Dufry : concludes difficult 12 months 2020 with robust liquidity,; full money stream management and strategic initiatives; to drive restoration and development

Julián Díaz, CEO of Dufry Group, commented: ‘Whereas Dufry has evidently been impacted by the COVID-19 pandemic as have many different firms within the journey and tourism trade, I’ve seen a deep emotional engagement and a robust willpower by all our workers to beat this difficult state of affairs. From the Board of Administrators, to our administration groups and all through all ranges of our group, we’ve labored in shut alignment to search out, plan and implement the correct options to mitigate the influence of this disaster and lay the foundations upon which we’ll emerge as a stronger firm.

This optimistic angle and dedication has allowed us each, to adapt the corporate to the brand new market surroundings in a short time and to implement necessary and resilient price financial savings, thus getting ready our group for the restoration and past. In parallel, we’ve succeeded in placing the corporate on strong monetary floor and seized alternatives, which give outstanding development potential and contribute to the long run improvement of Dufry.

With the profitable financing measures applied in 2020, the help of current and necessary new shareholders, the finalization of our reorganization in addition to the monetary and managerial flexibility to interact in strategically related initiatives and development alternatives Dufry is effectively positioned to drive restoration and development acceleration past the present disaster.

Greater than ever, my immense gratitude goes to our workers and administration groups for his or her ongoing motivation, dedication and extraordinary efforts, in supporting the restructuring, negotiating with our enterprise companions and securing the monetary power of the corporate. We now have created a strong and resilient base on which we will construct going ahead.

On behalf of the entire firm, we additionally wish to keep in mind the colleagues we’ve sadly misplaced and lengthen our condolences to their households, whereas wishing any colleagues who suffered with the virus a swift and full restoration.’


In 2020, Dufry’s efficiency was impacted by the unprecedented degree of disruption in its retail operations, pushed by worldwide journey restrictions applied by governments worldwide and short-term operational shut-downs of airports, cruise traces and different channels.

In CHF million 2020 2019 Var.
Turnover 2,561.1 8,848.6 -71.1%
Gross Revenue 1,377.3 5,323.2 -74.1%
Gross Revenue Margin 53.8% 60.2% -6.4p.p
Lease Bills 8.0 -1,372.9 1,380.9
thereof MAG Aid[3] 380.3
Personnel Bills -716.0 -1,243.3 -42.4%
Different Bills, internet[4] -328.2 -561.6 -41.6%
Depreciation & Amortization -1,648.7 -1,722.7 -4.3%
Impairment -1,193.2 -54.3 -1,138.9
Working Revenue (EBIT) -2,500.8 432.8 -2,933.6
Internet Revenue to Fairness Holders -2,513.7 -26.5 -2,487.2
Primary EPS -43.0 -0.5 -42.5
Adjusted Working Revenue (Adj. EBIT) -1,561.6 767.7 -2,329.3
Adjusted Internet Revenue -1,658.4 349.3 -2,007.7
Adjusted EPS -28.4 7.00 -35.4
Adjusted Working Money Circulation -405.9 960.0 -1,365.9
Lease Funds, internet -401.8 -1,263.7 -68.2%
Capex -106.0 -245.3 -56.8%
NWC Adjustments -313.9 -24.4 -289.5
Fairness Free Money Circulation -1,027.3 383.3 -1,410.6
Internet Debt 3,344.2 3,101.9 242.3

In 2020, turnover reached -69.8% versus 2019 at fixed forex, primarily impacted by the pandemic-related journey restrictions. Natural development for the 12 months stood at -69.8% with like-for-like at -67.2% as a result of lowered passenger site visitors throughout most airports and different travel-related channels globally. Internet new concessions represented -2.6%. The translational FX impact within the interval was -1.3% primarily on account of the USD weak point. Regardless of the shift in journey habits as a result of restrictive measures – extra home and intra-regional journey, strongest decline in worldwide and enterprise – the class combine remained almost unchanged in comparison with FY 2019 with highest demand for perfumes & cosmetics, adopted by meals & confectionary. Obligation paid gained in demand pushed by home and intra-regional journey, with no important channel shift regardless of journey restrictions.

