Avolta turnover reaches CHF6. 6bn despite Middle East disruption
Avoltareported turnover of CHF6. 57bn for the first half of 2026, delivering what the travel retailer described as a resilient performance despite geopolitical disruption in the Middle East and the ramp-up of. . .
Avoltareported turnover of CHF6. 57bn for the first half of 2026, delivering what the travel retailer described as a resilient performance despite geopolitical disruption in the Middle East and the ramp-up of major operations at New York JFK and Shanghai Pudong airports. IFRS operating profit reached CHF441m, while CORE turnover was CHF6. 44bn, representing organic growth of 3. 7% and constant exchange rate growth of 3. 1%. Excluding the impact of disruption in the Middle East, organic growth would have reached 5. 2%. Sales momentum improved during the second quarter following a muted April. Organic sales increased by 2. 9% in Q2, or 4. 6% when excluding the impact of the Middle East conflict. CORE EBITDA totalled CHF583m, up 0. 6% year on year at constant exchange rates, while the EBITDA margin declined by 0. 2 percentage points to 9. 1%. Eatly operated by Avolta at JFKAvolta said profitability was temporarily affected by disruption in the Middle East and the early-stage ramp-up of its new JFK and Pudong operations. Excluding these factors, the CORE EBITDA margin would have been approximately 9. 5%. Cash generation strengthened significantly in the second quarter, with equity free cash flow reaching CHF370m during the period and CHF207m across the first half. Financial net debt stood at CHF2. 70bn at the end of June, bringing Avolta’s leverage ratio down to 2. 07x, compared with 2. 15x a year earlier. The group said underlying performance continued to improve despite geopolitical headwinds, with organic growth reaching 4. 1% in July, or 4. 8% excluding the Middle East. Avolta reconfirmed its medium-term outlook and said safeguarding measures had been implemented to support profitability and cash generation during the second half. It added that the Middle East disruption and operational ramp-up effects were temporary and did not affect its longer-term expectations. Contract wins and expansionDuring the half, Avolta entered Latvia through a 12-year master concession at Riga Airport and continued to expand in Saudi Arabia. The company also secured contract wins and extensions across Switzerland, Italy, Belgium and the UK. In North America, Avolta reported new travel retail, convenience and food and beverage agreements, alongside further developments at airports including Orlando, Miami, Phoenix, Palm Beach, Toronto, Jacksonville and Norfolk. At JFK Airport, the company reached several milestones, including opening the first Eataly location at a North American airport. In Latin America, Avolta launched its retail partnership withNorwegian Cruise Line, opened new duty-free stores in the Dominican Republic and delivered commercial activations across Mexico, Brazil and Argentina. Avolta launched its partnership with NCL cruise lineThe company also expanded its Asia Pacific presence, entering Japan through food and beverage operations at Kansai International Airport and commencing operations at Shanghai Pudong Airport. Its acquisition of DFS Okinawa is expected to close imminently and be immediately accretive to earnings. Avolta said investments in Pudong, JFK and other locations would support long-term profitable growth. Club Avolta reaches 20 million membersAvolta’s digital and loyalty platform also continued to expand, with Club Avolta reaching 20 million members during the period. Its partnership with Air Canada’s Aeroplan represented the company’s first North American airline loyalty collaboration and further strengthened its customer engagement platform. Avolta also executed CHF106m of share repurchases under its ongoing buyback programme of up to CHF225m. Xavier RossinyolAvolta CEO Xavier Rossinyolsaid: “The first half of 2026 highlighted once again the strength of Avolta’s business model and the dedication of our teams around the world to execute our strategic priorities. “Our diversified global platform once again proved its resilience, with sales performing at or above prior-year levels across most of the business and underlying momentum improving through the second quarter. While near-term volatility persists, we continue to deliver against our medium-term strategy and take the necessary measures to protect profitability and cash generation, while progressing the ramp-up of our new operations. “We remain firmly focused on the medium and long-term. In the first half, we further strengthened our global footprint through strategic wins, including our entry into Japan, expansion in China and a 12-year master concession in Latvia. Together with our continued focus on execution, efficiency and disciplined capital allocation, this gives us confidence in Avolta’s ability to deliver sustained value creation in line with our medium-term ambitions. ”