Switzerland's Avolta Q3 revenue rises, maintains medium-term outlook

Overview

• Switzerland travel retailer's 9M revenue rose 0.3%; Q3 revenue rises 5.4% y/y as organic growth accelerated

• Q3 margin improved as new operations ramped up and profitability initiatives gained traction

• Company completed DFS Okinawa and Penha Duty Free acquisitions, continued share buyback program

Outlook

• Avolta confirms medium-term targets of 5%-7% organic growth per year

• Company expects annual CORE EBITDA margin to improve by 20-40bps

• Currency translation expected to have about 2% negative impact on 2026 turnover

Result Drivers

• NEW OPERATIONS RAMP-UP - Co said margin improvement in Q3 was driven by ramp-up of major new operations

• PROFITABILITY INITIATIVES - Co said initiatives to support profitability and cash generation gained traction in Q3

• STRATEGIC INVESTMENTS - Co said acquisitions of DFS Okinawa and Penha Duty Free began to contribute positively in Q3

Company press release:

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 8 "strong buy" or "buy", 9 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the miscellaneous specialty retailers peer group is "buy"

• Wall Street's median 12-month price target for Avolta AG is CHF51.50, about 14.1% above its October 28 closing price of CHF45.12

• The stock recently traded at 12 times the next 12-month earnings vs. a P/E of 15 three months ago

Reuters Recommended Reads

• Oct 28 - European banks beat profit forecasts, Brazil overshadows Santander

• Oct 28 - Unilever tops Q3 sales estimates, raises dividend

• Oct 28 - Europe's STOXX 600 subdued as earnings and oil prices weigh

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)