Turnover Development This fall ’20 This fall ’19 FY ’20 FY ’19
Like for Like -74.5% 2.2% -67.2% 0.6%
New concessions, internet -1.6% 0.9% -2.6% 2.4%
Natural Development -76.0% 3.1% -69.8% 3.0%
Change in Scope[5] 0.0% 0.4% 0.0% 0.1%
Development in fixed FX -76.0% 3.5% -69.8% 3.1%
FX Influence -1.5% -1.5% -1.3% -1.2%
Reported Development -77.5% 2.0% -71.1% 1.9%

Money stream metrics proved comparatively resilient contemplating the numerous drop in gross sales brought on by the pandemic-related store closures. Adjusted working money stream reached CHF -405.9 million in 2020 in comparison with CHF 960.0 million in 2019. Fairness Free Money Circulation stood at CHF -1,027.3 million in 2020 in comparison with CHF 383.3 million within the earlier 12 months. Money outflow through the first half 2020 was primarily attributable to concession charge funds, stock construct and tax, whereas throughout the remainder of the 12 months, money consumption, outlined as EFCF, was considerably lowered with a month-to-month common money consumption of CHF 45.7 million within the second half of 2020. Contributing have been general financial savings of CHF 1,312.1 million in FY 2020 with MAG aid of CHF 551.4 million, personnel and different expense financial savings CHF 527.3 million and CHF 233.4 million respectively, considerably overachieving the beforehand communicated goal of round CHF 1 billion.

Internet debt amounted to CHF 3,344.2 million on the finish of December 2020 in comparison with CHF 3,102.0 million in December 2019. Dufry’s liquidity place amounted to CHF 1,905.7 million as of December 31, 2020, together with:

  • Money and money equivalents of CHF 360.3 million
  • Accessible credit score traces of CHF 1,441.3 million
  • Accessible uncommitted traces of CHF 104.1 million

The robust liquidity place was, along with important price financial savings and tight money stream administration, additionally achieved via the profitable execution of a sequence of monetary initiatives in 2020, together with a share placement, convertible bond issuances, entry to extra financial institution loans and a rights difficulty. General, gross proceeds amounted to CHF 1,992.9 million. A part of the proceeds, CHF 279.9 million together with transaction-related prices, have been used for the acquisition of all remaining fairness curiosity in Hudson, Dufry’s North America enterprise, and its delisting from the New York Inventory Trade. The transaction efficiently closed in December 2020, and the re-organization and restructuring to materialize the above-mentioned price financial savings have been finalized in early 2021.


Dufry continued to deploy capital expenditures (Capex) in accordance with its enterprise necessities and restoration trajectory, which reached CHF -106.0 million for the full-year 2020 in comparison with CHF -245.3 million in full-year 2019, according to the revised Capex goal introduced beforehand.

The full gross retail house opened throughout 2020 accounted for 9,600 m² representing 2% of the general retail house operated by Dufry. Highlights included the opening of Dufry’s new model paradise ANECDOTE on the Circle, Zurich Airport (CH), an unique duty-paid landside retailer, in addition to the beginning of new operations at Istanbul’s Sabiha Gökçen Worldwide Airport in This fall 2020. Dufry received this twelve-years concession contract at Turkey’s second largest and most conveniently positioned capital metropolis airport on the finish of the 12 months. At Dallas Love Discipline Airport (US), as the primary of a number of places throughout the US, Dufry opened most not too long ago the Hudson Nonstop retailer with Amazon’s Simply Stroll Out know-how for handy, contactless purchasing. The concession contract at St. Petersburg Pulkovo Airport was efficiently renewed for an additional seven years.

Additional new outlets have been opened, amongst others, in Helsinki (FI), Bergamo (IT), Singapore (CN), Perth (AU), Florianopolis (BR), Fortaleza (BR), Puerto Vallarta (MX), and several other location within the US, e.g. Salt Lake Metropolis, New York, Nashville. Refurbished and expanded outlets accounted for 12,800 m² representing nearly 3% of general retail house operated by Dufry, and included amongst others, Dufry’s operations in Genova (IT), London Stansted (UK), Corfu (GR), Athens (Greece), Belgrade (RS), Thessaloniki (GR), Antalya (TR), Guayaquil (EC), Los Angeles (US), and Atlanta (US).

In January 2021, Dufry introduceda cooperation settlement with Hainan Growth Holdings (HDH). The primary store of the collaboration is the World Obligation Free Plaza on the Mova Mall within the city-center of Hainan’s capital Haikou in China, which opened on January 31, 2021, and with additional extensions deliberate for Q3 2021 and in Q1 of 2022. The complete advanced, as soon as absolutely accomplished, will span 38,920 m2 of retail house, providing over 350 manufacturers. The opening of the brand new Mova Mall duty-free store represents Dufry’s first involvement in a duty-free operation in mainland China and is a crucial improvement within the engaging Hainan market.

