AVOLTA AG 
EQS Group-Ad-hoc: Dufry International AG / Key word(s): Half Year Results
Dufry with gradual recovery worldwide and continued progress on cost and cash flow management
10-Aug-2021 / 07:01 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
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. HY 2021 personnel and other expenses savings of CHF 510.3 million compared to HY 2019, and signed MAG relief for
2021 of 495.4 million as of end July 2021
. Increase of savings scenarios for 2021 with expectation to achieve up to CHF 1,200 million compared to 2019, after
having already executed CHF 1,312 million savings in 2020
. Decisive actions resulted in lower cash consumption with CHF -45.8 million versus an expected monthly average of
CHF -60.0 million in HY 2021, with FY 2021 EFCF scenarios upgraded
. Successful execution of CHF 1,600 million comprehensive refinancing of relevant maturities, now first upcoming in
2024, including extension of covenant waiver for another twelve months
. Strong liquidity position of CHF 2,172 million as of mid-2021, providing sufficient liquidity for driving
re-openings and growth acceleration
. As of June around 1,600 stores were open, representing over 75% of sales capacity, with expectation to open up to
70% of shops and close to 85% of sales capacity until end-August Continued improvements upon easing of restrictions
and encouraging demand for travel retail in open locations with July net sales performance of -50.4% compared to
2019
. Re-opening supported by operational and commercial excellence initiatives as well as concession wins, contract
extensions and strategic partnerships, e.g. in Brazil, Dominican Republic, Martinique, French Guiana, Jamaica, UK,
several locations in the US, and in China
JULIÁN DÍAZ, CEO of Dufry Group, commented: 'The first half of 2021 was characterized by a slow start due to ongoing
restrictions. However, with the progress on vaccination in many parts of the world and the implementation of supportive
travel protocols, Dufry sees clear signs of recovery in the respective regions. We are certainly not, where we want to
be yet, but the high demand for travel retail and the unique shopping experience offered by our operations give us
confidence for the months to come. Net sales for July were already back at a level of -50.4% compared to 2019. Even
more positive was the performance in the re-opened regions with the US reporting -23.9%, Central America and Caribbean
excluding the cruise business -17.6% and the Mediterranean region, Eastern Europe and Middle East -32.3%, all compared
to 2019.
The re-organization of our company is implemented with an aligned regional setup reflecting internal decision-making
and operations - visible as well in our external reporting structure - and most importantly with refined processes and
new ways of working allowing to generate continued efficiencies. Our changes are reflected in CHF 510.3 million
personnel and other expense savings during the first half 2021, with the expectation to reach up to CHF 730.0 million
for the full-year. We continue to be in discussions with our airport partners and other landlords to align on
concession structuring for locations experiencing still lower passenger numbers. As of July, we have signed CHF 495.4
million reliefs for 2021. At the same time, we are working together on improving commercial concepts and enhancing the
customer experience in our locations.
Our focus continues to be on cash management, with cash flows having turned positive in the months of May and June
already. We are in a position to upgrade the Equity Free Cash Flow scenarios provided to the market earlier this year
and are expecting now CHF -30 million cash consumption on average per month in a -55% turnover scenario compared to
2019, and for cash flow to turn positive in a -40% scenario. The tight control of our performance with respect to costs
and cash flow contributed to a strong liquidity position of CHF 2,172 million as of end June 2021. In addition, we have
successfully concluded the refinancing of around CHF 1.6 billion of upcoming maturities with a well-diversified product
mix to achieve best-possible terms. We are now in a position to focus on re-openings and opportunities to drive
recovery and growth.
We have already engaged in opportunities during the first half of the year with new concession wins and relevant
contract extensions, for example in Brazil, Martinique, French Guiana, Jamaica, Dominican Republic, UK and several
locations in the US, including the innovative Hudson Nonstop stores featuring Amazon's Just Walkout Technology for a
seamless and convenient customer experience. This initiative is part of a broader roadmap for further store
digitalization, which also includes projects for digital engagement throughout the full customer journey. Our
collaboration in Hainan, China, already features such a combination of physical store excellence and digital engagement
and we are well progressing in the opening up of additional 30,000 m² of retail space in the second half of the year.
