EQS Group-Ad-hoc: Dufry International AG / Key word(s): Quarter Results Dufry reports acceleration on turnover and strong positive cash flow in Q3 2021 28-Oct-2021 / 07:00 CET/CEST Release of an ad hoc announcement pursuant to Art. 53 LR The issuer is solely responsible for the content of this announcement.

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AD HOC ANNOUNCEMENT PURSUANT TO ART. 53 LR

Dufry's third quarter 2021 was characterized by a re-bound of travel, predominantly in the Western hemisphere, with turnover at 55.6% of 2019 levels and reaching CHF 1,349.5 million for Q3 2021. Turnover for the nine-month period 2021 stood at CHF 2,536.8 million, plus 23.6% organic growth as compared to the same period 2020. The Group reported a strong positive Q3 Equity Free Cash Flow generation, and further upgraded the 2021 scenarios provided to the market.

FURTHER Q3 HIGHLIGHTS: . Performance during Q3 continued to be driven by the US and Central America & Caribbean businesses, andsignificant progress across EMEA with all regions contributing positively . Around 1,850 stores open, representing 84% of 2019 sales capacity . Further progress to align concession fees to the pandemic situation, with minimum annual guarantees (MAG)reliefs for 2021 expected to reach CHF 1,059.6 million, including the law amendment in Spain . Savings scenarios for 2021 expected to reach up to CHF 1,870 million compared to 2019, consideringreliefs of MAG, personnel and other expenses . Equity Free Cash Flow of CHF 253.7 million during Q3 2021, reaching similar levels as in Q3 2019 . Net debt decreased to CHF 3,086 million, reaching same level as in September 2019, and sufficientliquidity position of CHF 2,347.8 million for driving re-openings and growth acceleration . October net sales performance trends at 60.6% of 2019 levels

JULIÁN DÍAZ, CEO of Dufry Group, commented: "The third quarter has trended further upwards and gives us confidence for the ongoing re-openings and growth opportunities beyond. We have seen continued progress in the US and Central America including the Caribbean Islands. The most significant uptake was reported across Europe, Middle East and Africa as vaccination campaigns have been progressing and authorities have started to focus on an alignment of travel protocols and the practicality of measures. For October, we are already trading at a level of 60.6% of 2019. We have more than 80% of our shops open - only considering re-opened locations, our trading reaches around 75% of 2019 already. Looking at the most progressed regions, we are even relatively close to normalization. For example, Central America & the Caribbean trades at 90.4%, Mediterranean, Eastern Europe and Middle East at 89.1% of 2019 levels. The positive sales trend is also reflected in our strong cash flow generation for the quarter. Equity Free Cash Flow reached plus CHF 253.7 million - for comparison, Q3 cash flow generation was at a similar level in the years 2017 to 2019. Our cash flow has been positive since May this year and shows our strong cash conversion capabilities even in a volatile environment. The fourth quarter will naturally see some outflow related to the seasonality of our business, but we are nonetheless in a position to further upgrade our cash flow scenarios for the second half. We are now expecting to have a cash inflow of around plus CHF 125 million in the second half of 2021 in a minus 55% turnover environment for the Full-Year 2021 compared to Full-Year 2019. Dufry's cost management is clearly supporting this positive development. We are expecting to overachieve our overall cost savings target for 2021 of initially around CHF 970 million and are estimating now to reach around CHF 1,870 million savings for Full-Year 2021, compared to 2019. We continue with our close interactions with our landlords and airport partners to find viable solutions for the significant drop in passengers since last year, and we have also seen an alignment of concession fees to passenger numbers. Further reliefs of minimum annual guarantees were achieved, acknowledging the severeness of the situation travel retail operators and other concessionaires are operating in. Our net debt position stands at a similar level as in September and December 2019 pre-crisis, and liquidity increased to CHF 2,347.8 million. Our financial position gives us the flexibility to focus on the continued re-opening, to implement commercial and operational excellence initiatives, while driving diversification and digitalization and sustaining our efforts in regard to sustainability as a main pillar of our growth strategy going forward." TURNOVER Summarizing the first nine months of 2021, turnover reached CHF 2,536.8 million, with a third quarter performance of CHF 1,349.5 million. Organic growth for the third quarter 2021 stood at -44.4% versus Q3 2019. The translational FX effect versus 2019 was -1.9% mainly as a result of the USD depreciation, the currency in which most of turnover was generated in Q3 2021. 


