SWITZERLAND/INTERNATIONAL. Travel retailer and food & beverage operator Avolta today (7 May) spelled out the value of its broad geographic and channel diversification in posting positive Q1 results it described as “resilient”.
Turnover reached CHF2,962 million (US$3.8 billion) and CORE turnover (a reference to the reconciliation of the IFRS and CORE profit and loss statement) CHF2,905 million (US$3.7 billion), reflecting organic growth of +4.7% year-on-year (+5.9% excluding the drag from the Middle East conflict) and constant exchange rate (CER) growth of +4.0%.
CORE EBITDA reached CHF190 million (almost US$244 million) with a margin of 6.6% (+0.2% year-on-year) reflecting disciplined execution across the business, the company said. On a constant currency basis, EBITDA grew +8.4% year-on-year.
While the company’s diversified operations continue to provide resilience, management remains focused on disciplined execution and is ready to take targeted actions, if required, to protect profitability and cash flow, Avolta noted.
While visibility on the conflict’s future impact on trading remains limited, confidence in delivering the medium-term outlook is unchanged.
Growth remained resilient despite the headwind from the Middle East conflict and some timing effect from Easter, Avolta said.
Preliminary data indicates that for March and April combined, organic growth is around +3.0%, including an estimated Middle East impact of -3%.
Avola CEO Xavier Rossinyol said, “Avolta delivered a resilient first quarter, despite the Middle East conflict, underpinned by disciplined execution across the business, its diversified global platform and flexible cost base, allowing Avolta to protect its profitability and cash flow.
“This performance reflects the focus and commitment of our teams worldwide. I would like to especially thank our colleagues in, and supporting, our operations in the Middle East, whose professionalism and dedication ensure continuity for our partners and our travellers every day.”
Equity Free Cash Flow (EFCF) totalled CHF164 million (US$201.6 million), reflecting typical seasonality, working capital investments in new operations, notably the retailer’s new Shanghai Pudong International Airport duty-free contract (approximately CHF50 million/US$64.2 million), and the impact from the Middle East situation (CHF8 million/US$10.3 million).
These effects are anticipated to normalise over the course of 2026.
The company’s financial net debt stood at CHF2,724 million (US$3.5 billion) as at 31 March representing a leverage ratio of 2.1x, and down from CHF2,820 million (US$3.6 billion) and 2.2x, respectively, as at 31 March 2025. Quarter-end liquidity totalled CHF1,894 million (US$2.4 billion).
Business development advanced across both travel retail and food & beverage in the quarter. Notable wins included Zurich Airport, strengthening long-standing partnerships; Shanghai Pudong, Avolta’s duty-free entry into Mainland China; and Toronto Pearson International Airport, Canada’s busiest airport, where Avolta-controlled HMSHost recently secured a new 12-year food & beverage contract.
Avolta confirmed its medium-term outlook, targeting organic growth of +5%-7%, +20-40bps of CORE EBITDA margin improvement and +100-150bps EFCF conversion on average per annum.
This outlook, the company said, is underpinned by the strength of industry fundamentals and Avolta’s geographic- and channel- diversified business model.
“While the Middle East conflict continues to represent a near-term headwind and visibility remains limited, the Group retains the flexibility to adapt its cost base as needed to safeguard profitability, cash flow and capital allocation,” the company commented.
“Current external uncertainties are expected to be temporary in nature. At current exchange rates, 2026 currency translation is expected to be -5%.” ✈
