© Thomson Reuters FILE PHOTO: Dufry Group duty free shop in the departure hall of Bali's Denpassar International Airport
Anna Mackenzie and Tristan Chubba
(Reuters) – Swiss duty-free retailer Dufry reported stronger-than-expected sales in 2022 on Tuesday, helping boost travel-related sales after the lifting of pandemic-related restrictions.
The retailer, which has more than 2,200 stores at airports, cruise ships, seaports and other tourist destinations, has benefited from strong travel growth, particularly in Europe and the US.
Dufry's shares were up 2.7% by 1206 GMT, outperforming the Swiss mid-cap index.
"Better-than-expected figures were reported as travel recovery continued above expectations," said Vontobel analysts, who also pointed to Dafri's "disproportionately low" level of exposure to China.
Dufri expects China's international travel to gradually increase by the second half of 2023. Chief executive Xavier Rossignol told Reuters the group would "invest in Chinese travelers, not in China itself."
Revenues in the Asia-Pacific region increased by 149.3% in the fourth quarter compared to the same period in 2021, thanks to the easing of travel restrictions, including to countries such as China and Indonesia.
Rossignol also said it expected macroeconomic concerns, such as supply chain issues and travel restrictions, to improve this year, but that inflationary pressures would be "a bit more difficult".
"Overall, we are optimistic about the situation in 2023, while paying attention to macroeconomic factors," he said.
Dufry, which operates in 75 countries, was CHF 6.88 billion ($7.4 billion), up 76.1% from the previous year.
Like last year, Dufrey did not offer a dividend for the 2022 financial year, saying it would allow the company to focus on strengthening its financial position and completing the current business combination with Autogrill of Italy.
Dufri also reiterated his medium-term outlook for 2023-2027.
($1 = CHF 0.9297)
(Reporting by Anna Mackenzie and Tristan Chabba in Gdańsk; Editing by Friederike Heine, Milla Nissi and Jane Merriman)
