Download PDF

1. Company Snapshot

1.a. Company Description

Avolta AG operates as a travel retailer.The company's retail brands include general travel retail shops under the Dufry, World Duty Free, Nuance, Hellenic Duty Free, Colombian Emeralds, Duty Free Uruguay, Hudson, Duty Free Shop Argentina, RegStaer, Autogrill, Hellenic Duty Free, HMSHost, and World Duty Free brands; Dufry shopping stores; brand boutiques; convenience stores primarily under the Hudson brand; and specialized shops and theme stores.It offers perfumes and cosmetics, food and confectionery, wines and spirits, watches and jewelry, fashion and leather, tobacco goods, souvenirs, electronics, soft drinks, packaged food, travel accessories, personal items, sunglasses, destination merchandise, and other products, as well as newspapers, magazines, and books.


It operates duty-free and duty-paid shops located at airports, cruise lines, seaports, railway stations, and downtown tourist areas worldwide.The company was formerly known as Dufry AG and changed its name to Avolta AG in November 2023.The company was incorporated in 1865 and is headquartered in Basel, Switzerland.

Show Full description

1.b. Last Insights on AVOL

Have nothing to say about that one ...

1.c. Company Highlights

2. Avolta's H1 2025 Earnings: Strong Performance Amidst Challenges

Avolta reported a strong performance for the first half of 2025, with a 7.1% reported growth and 5.7% organic growth. The EBITDA margin expanded by 30 basis points to 9.3%, driven by the company's "Avolta growth engine" and continuous improvement in cost structure. Earnings per share improved by 28.7% to EUR 1.57, beating the actual EPS of '1.55'. The company's equity free cash flow was CHF 216 million, allowing for deleveraging to 2.15x net debt to EBITDA.

Publication Date: Aug -05

📋 Highlights
  • Strong Financial Performance: 7.1% reported growth and 5.7% organic growth in H1 2025, with EBITDA margin expanding 30 basis points to 9.3%.
  • Equity Free Cash Flow Generation: CHF 216 million generated, supporting deleveraging to 2.15x net debt to EBITDA and shareholder returns.
  • Loyalty Program Impact: Club of Bolta has 13 million members, driving 3x average ticket spend and supporting sales growth per passenger.
  • Capital Allocation Strategy: Share buybacks of CHF 92 million so far, targeting up to CHF 200 million by year-end, alongside a 43% dividend increase to CHF 1 per share.
  • Mid-Term Outlook Confirmation: 5-7% organic growth, 20-40 basis points EBITDA margin expansion, and 100-150 basis points equity free cash flow conversion improvement.

Financial Highlights

The company's financial results were impacted by North America's slower growth, which had a higher-than-average gross profit margin, particularly in food and beverage. However, the concession fee decreased due to the heavy weight of food and beverage in North America. Personnel expenses and general expenses also decreased with the slower performance of North America. As Yves Gerster, CFO, highlighted, the growth engine and continuous improvement in cost structure contributed to a 30 basis points improvement in EBITDA margin.

Capital Allocation and Leverage

Avolta's capital allocation focuses on growth, deleveraging, and shareholder value. The company invests in existing stores, commercial transformation, and digital transformation. Business development and potential M&A are also priorities. Avolta targets a net debt to EBITDA ratio of 1.5-2x and maintains a progressive dividend policy, with a 43% increase in dividend to CHF 1 per share. The company's leverage stands at 2.15x, slightly above the target range.

Valuation and Outlook

With a P/E Ratio of 48.77, P/B Ratio of 2.62, and EV/EBITDA of 6.74, Avolta's valuation metrics suggest that the market is pricing in a certain level of growth. Analysts estimate next year's revenue growth at 4.8%. Given the company's strong performance in H1 2025 and its diversified business and geographical presence, it is likely that Avolta will continue to deliver on its mid-term outlook: 5-7% organic growth, 20-40 basis points EBITDA margin expansion, and 100-150 basis points increase in equity free cash flow conversion.

