By Dufry, the Swiss travel retailer, has revised its guidance for 2023 after experiencing growth in the third quarter. Driven by robust demand and its recent merger with Autogrill, the company is optimistic about its future prospects.
Improved Expected Core Earnings
Dufry now anticipates a core earnings before interest, taxes, depreciation, and amortization (EBITDA) margin of between 8.5% and 8.7% for 2023. This marks an increase from its previous forecast in August, which predicted a margin between 30 basis points and 40 basis points higher than the original guidance of approximately 8%.
Forecasted Turnover Growth
The company also expects a turnover growth of 15% compared to the previous year’s results for the pro forma combined business with Autogrill. However, currency movements are anticipated to have a 5% to 7% negative impact on growth. Dufry’s organic growth projection for the year stands at around 20% on a constant currency basis.
Impressive Q3 Results
In the third quarter, Dufry reported a turnover of 3.67 billion Swiss francs ($4.04 billion), representing a significant 73% increase compared to the same period last year. After considering the results of the combined group, turnover grew by 16% on an organic basis.
Furthermore, Dufry’s core EBITDA for the quarter amounted to CHF401.7 million, resulting in a healthy margin of 11%. In contrast, during the third quarter of the previous year, before the merger with Autogrill took place, the company recorded a core EBITDA of CHF236.7 million.
Dufry’s positive performance in Q3 has prompted increased optimism and confidence in its future potential.
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