Avolta turnover hits $3.1 billion on travel rebound, but shares slip

By Ozan Ergenay and Paolo Laudani

(Reuters) - Swiss duty-free retailer Avolta reported first-quarter turnover of 2.83 billion Swiss francs ($3.14 billion) on Thursday and forecast growth for the year would be closer to the top of its estimates as global travel recovers.

But shares in Avolta, which have gained 13.1% so far in 2024, fell by as much as 2.7%, with one analyst saying the stock's strong run could limit any positive price reaction.

"Our guidance for the mid-term is 5% to 7% growth per year on turnover and for 2024, we think we will be closer to the top of the range," Avolta CEO Xavier Rossinyol told Reuters in an interview following the results.

Avolta, which operates in more than 1,000 locations across 73 countries and offers travellers brands ranging from Nestle to Starbucks and Burger King, posted turnover of 2.36 billion Swiss francs in the same period a year earlier.

It has been benefiting from a strong rebound in global travel, particularly in Europe and the U.S., as global passenger traffic edges closer to pre-pandemic levels worldwide.

Stifel analyst Simon Lechipre said in a note that Avolta had delivered another quarter of solid execution, which confirmed the brokerage's positive view on the stock.

"Yet, we note the stock did well into the print which could limit today's positive reaction," he added.

Avolta said turnover in the Asia-Pacific region grew by 5.5% organically to 144.3 million Swiss francs, driven by a recovery in intra-regional traffic.

($1 = 0.9004 Swiss francs)

(Reporting by Ozan Ergenay and Paolo Laudani; Editing by Alexander Smith)