Avolta reports strong Q2 organic growth despite FX headwinds

Published 31/07/2025, 07:32
© Reuters.

Investing.com -- Avolta released its Q2 2025 results on Thursday, showing core turnover of CHF3,562 million, a slight year-on-year increase of 0.1% from CHF3,558 million in Q2 2024.

The company’s organic growth reached 6.0%, matching last year’s performance and surpassing the consensus expectation of 5.1%.

This growth was driven by steady increases in passenger volumes and average spend per passenger.

However, a significant -6.1% foreign exchange headwind impacted sales, while inorganic growth contributed just 0.1%.

Core EBITDA rose to approximately CHF416 million, representing a 4% increase from CHF400 million in the same period last year.

The core EBITDA margin improved to 11.6% from 11.2% in Q2 2024, exceeding analyst expectations of CHF412 million by about 1%.

Core EFCF (equity free cash flow) grew 9% year-on-year to CHF320 million, outperforming the consensus estimate of CHF309 million by 4%.

Avolta confirmed its mid-term guidance for fiscal year 2027, targeting annual organic core turnover growth of 5-7%, core EBITDA margin improvement of 20-40 basis points per year, and core EFCF uplift of 100-150 basis points annually at constant currency.

The company’s CEO expressed cautious optimism about second-half performance, noting that organic growth through July has remained consistent with first-half results.

Regional performance varied significantly, with EMEA, APAC, and LATAM regions all achieving organic growth exceeding 7.7%.

North America was the only underperforming region, recording a slight organic decline of 0.2% due to weaker passenger traffic in the USA.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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