In March 2021, Dufry has been awarded a brand new concession license at Sangster Worldwide Airport in Montego Bay, Jamaica, for duty-free and duty-paid operations, rising its present retail house from 1,800 m² to 2,260 m² in whole. Present pipeline alternatives stand at round 31,500m² as of end-February 2021.


Contemplating all measures taken all through 2020, Dufry expects to be effectively positioned for the re-opening and development acceleration past the present disaster. For 2021, the Firm offers once more, as for FY 2020, turnover eventualities to the market, that are according to estimates of main trade associations. Situations and respective sensitivities for concession charges, personnel bills, different bills, Capex as effectively Fairness Free Money Circulation are supplied in Dufry’s FY 2020 investor presentation.

Based mostly on its re-organization and restructuring with decisive measures taken, Dufry expects recurring fastened price financial savings of round CHF 400 million, with sustainable discount of round CHF 280 million from personnel bills and round CHF 120 million from different bills (excluding inflation). As well as, Dufry stays in negotiations with its lessors reviewing lease phrases, in an effort to accommodate these in keeping with market circumstances created by COVID-19 for and past 2020.

Consistent with journey restrictions and resuming of operations by airports and different landlords, Dufry is re-opening its retail companies steadily, following single-location productiveness eventualities. As per finish February, round 1,300 outlets globally have been open, representing round 60% in gross sales capability in comparison with full-year 2019. Most at present re-opened outlets embrace places within the US, amongst others, Denver, Atlanta, Miami, Tampa, in UK, Greece, Spain, Morocco, Chile, Colombia, and in Puerto Rico. On the finish of March, Dufry expects to function round 60% of retailers, representing 65% of gross sales capability.

In February, Dufry estimates natural development to have reached -77.7% in comparison with February 2019[6]. Dufry expects an enchancment of the enterprise in 2021, nonetheless, visibility on the form and tempo of the restoration continues to be restricted. Consequently, Dufry focuses on the safety of its liquidity whereas creating shareholder worth via natural development alternatives – e.g. by accelerating growth in Asia, via digitalization or additional channel diversification – with a mid-term give attention to deleveraging, opportunistic M&A if accretive and a re-initiation of dividend funds relying on the restoration trajectory. Due to this fact, the Board of Administrators will suggest to the 2021 Annual Basic Assembly to maintain the dividend cost for the enterprise 12 months 2020 suspended.

Based mostly on the efficiencies created via Dufry’s re-organization, its price saving targets and tight money administration, Dufry expects a return to 2019 profitability and money technology ranges even earlier than full turnover restoration. Trade associations are estimating a full restoration of passenger numbers to a 2019 degree between the tip of 2022 and 2024.

All through 2020, Dufry continued to give attention to strengthening its sustainability method by revising its ESG technique and introducing new initiatives round buyer expertise, environmental safety, worker relations and trustful partnerships. Additional info is supplied in Dufry’s 2020 Sustainability Report.


Regional efficiency

Following the reorganization introducedin June, Dufry began to report beneath a brand new organizational setup as of September 1, 2020. Headquarters and divisions have been built-in and international locations have been grouped right into a lowered variety of clusters to raised align the group to the brand new enterprise surroundings, to extend efficiencies and simplify the decision-making processes. Consistent with operational administration, Dufry reported the aligned regional setup from Q3 2020 onwards. Historic info beneath the brand new organizational setup has already been printed and is obtainable on Dufry’s web site.

Europe, Center East and Africa

Turnover within the area was CHF 1,144.5 million in 2020 from CHF 4,434.2 million one 12 months in the past. Natural development within the division reached -73.2% within the 12 months and -81.3% within the fourth quarter.

Efficiency improved in July and August throughout Europe, particularly in Southern Europe with the height of the summer time holidays and supported by the lifting of journey restrictions. From end-August onwards, some international locations resembling Spain, France and the UK noticed elevated COVID-19 circumstances, leading to renewed journey limitations put in place extra broadly from finish of September onwards. The Mediterranean area, but additionally Japanese Europe, Russia, the Center East and Africa carried out above common for the area, pushed by much less restrictions and accessible journey corridors, e.g. between Russia and Turkey.


Turnover amounted to CHF 160.0 million in 2020 from CHF 691.6 million in 2019 and natural development for the 12 months stood at -75.4% and -83.8% within the fourth quarter, as Dufry’s footprint within the area is geared in the direction of worldwide journey, which continues to be extremely impacted. The APAC area was the primary impacted and shutting borders for inbound and outbound journey because the pandemic appeared within the area.

Nearly all of the outlets in Dufry’s Asia-Pacific places have been closed, together with Australia, Hong Kong, Indonesia, Malaysia, South Korea, as situations weren’t useful for worldwide journey.

