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

By Reuters News


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

Metric

Beat/Miss

Actual

Consensus Estimate

9M IFRS Revenue

CHF 10.66 bln

9M IFRS Operating profit

CHF 882 mln

9M Adjusted EBITDA Margin

10.00%


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.)

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