Avolta (AVOL) CMD 2025 summary

Strategic Direction and Execution

• Destination 2027 strategy is built on travel experience revolution, geographical diversification, operational improvement, and sustainability/people focus, powered by digital and data capabilities.

• Merged F&B and retail, advanced digital transformation, launched Club Avolta loyalty program, and expanded into new countries and concessions.

• Emphasis on personalized retail and F&B concepts, data-driven customer engagement, and innovation to enhance traveler experience and drive growth.

• Active portfolio management, zero-based budgeting, and integration teams deliver synergies and operational efficiencies.

• Strong focus on sustainability, people development, and fostering a culture of continuous improvement.

Financial Performance and Guidance

• Achieved CHF 13.5 billion turnover in 2024, with 10.5% CAGR since 2022, and EBITDA margin improving to 9.4% in 2024.

• EFCF conversion reached 33.5% in 2024, with a mid-term outlook for organic growth of 5–7% p.a., EBITDA margin expansion of 20–40 bps, and EFCF conversion improvement of 100–150 bps.

• Leverage reduced from 4.8x in 2022 to 1.9x in 2024, with significant deleveraging and strong operating cash flow.

• Dividend per share increased by 43% YoY to CHF 1.00 in 2024, with CHF 650 million returned to shareholders in 2023-2024 and a CHF 200m buyback for 2025.

• Asset-light model and highly variable cost structure underpin resilient margins and sustainable cash conversion.

Growth Drivers, Business Model, and Market Position

• Growth is driven by increasing passenger numbers, higher spend per passenger, and new space from renewals, tenders, direct negotiations, and M&A.

• Operates the largest global network in travel retail and F&B, with exposure to 2.5 billion passengers across 70 countries and 5,100+ outlets.

• Club Avolta loyalty program has 11 million members, with members spending three times more than non-members and generating 5.5%-6% of total sales.

• Data-driven assortment, dynamic pricing, flexible store formats, and hybrid F&B-retail concepts enhance differentiation and customer engagement.

• Portfolio is resilient to geopolitical and macro shocks due to diversification, with growth in Asia-Pacific and emerging markets as a strategic focus.