Central & South America

Turnover stood at CHF 497.3 million in 2020 versus CHF 1,536.1 million in 2019, with natural development within the area reaching -65.8% within the 12 months and -69.5% within the fourth quarter.

Central America and Caribbean, together with Mexico, Dominican Republic and the Caribbean Islands, have been performing extra robustly in comparison with all different areas, pushed by journey from the US and South America in addition to worldwide journey as extra versatile journey situations met continued demand. The cruise enterprise, positioned within the area, was closely impacted. South America noticed demand pick-up within the fourth quarter amid border store openings and enhance of home and intra-regional journey, with re-openings in Argentina, Brazil, Peru, amongst others.

North America

Turnover amounted to CHF 644.4 million in comparison with CHF 1,935.8 million in 2019 and natural development got here in at -65.3% within the 12 months and -69.7% within the fourth quarter. The area, particularly the US, carried out above group common as a result of increased publicity to home journey. Intra-regional journey from the US to Central America was additionally supportive. Our operations in Canada remained negatively impacted as a result of a better publicity to worldwide flights and ongoing restrictive measures. The efficiency was pushed by Hudson comfort shops, meals and beverage and different duty-paid choices.

Turnover, in CHF million This fall 2020 This fall 2019 Reported Development Natural Development
Europe, Center East and Africa 192.5 1,069.4 -82.0% -81.3%
Asia Pacific 25.5 166.3 -84.7% -83.8%
Central and South America 106.7 465.9 -73.2% -69.5%
North America 130.6 398.4 -72.0% -69.7%
Distribution Facilities 31.9 66.5 -52.0% -42.5%
Dufry Group 487.2 2,166.6 -77.5% -76.0%
Turnover, in CHF million FY 2020 FY 2019 Reported Development Natural Development
Europe, Center East and Africa 1,144.5 4,434.2 -74.2% -73.2%
Asia Pacific 160.0 691.6 -76.9% -75.4%
Central and South America 497.3 1,536.1 -67.6% -65.8%
North America 644.4 1,935.8 -66.7% -65.3%
Distribution Facilities 114.9 250.9 -54.2% -40.4%
Dufry Group 2,561.1 8,848.6 -71.1% -69.8%


Gross Revenue margin (GPM)

Gross revenue reached CHF 1,377.3 million in 2020 in comparison with CHF 5,323.2 million within the earlier 12 months, reaching a Gross revenue margin of 53.8%. Margin was affected by the turnover combine from the retail versus the wholesale enterprise, short-term stock administration via wholesale and promotions, and a better duties and freight ratio.One-time stock write-offs associated to the closely impacted cruise enterprise and liquidation applications carried out throughout 2020 accounted for 350 foundation factors. Buying costs haven’t been affected by the pandemic and Dufry expects a normalization of its Gross revenue margin according to gross sales restoration.

Adjusted Working Revenue (Adjusted EBIT)

Adjusted operating profit (adjusted EBIT) reached CHF -1,561.6 million in 2020 versus CHF 767.7 million the identical interval of 2019.Lease bills mirrored an revenue of CHF 8.0 million in 2020 in comparison with CHF -1,372.9 million in 2019. Bills decreased as a result of decrease degree of gross sales and COVID-19 associated reliefs of minimal assured quantities (MAG) negotiated with airport authorities and landlords. MAG reliefs confer with waiving of fastened lease elements and implementing variable concession schemes as an alternative, or to adjusting fastened MAGs to decrease passenger numbers in addition to lowered flights and working hours. As much as December 31, 2020 Dufry was capable of shut a number of agreements releasing about CHF 551.4 million of lease obligations, thereof CHF 380.3 million acknowledged within the 2020 P&L assertion as MAG reliefs, with the rest topic to totally different IFRS-16 accounting therapies and recognition over time.Personnel expenses amounted to CHF -716.0 million in 2020, from CHF -1,243.3 million one 12 months earlier, thus representing a lower of -42.4% in comparison with 2019. Financial savings have been pushed by Dufry’s effectivity program, which included lowering prices in any respect ranges, making use of presidency help schemes at any time when attainable, in addition to the implementation of voluntary wage discount schemes, additionally supported by Dufry’s World Government Committee and Board of Administrators. Personnel expenses embrace CHF 73.3 million for restructuring, accrued in 2020.Different expenses internet reached CHF -328.2 million in 2020 versus CHF -561.6 million[7]in the identical interval final 12 months. The lower of -41.6% in comparison with 2019 displays the initiatives to cut back as a lot as attainable all working bills, in addition to the impact of implementing the centralized OPEX administration as a part of the Group re-organization.Depreciation, amortization and impairments amounted to CHF -2,841.9 million in 2020 versus CHF-1,777.0 million final 12 months. The rise is expounded to the popularity of impairments of CHF -1,193.2 million in 2020 as a consequence of the pandemic, whereof CHF -443.1 million are impairments on right-of-use property and CHF -712.8 million confer with impairments on acquisition-related intangible property. Practically all Dufry outlets worldwide have been required to shut to assist curb the unfold of COVID-19 or have been topic to very low passenger site visitors, all these affecting severally the precise turnover, in addition to projections. An general quantity of CHF 1,024.8 million of impairments is expounded to depreciable and amortizable assets, and characterize a timing shift on this regard. Solely CHF 131.1 million are associated to goodwill impairments, which have been already disclosed with half-year 2020.

