: +41 61 266 44 19 
kristin.koehler@dufry.com               renzo.radice@dufry.com

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End of ad hoc announcement

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Language:     English 
Company:      Dufry International AG 
              Brunngässlein 12 
              4010 Basel 
              Switzerland 
Phone:        +41612664444 
E-mail:       Headoffice@dufry.com 
Internet:     www.dufry.com 
ISIN:         CH0023405456 
Listed:       SIX Swiss Exchange 
EQS News ID:  1244192 
 
End of Announcement EQS Group News Service 
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1244192 28-Oct-2021 CET/CEST

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October 28, 2021 01:01 ET (05:01 GMT)