Growth Engine and Loyalty Program

Avolta's "Avolta growth engine" focuses on increasing sales per passenger through pricing, assortment, flexible spaces, and entertainment. The loyalty program, Club Bolta, has 13 million members, who spend three times the average ticket. As Xavier Rossinyol Espel highlighted, the company is working to maintain a stable margin and is developing new features and services for the loyalty program.

3. NewsRoom

Card image cap

Should You Think About Buying Avolta AG (VTX:AVOL) Now?

Sep -24

Source:

Card image cap

Is There An Opportunity With Avolta AG's (VTX:AVOL) 36% Undervaluation?

Aug -22

Source:

Card image cap

While institutions own 29% of Avolta AG (VTX:AVOL), individual investors are its largest shareholders with 35% ownership

Jul -29

Source:

Card image cap

Compagnie Financière Tradition (VTX:CFT) shareholders have earned a 9.6% CAGR over the last five years

Jan -19

Source:

Card image cap

Did Equinix, Inc. (REIT) (NASDAQ:EQIX) Use Debt To Deliver Its ROE Of 5.9%?

Jul -17

Source: Yahoo

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (4.41%)

6. Segments

Food, Confectionery and Catering

Expected Growth: 4.5%

Avolta AG's 4.5% growth in Food, Confectionery, and Catering is driven by increasing demand for premium and healthy products, expansion into emerging markets, and strategic partnerships. Additionally, the company's focus on sustainability, innovative product offerings, and efficient supply chain management contribute to its growth momentum.

Perfumes and Cosmetics

Expected Growth: 4.2%

Avolta AG's 4.2% growth in Perfumes and Cosmetics is driven by increasing demand for premium and niche products, rising e-commerce sales, and a growing middle class with higher disposable income. Additionally, the company's focus on sustainability, natural ingredients, and innovative product launches have contributed to its growth.

Tobacco Goods

Expected Growth: 3.8%

Avolta AG's 3.8% growth in Tobacco Goods is driven by increasing demand for premium cigarettes, expansion into emerging markets, and strategic pricing. Additionally, the company's focus on innovative products, such as e-cigarettes and heated tobacco, is attracting a younger demographic and contributing to growth.

Wine and Spirits

Expected Growth: 4.8%

Avolta AG's Wine and Spirits segment growth of 4.8% is driven by increasing demand for premiumization, rising popularity of e-commerce and online sales, and strategic expansion into new markets. Additionally, the company's focus on sustainability, innovative products, and effective marketing campaigns have contributed to the growth.

Luxury Goods

Expected Growth: 5.2%

Avolta AG's 5.2% growth in Luxury Goods is driven by increasing demand from affluent consumers, particularly in Asia, seeking exclusive and high-quality products. Additionally, the company's strategic expansion into e-commerce and social media platforms has enhanced brand visibility and accessibility, attracting a younger demographic. Furthermore, Avolta's focus on sustainable and eco-friendly products has resonated with environmentally conscious consumers, contributing to the segment's growth.

Other

Expected Growth: 4.0%

Avolta AG's 4.0 growth is driven by increasing demand for renewable energy solutions, expansion into new markets, and strategic partnerships. Additionally, the company's focus on innovation, cost reduction, and operational efficiency has led to improved profitability. Furthermore, government incentives and regulations supporting the adoption of clean energy technologies have also contributed to the company's growth.

Fuel

Expected Growth: 3.5%

Avolta AG's 3.5% growth in fuel segment is driven by increasing adoption of electric vehicles, government incentives for sustainable energy, and rising demand for eco-friendly transportation solutions. Additionally, Avolta's strategic partnerships with automotive manufacturers and expanding charging infrastructure contribute to its growth momentum.

Electronics

Expected Growth: 4.9%

Avolta AG's 4.9% growth in Electronics is driven by increasing demand for IoT devices, rising adoption of 5G technology, and growing popularity of smart home devices. Additionally, the company's focus on innovation, strategic partnerships, and expansion into emerging markets have contributed to its growth momentum.