Internet Revenue

Internet revenue to fairness holders of the dad or mum was CHF -2,513.7 million in 2020 versus CHF -26.5 million in the identical interval final 12 months. Monetary outcomes (excluding lease curiosity and FX) amounted to CHF -191.8 million versus CHF -127.6 million within the earlier interval, as a result of one-off bills associated to financing measures, in addition to decrease curiosity revenue.

Revenue tax reached CHF 130.7 million versus CHF -78.2 million final 12 months, pushed by the loss state of affairs of most of operations. Minorities participated with CHF -226.8 million for 2020 within the internet revenue of the Group (versus CHF 56.6 million final 12 months).

Adjusted internet revenue was CHF -1,658.4 million in 2020 versus CHF 349.3 million final 12 months. The respective adjusted Earnings per Share (EPS) primarily based on 58.5 million weighted common variety of odd shares excellent was CHF -28.4 within the interval versus CHF 7.00 within the earlier 12 months.

Money Circulation

Adjusted working money stream was CHF -405.9 million in 2020 in comparison with CHF 960.0 million in 2019. Fairness Free Money Circulation stood at CHF -1,027.3 million in 2020 in comparison with CHF 383.3 million within the earlier 12 months.Internet lease funds in full-year 2020 amounted to CHF -401.8 to million versus CHF -1,263.7 million final 12 months. The discount was pushed by reliefs obtained from landlords. Adjustments in working capital reached CHF -313.9 million in 2020, in comparison with CHF -24.4 million in 2019; modifications in core working capital amounted to CHF -73.2 million in comparison with CHF 22.4 million in 2019. The principle drivers for the variation have been the lower in commerce payables of CHF –490.7 million with full funds to suppliers in This fall 2020 in addition to different accounts payable as a result of a lower in accrued concession charge payables of CHF –98.4 million. Inventories decreased by CHF -390.4 million as a result of stock restructuring and efficiencies in liquidations. Dufry expects a working capital influx in 2021, with a full reversal with gross sales normalization.

Capex was considerably lowered from CHF -245.3 million in 2019 to CHF -106.0 million in 2020, as the corporate put Capex investments on maintain as a lot as attainable since March 2020 and by adapting its general Capex deployment method. Due to this fact, Dufry expects no catch-up in Capex within the short- or mid-term.

The complete set of monetary info are supplied in Dufry’s 2020 Annual Report.

[1]Natural development at fixed trade fee (CER)

[2] Adjusted outcomes exclude distinctive bills and revenue resembling acquisitions and divestitures, impairments and amortization of acquisition-related intangible property, in addition to recurring solely IFRS 16 accounting-related gadgets resembling curiosity on lease obligations. Please see the main points on web page 239 of the 2020 Annual Report

[3] Refers to quantity of MAG aid acknowledged in P&L solely as a result of IFRS 16 therapy; general MAG aid of CHF 551.4 million for FY 2020.

[4] Reported FY 2019 different bills, internet of CHF -497.2 million embrace CHF 64.4 million non-recurring revenue.

[5] No modifications in general retail house (‘scope’) in 2020, as optimistic contribution of the acquisitions of RegStaer Vnukovo (Russia) and the Brookstone airport shops (US), performed in November and October 2019 respectively, offset by disinvestments in 2019 (outlined as closure of all operations in a selected location).

[6] Natural development February 2021, preliminary quantity (unaudited).

[7] Reported FY 2019 different bills, internet of CHF -497.2 million embrace CHF 64.4 million non-recurring revenue.

For additional info, please contact:

Supply hyperlink

About Darnell King

Check Also

Dillard’s actions give it all

Dillard’s (NYSE: DDS, 30-year-old Financials) stock would be significantly overvalued, according to GuruFocus Value’s calculation. …