Dufry turnover rises +49% in first nine months; price set for next week’s IPO of Dufry South America – 01/12/06

SWITZERLAND. Dufry generated a turnover of CHF1.023 billion (US$852.7 million) in the first nine months of 2006, a surge of +49% compared to the same period in 2005.

Of this increase, organic growth was 8%, new concessions contributed 12% and growth in the company’s South American business amounted to 29%. All regions posted double-digit growth rates, said Dufry, thanks to organic growth, the positive effects of refurbishments and in part the new concessions signed during 2006.

EBITDA grew by +57% to CHF110 million (US$91.7 million) for the period. The EBITDA margin reached 10.8% compared to 10.2% last year.

Organic growth is strong and we have not been materially affected by the new security measures at airports
Dufry Group CEO Julián Diaz

Gross Profit Margin (as a percentage of turnover) increased to 51.7% in the first 9 months of 2006 compared to 49.8% in the same period of 2005. Dufry attributed the increase to improved trading conditions with suppliers as well as changes in the sales mix. The increase in Gross Profit Margin more than compensated for the increase in concession fees due to new operations and one-off start-up costs due to delays of some new projects, said the company.

Julián Diaz, CEO of Dufry Group, commented: “The results confirm that the implementation of our strategy works. Organic growth is strong and we have not been materially affected by the new security measures at airports. At the same time, we have continued to improve our profitability and we have further strengthened our concession portfolio with a number of new projects in 2006, for which we will see the full impact in 2007.”

Turnover in Region Europe was CHF290.5 million compared to CHF255.1 million in the same period in 2005. In North America & Caribbean turnover hit 281.2 million, up from CHF222.3 million in 2005. In Region South America turnover was CHF202.3 million, up from CHF1.7 million (due to the acquisition of Brasif and Eurotrade in Brazil). In Africa turnover was CHF111.3 million compared to CHF97.9 million, while in Eurasia & Asia turnover was CHF137.6 million against CHF109.2 million last year.

Dufry South America Ltd. will launch its IPO (Initial Public Offering) on 5 December 2006, with trading expected to begin in the week of 18 December 2006. The price range has been set at US$10.50-12.50 per share, which would represent a market capitalization of US$680-810 million. A maximum of 32 million shares will be made available. Parent company Dufry AG will retain a stake of at least 51% and no new shares will be issued.

The IPO will launch on the Luxembourg and Brazilian Stock Exchanges.

Dufry has started new projects in 2006 in Basel-Mulhouse (Switzerland), Spain (Tenerife, Mallorca and Bilbao), Belgrade (Serbia), Grand Turk and Dominican Republic (Caribbean), Morocco and Algiers (Algeria).

Dufry also signed projects this year which will start in 2007 in Hong Kong, Sharm el-Sheikh (Egypt) and most recently Moscow Sheremetyevo International airport. All together, Dufry has added 9,800sq m of retail space through new projects and expansions in 2006, bringing the total retail surface it operates to more than 77,000sq m.


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