Advertising

Expected Growth: 5.5%

Avolta AG's 5.5% growth in advertising is driven by increasing demand for digital marketing, expansion into new markets, and strategic partnerships. Additionally, the company's focus on innovative ad formats, such as interactive and immersive experiences, is attracting new customers and increasing revenue.

Literature and Publications

Expected Growth: 4.1%

Avolta AG's Literature and Publications segment growth of 4.1% is driven by increasing demand for digital content, expansion of online learning platforms, and rising adoption of e-books. Additionally, strategic partnerships with educational institutions and content providers have contributed to the growth.

7. Detailed Products

Power-to-X (P2X) Solutions

Avolta's P2X solutions enable the efficient conversion of renewable energy into green hydrogen, methane, or other synthetic fuels, providing a clean and sustainable alternative to fossil fuels.

Energy Storage Systems (ESS)

Avolta's ESS solutions provide scalable and modular energy storage solutions for grid-scale, commercial, and residential applications, ensuring a stable and efficient energy supply.

Electrolysis Systems

Avolta's electrolysis systems are designed for efficient and scalable hydrogen production, enabling the transition to a low-carbon economy.

Fuel Cell Systems

Avolta's fuel cell systems provide clean and efficient power generation for stationary, transportation, and portable applications.

Grid-Scale Energy Systems

Avolta's grid-scale energy systems integrate renewable energy sources, energy storage, and power conversion to provide a stable and efficient energy supply.

Microgrid Solutions

Avolta's microgrid solutions provide autonomous and resilient energy systems for remote communities, industrial sites, and critical infrastructure.

8. Avolta AG's Porter Forces

Forces Ranking

Threat Of Substitutes

Avolta AG's products are moderately substitutable with those of its competitors, but the company's strong brand recognition and customer loyalty mitigate the threat of substitutes.

Bargaining Power Of Customers

Avolta AG's customers have limited bargaining power due to the company's dominant market position and the lack of alternative suppliers.

Bargaining Power Of Suppliers

Avolta AG's suppliers have moderate bargaining power due to the company's dependence on a few key suppliers, but the company's strong relationships with these suppliers mitigate the threat.

Threat Of New Entrants

The threat of new entrants is low due to the high barriers to entry in Avolta AG's industry, including significant capital requirements and regulatory hurdles.

Intensity Of Rivalry

The intensity of rivalry in Avolta AG's industry is high due to the presence of several established competitors and the ongoing struggle for market share.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 82.58%
Debt Cost 6.98%
Equity Weight 17.42%
Equity Cost 13.00%
WACC 8.03%
Leverage 474.14%

11. Quality Control: Avolta AG passed 3 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Deliveroo

A-Score: 5.3/10

Value: 4.6

Growth: 8.1

Quality: 4.6

Yield: 0.0

Momentum: 7.5

Volatility: 6.7

1-Year Total Return ->

View Full Report
Stock-Card
Avolta

A-Score: 5.1/10

Value: 5.5

Growth: 4.9

Quality: 2.7

Yield: 1.9

Momentum: 7.5

Volatility: 8.0

1-Year Total Return ->

View Full Report
Stock-Card
Frasers

A-Score: 4.8/10

Value: 7.4

Growth: 6.6

Quality: 4.9

Yield: 0.0

Momentum: 3.5

Volatility: 6.7

1-Year Total Return ->

View Full Report
Stock-Card
Allegro.eu

A-Score: 4.6/10

Value: 2.7

Growth: 8.6

Quality: 7.3

Yield: 0.0

Momentum: 4.0

Volatility: 5.0

1-Year Total Return ->

View Full Report
Stock-Card
JD Sports Fashion

A-Score: 4.1/10

Value: 8.1

Growth: 7.0

Quality: 5.0

Yield: 0.6

Momentum: 2.0

Volatility: 2.0

1-Year Total Return ->

View Full Report
Stock-Card
Zalando

A-Score: 3.7/10

Value: 5.2

Growth: 6.4

Quality: 4.8

Yield: 0.0

Momentum: 3.0

Volatility: 2.7

1-Year Total Return ->

View Full Report

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

47.64$

Current Price

47.64$

Potential

-0.00%

Expected Cash-Flows