Log in
E-mail
Password
Show password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
New member
Sign up for FREE
New customer
Discover our services
Settings
Settings
Dynamic quotes 
OFFON
  1. Homepage
  2. Equities
  3. Switzerland
  4. Swiss Exchange
  5. Dufry AG
  6. News
  7. Summary
    DUFN   CH0023405456

DUFRY AG

(DUFN)
  Report
SummaryQuotesChartsNewsRatingsCalendarCompanyFinancialsConsensusRevisions 
SummaryMost relevantAll NewsAnalyst Reco.Other languagesPress ReleasesOfficial PublicationsSector newsMarketScreener Strategies

Press Release Dufry reports acceleration on turnover and strong positive cash flow in Q3 2021

10/28/2021 | 01:11am EST

BASEL,

October 28, 2021

NEWS RELEASE

AD HOC ANNOUNCEMENT PURSUANT TO ART. 53 LR

Dufry reports acceleration on turnover and strong positive cash flow in Q3 2021

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, and significant 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, considering reliefs 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 sufficient liquidity 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.

1

BASEL,

October 28, 2021

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 Scope1

-

0.3%

-

-

Growth in constant

174.7%

-44.1%

-79.7%

4.1%

FX

FX Impact

2.4%

-1.9%

-0.8%

-2.5%

Reported Growth

177.1%

-46.1%

-80.5%

1.6%

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

BASEL,

October 28, 2021

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 Scope2

0.0%

0.1%

-

-

Growth in constant

23.6%

-60.0%

-67.8%

2.9%

FX

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

Organic

Growth

Growth3

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%

Reported

Organic

Turnover, in CHF million

9M 2021

9M 2019

Growth

Growth3

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. Organic growth adjusted for FX and regional revenue allocation.

3

BASEL,

October 28, 2021

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.

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.

4

BASEL,

October 28, 2021

Total gross retail space opened during Q3 amounted to 2,208 m², predominantly related to several openings in the US. Dufry opened its first-everfull-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.

5

This is an excerpt of the original content. To continue reading it, access the original document here.

Disclaimer

Dufry AG published this content on 28 October 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 28 October 2021 05:10:00 UTC.


© Publicnow 2021
All news about DUFRY AG
11/30Hudson Booksellers Shares Its 'Best of 2021' Collection
EQ
11/30THE CUSTOMER JOURNEY : What does the future hold?
AQ
11/22THE CUSTOMER JOURNEY : How has it changed and what does the future hold?
AQ
11/05EUROPE : European shares end week higher as Pfizer pill lifts travel stocks
RE
11/05European shares end week higher as Pfizer pill lifts travel stocks
RE
10/28Duty free retailer Dufry expects cash inflow to pick up in 2022
RE
10/28Dufry's Turnover Soars 177% in Q3
MT
10/28Dufry reports acceleration on turnover and strong positive cash flow in Q3 2021
PU
10/28Press Release Dufry reports acceleration on turnover and strong positive cash flow in Q..
PU
10/28Q3 2021 Trading Update Presentation
PU
More news
Analyst Recommendations on DUFRY AG
More recommendations
Financials
Sales 2021 3 966 M 4 305 M 4 305 M
Net income 2021 -690 M -749 M -749 M
Net Debt 2021 8 141 M 8 837 M 8 837 M
P/E ratio 2021 -6,62x
Yield 2021 -
Capitalization 4 044 M 4 386 M 4 389 M
EV / Sales 2021 3,07x
EV / Sales 2022 1,76x
Nbr of Employees 17 795
Free-Float 82,5%
Chart DUFRY AG
Duration : Period :
Dufry AG Technical Analysis Chart | MarketScreener
Full-screen chart
Technical analysis trends DUFRY AG
Short TermMid-TermLong Term
TrendsBearishBearishBearish
Income Statement Evolution
Consensus
Sell
Buy
Mean consensus OUTPERFORM
Number of Analysts 13
Last Close Price 44,54 CHF
Average target price 60,16 CHF
Spread / Average Target 35,1%
EPS Revisions
Managers and Directors
Julián Díaz González Group Chief Executive Officer & Director
Yves Manuel Gerster Chief Financial Officer
Juan Carlos Torres Carretero Executive Chairman
Luis Andrés Holzer Neumann Independent Non-Executive Director
Heek Yung Min Lead Independent Non-Executive Director
Sector and Competitors
1st jan.Capi. (M$)
DUFRY AG-19.97%4 358
TRACTOR SUPPLY COMPANY65.98%26 558
NEXT PLC18.26%14 183
MARKS AND SPENCER GROUP PLC79.68%6 429
JARIR MARKETING COMPANY11.88%6 237
LESLIE'S, INC.-20.90%4 168