IonQ partners with Emergence Quantum to expand APAC presence
Investing.com -- Avolta on Wednesday reported a strong financial performance for 2024, with revenues increasing by 8.9% at constant exchange rates and organic growth reaching 6.3%.
The Swiss-based travel retailer posted a turnover of CHF 13.725 billion, with a core EBITDA of CHF 1.27 billion, reflecting a 12.2% year-on-year increase and a margin of 9.4%.
Equity free cash flow saw a rise of 32% from the previous year, reaching CHF 425 million, indicating strong cash generation and disciplined cost management.
Avolta’s commitment to shareholder value was evident in its capital allocation strategy, which included a leverage ratio of 2.1x, or 1.9x when adjusted for treasury share purchases.
The company canceled 6.1 million shares, representing 4% of issued share capital, in December 2024.
Additionally, a dividend of CHF 1.00 per share, marking a 43% increase from the previous year, will be proposed at the May 2025 Annual General Meeting. A share buyback program of up to CHF 200 million for 2025 was also announced.
The company’s financial performance varied across its operational regions. In Europe, the Middle East, and Africa, turnover reached CHF 6.93 billion, reflecting a 10.6% year-on-year growth, with organic growth at 9.4%.
North America experienced an increase in turnover to CHF 4.30 billion, marking an 8.2% reported growth and 5.6% organic growth.
In Latin America, turnover declined by 5% to CHF 1.57 billion, primarily due to external economic factors. Asia Pacific saw a 3.8% revenue increase to CHF 579 million, despite a -2.8% FX impact.
Operationally, Avolta expanded its presence into new markets, making its debut in Saudi Arabia at Riyadh’s King Khalid International Airport and entering Tunisia through five major airports.
The company also secured new concessions at John F. Kennedy International Airport, strengthening its North American presence.
Additionally, the acquisition of Free Duty concessions in Hong Kong reinforced its partnership with the Mass Transit Railway, giving Avolta a comprehensive presence in all border store locations across the region.
Avolta further advanced its digital strategy with the Club Avolta loyalty program, now boasting over 10 million members and contributing more than 5% of annual revenue.
The company also launched Avolta NEXT, an innovation hub designed to accelerate technological advancements in travel retail and F&B, alongside smart stores and the AI-driven Avolta GPT, which enhances customer insights and market analysis.
The company’s strong cash flow performance enabled further investments and debt management.
By the end of 2024, net debt stood at CHF 2.663 billion, down from CHF 2.696 billion in 2023. The company’s Equity Free Cash Flow reached CHF 425 million, a 32% increase year-on-year, reflecting disciplined cost control and active portfolio management.
Avolta successfully refinanced its EUR 800 million bond due in October 2024 and extended its Revolving Credit Facility (RCF) by two years to 2029, a move expected to generate CHF 10 million in annual interest savings.
CEO Xavier Rossinyol emphasized Avolta’s focus on growth through business development, commercial and digital transformation, and financial discipline.
He highlighted the company’s ability to adapt dynamically to evolving consumer trends while maintaining a strong financial footing. “For two consecutive years, we have exceeded our expectations with strong organic growth, driving the travel experience revolution,” Rossinyol stated.
He also expressed confidence in Avolta’s outlook for 2025, citing a 9.5% revenue growth year-to-date as of February 28, and the company’s broad geographic presence across 70 countries as key strengths in navigating global uncertainties.
Avolta reaffirmed its medium-term targets, aiming for organic growth between 5% and 7% per annum, an improvement in core EBITDA margin by 20 to 40 basis points annually, and an increase in EFCF conversion by 100 to 150 basis points per year.
At current exchange rates, the company expects currency translation effects to be neutral in 2025.