We are positive on the opportunities lying ahead of us as we are progressing to re-open our operations globally,
continuing to focus on commercial and operational excellence, on further diversifying our business and accelerating
growth. Thereby, sustainability is at the core of the Dufry strategy implementation and we are further driving our
environmental, social and governance (ESG) engagement - now also supported by a dedicated leadership position for
Diversity & Inclusion. My gratitude goes to our employees and management teams for their ongoing dedication and
commitment, to our business partners for their continued support, and to our customers whom we intend to provide a
world-class, worldwide travel retail experience.'
FINANCIAL SUMMARY[1]
In the first Half-year (HY) 2021, Dufry's performance continued to be impacted by international travel restrictions,
however, with gradual improvements in several markets as travel started to resume.
In CHF million HY 2021 HY 2020 ? 2021 vs 2020
Turnover 1,187.2 1,586.9 -25.2%
Gross Profit 666.1 920.5 -27.6%
Gross Profit Margin 56.1% 58.0% -1.9%
Lease Expenses 93.1 -75.7 -168.8
[thereof MAG Relief] 270.5 161.8 108.7
Personnel Expenses -258.4 -423.0 -38.9%
[Other Expenses, net] -131.1 -168.9 -22.4%
Depreciation & Amortization -637.5 -844.9 -24.5%
Impairment -100.7 -340.6 -239.9
Operating Profit (EBIT) -368.5 -932.6 564.1
Net Profit to Equity Holders -499.2 -903.2 404.0
Basic EPS -5.9 -17.4 11.5
Adjusted Operating Profit (Adj. EBIT) -211.0 -464.6 253.6
Adjusted Net Profit -348.1 -582.2 234.1
Adjusted EPS -4.1 -11.2 7.1
Adjusted Operating Cash Flow -47.7 -103.6 55.9
Lease Payments, net -139.3 -284.0 -144.7
Capex -33.6 -60.0 -26.4
NWC Changes -120.9 -473.9 353.0
Equity Free Cash Flow -275.0 -749.1 474.1
Net Debt 3,351.5 3,659.4 -307.9 Summarizing the first six months of 2021, turnover reached CHF 1,187.2 million as compared to CHF 1,586.9 million in the same period in 2020 and versus CHF 4,180.1 million in the same period in 2019. Organic growth for the first half of 2021 stood at -22.8% versus HY 2020, and -69.5% versus HY 2019. Like-for-like performance came in at -28.1% versus 2020 as the health crisis started to impact Dufry's business globally only from Q2 2020 on. Net new concessions represented +5.3% in a temporarily muted environment for opening up new or extending contracts for existing operations. The translational FX effect in the period was -2.4% mainly as a result of the USD devaluation, the currency in which most of the turnover was generated in HY 2021.
[1] Adjusted results exclude exceptional expenses and income such as acquisitions and divestitures, impairments and amortization of acquisition-related intangible assets, as well as recurring solely IFRS 16 accounting-related items such as interest on lease obligations. Please see details on page I-II of HY 2021 Report
Q2 2020 Q2 2019
Turnover Growth Q2 2021 versus 2020 Q2 2021 versus 2019
(yoy) (yoy)
Like for Like 361.5% - -88.5% 0.0%
New concessions, net +41.8% - -4.3% 2.3%
Organic Growth 403.3% -66.0% -92.8% 2.3%
[Change in Scope][2] - 0.0% -0.5% -
Growth in constant FX 403.3% -66.0% -93.3% 2.3%
FX Impact -12.9% -2.3% -0.3% -1.4%
Reported Growth 390.5% -68.4% -93.6% 0.9%
HY 2020 HY 2019
Turnover Growth HY 2021 versus 2020 HY 2021 versus 2019
(yoy) (yoy)
Like for Like -28.1% - -57.6% -0.6% (MORE TO FOLLOW) Dow Jones Newswires
August 10, 2021 01:01 ET (05:01 GMT)
