SPAIN. Travel experience player Avolta has today confirmed strong progress on its Destination 2027 roadmap, delivering upbeat operational and financial performance during the Capital Markets Day in Barcelona (26 June).
The results reflect the strength of its commercial innovation and its focus on driving sustainable value for shareholders.
Innovation-driven growth
Avolta has demonstrated consistent progress across key financial metrics, including turnover, EBITDA margin and EFCF conversion, since the roll-out of its Destination 2027 strategy.
The company attributes this progress to disciplined execution, a clear capital allocation framework and focused deleveraging, resulting in enhanced financial stability and the commencement of shareholder returns through dividends and buybacks.
‘Surprisingly predictable’ and ‘predictably surprising’ growth drivers
The company continues to benefit from consistent structural drivers, notably the continued increase of global passenger traffic and higher spend per passenger, driven by its sharpened commercial focus.
Building on a foundation of innovation and data-driven insights, the company has consistently improved the customer experience with personalised, cutting-edge offerings. The introduction of new commercial formats, digital engagement tools and targeted activations has fuelled strong growth in commercial spend.
By leveraging its integrated platform and scale while enabling strict cost controls, the company achieves meaningful productivity advances across the P&L and cash flow.
Mid-term outlook and capital allocation
Reaffirming its medium-term Destination 2027 outlook, Avolta projects a +5% to +7% annual organic growth, a 20 to 40 basis points yearly improvement in core EBITDA margin, and an annual increase of 100 to 150 basis points in EFCF conversion.
Through a strategic capital allocation framework, the company drives shareholder returns by balancing business investments, progressive dividends equal to one-third of cash flow and share buybacks when the balance sheet is over-capitalised.
Avolta CEO Xavier Rossinyol said, “As the largest, most diversified travel retailer with the widest access to data in the industry, Avolta remains firmly committed to disciplined, sustainable growth in turnover, EBITDA margins and cash flow generation.
“By leveraging global PAX and SPP growth, expanding into new space and innovating across our customer journey, we create long-term value for our travellers, landlords and brand partners – and, as a result, for our shareholders.”
Avolta CFO Yves Gerster added, “Our Capital Markets Day offers clear insight into the financial discipline and consistency in execution that drives Avolta’s performance. The reliable delivery of strong results underscores the strength of our Destination 2027 strategy.
“With a reinforced balance sheet and robust financial foundation, we are well-positioned to continue delivering sustainable shareholder returns. Avolta has a compelling equity story that combines resilience, growth and long-term value creation.” ✈
