Dufry Sees Southern European Tourism Rebound Driving Salesby
Shares rise as much as 7.4% as terror effects start to fade
Record level of bookings in southern Europe bodes well for co.
Dufry AG, a Swiss operator of duty-free stores in airports and bus depots, said first-quarter earnings rose 59 percent, beating analyst estimates amid stronger demand in southern Europe.
Earnings before interest, taxes, depreciation and amortization rose to 146.5 million Swiss francs ($153.5 million), the Basel, Switzerland-based company said in a statement Tuesday. Analysts expected 141 million francs, according to the median estimate in a Bloomberg survey. The shares rose as much as 7.4 percent.
Spain, Greece and Italy are reporting record numbers of bookings and the company forecast a “very strong” performance in the region this year. That may bode well for European retailers and luxury-goods makers who have suffered from a drop in tourism after the November terror attacks in Paris and the March bombings in Brussels.
Spain showed “strong” double-digit growth, while France, Italy, Malta and Portugal also supported the region. Turkey is still suffering from the absence of Russian consumers, the company said.
“Europe had another strong quarter and countries impacted by Brazilians and
Russians continued to recover,” Chief Executive Officer Julian Diaz said in the statement, adding that organic growth will gradually improve throughout the year and will end up positive for 2016.
Separately, the company said the integration of World Duty Free SpA will be completed by mid-2017. Dufry had acquired its Italian rival for 2.6 billion euros last year, creating a business with almost a quarter of the airport retail market.