Turnover Growth         Q3 2021 vs 2020       Q3 2021 vs 2019   Q3 2020   Q3 2019 
                                                                (yoy)     (yoy) 
Like for Like           142.0%                -                 -76.9%    1.3% 
New concessions, net    32.7%                 -                 -2.8%     2.8% 
Organic Growth          174.7%                -44.4%            -79.7%    4.1% 
Change in Scope^1       -                     0.3%              -         - 
Growth in constant FX   174.7%                -44.1%            -79.7%    4.1% 
FX Impact               2.4%                  -1.9%             -0.8%     -2.5% 
Reported Growth         177.1%          ­­­­­ -46.1%            -80.5%    1.6% 
Turnover Growth         9M 2021 vs 2020   9M 2021 vs 2019   9M 2020   9M 2019 
                                                            (yoy)     (yoy) 
Like for Like           11.8%             -                 -64.9%    0.1% 
New concessions, net    11.8%             -                 -2.9%     2.8% 
Organic Growth          23.6%             -60.1%            -67.8%    2.9% 
Change in Scope^2       0.0%              0.1%              -         - 
Growth in constant FX   23.6%             -60.0%            -67.8%    2.9% 
FX Impact               -1.3%             -2.0%             -1.2%     -1.1% 
Reported Growth         22.3%             -62.0%            -69.0%    1.8%

The category mix reflects the current re-opening patterns with domestic and intra-regional travel recovering earlier, resulting in some stronger demand for duty-paid and the respective food & confectionery and convenience product offerings. During Q3, perfume & cosmetics increased its share and strongly improved performance, underlining its position as one of the core categories within travel retail and continued high demand among customers. The airport channel also gained share in line with continued travel uptake. Spend per passenger and average ticket value remain elevated on a location-by-location comparison.

REGIONAL PERFORMANCE 


Turnover, in CHF million         Q3 2021   Q3 2019   Reported Growth    Organic Growth^3 
Europe, Middle East and Africa   692.9     1,376.6   -49.7%            -48.8% 
Asia Pacific                     23.1      164.3     -85.9%            -85.6% 
The Americas                     499.1     891.1     -44.0%            -39.9% 
Distribution Centers             134.4     69.9      92.3%             228.5% 
Dufry Group                      1,349.5   2,501.9   -46.1%            -44.5% 
Turnover, in CHF million         9M 2021   9M 2019   Reported Growth   Organic Growth^3 
Europe, Middle East and Africa   1,068.9   3,364.9   -68.2%            -68.0% 
Asia Pacific                     75.2      525.3     -85.7%            -84.8% 
The Americas                     1,137.0   2,607.4   -56.4%            -52.7% 
Distribution Centers             255.7     184.4     138.7%            134.2% 
Dufry Group                      2,536.8   6,682.0   -62.0%            -60.1%

^1 No changes in overall retail space ('scope'), as positive contribution of the acquisitions of RegStaer Vnukovo (Russia) and the Brookstone airport stores (US), conducted in November and October 2019 respectively, offset by disinvestments in 2019 (defined as closure of all operations in a specific location).

^2 No changes in overall retail space ('scope'), as positive contribution of the acquisitions of RegStaer Vnukovo (Russia) and the Brookstone airport stores (US), conducted in November and October 2019 respectively, offset by disinvestments in 2019 (defined as closure of all operations in a specific location).

^3 Organic growth adjusted for FX and regional revenue allocation.

Europe, Middle East and Africa Turnover amounted to CHF 692.9 million in Q3 2021, versus CHF 274.5 million in the same period in 2020 and CHF 1,376.6 million in the same period of 2019. The third quarter 2021 saw an organic growth performance of 149.5% versus Q3 2020 and of -48.8% versus Q3 2019. Performance increased significantly compared to the first half of 2021 with all regions contributing positively. Best performing were Mediterranean, including Turkey and Greece, Eastern Europe, Russia, Middle East and Africa benefitting from leisure demand and more flexible travel protocols compared to other countries in the region. Also France, Portugal, Italy, Spain, Switzerland and the UK saw an uptake since July as vaccination campaigns are progressing and authorities are implementing more convenient intra-European travel protocols. Departure destinations with inbound travel to UK benefitted from new regulations related to Brexit and duty-free quotas.

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