Seizing the Improving Recovery Momentum

We are currently seeing an improving momentum of the business environment with many countries lifting or at least easing restrictions related to the pandemic. Obviously, we will continue closely monitoring the evolution in the Ukraine with the most important focus for us being the health and safety of our employees and their families in the Ukraine and Russia. Nevertheless, the travel industry is already noting positive increases in bookings for the upcoming spring and summer season, and nearly all players of travel related businesses are hiring new employees. This is the strongest sign of recovery we have seen in the past two years – let’s seize the opportunity! As a company we are in a strong and well organized position, allowing us to further accelerate sales and benefit from these encouraging trends.

2021 – a year of positive operational developments

Throughout 2021, we have already seen positive developments in terms of our performance. Our customers have started to come back to our stores and in many cases have spent more than before the crisis. Our turnover has increased by 52.9% reaching CHF 3,915.4 million and organic growth has accelerated by 53.2% as compared to 2020.

From May through to October we have generated positive cash flows which peaked in the third quarter, reaching almost the same high levels as in third quarter 2019 – our record year – when sales where more than twice as high. This confirms our inherent capability to generate resilient positive cash flows and shows that the efficiency measures and organizational initiatives implemented in the past two years work well. At the end of the 2021 our equity free cash flow (ECFC) came in at CHF -33.4 million – a strong improvement as compared to CHF -1,027.3 million in 2020.

I also want to highlight the very solid liquidity position of CHF 2,243.9 million we reached in 2021. This is the combined result of the comprehensive cost saving, efficiency and reorganizational measures as well as the successful financing transactions executed in 2020 and at the beginning of 2021.

Through attractive refurbishments, contract extensions and new concession wins, we have further increased the attractiveness of our shops and widened our footprint to attract new customers in the future. Some of the most important ones, to name just a few, are the new concessions at Teesside Int. Airport in the UK for twelve years, the ten-year contract at Martinique Aimé Césaire Int. as well as the ten years contract at Cayenne Felix Eboué Int. Airport in French Guiana. We were awarded important extensions at Santiago Int. Airport in the Dominican Republic for ten years, at Cardiff Airport in the UK for twelve years and for three airports in Cambodia (Phnom Penh, Siem Reap and Sihanoukville) for over five years. Amongst the most important refurbishments we have rebuilt our shops at Milano Linate Airport in Italy, Pulkovo Airport in St. Petersburg in Russia, the Dufry Shopping Megastore at Rio Galeão Airport in Rio de Janeiro in Brazil, as well as also implementing a complete redesign of the Brookstone shop concept in the US.

With all these achievements and the solid financial structure, Dufry is in a very good position to seize the opportunities of the recovery and to return to a resilient growth mode.

Extended ESG engagement

In 2021, we have also considerably extended our engagement within environment, social and governance (ESG) matters. We have accomplished important steps in all our four focus areas – Customer Focus, Protecting Environment, Employee Experience and Trusted Partner – which proves that we look at ESG from a holistic perspective. In this context, we have launched the plastic bag substitution in 15 countries and we have implemented the sustainable product identification initiative in 171 shops across 128 airports. To help protect the environment we have also defined emission reduction targets, which in different stages will contribute to reduce our CO₂ footprint.

We have also made important progress in our employee experience through our strong engagement to foster Diversity & Inclusion. Shortly after setting up of the respective internal D&I steering committee we were able to conduct the first D&I survey. Having approached 70% of our employees across all regions and cultures the results have provided us with important insights, which will support us in defining a relevant D&I strategy and in making Dufry a better place to work. A considerable achievement, which should also be mentioned, is the successful Equal Salary Certification confirmed in Switzerland. You will discover more about our ESG achievements in this edition of Dufry World.

Xavier Rossinyol appointed as new CEO

As you know, we have recently informed you that Xavier Rossinyol will be my successor as of June 1, 2022. He has been a colleague and worked with Dufry for over ten years before. Besides his wide experience and professional skills, I appreciate Xavier’s qualities as a good hearted person. I wish him lots of success and kindly ask you to support him as much as you have supported me over all these years. In the coming weeks Xavier and I will work together to secure a smooth transition.

After 18 years of leading this team of incredibly strong and dedicated professionals, I am very proud and thankful to have had the opportunity to be part of this company and share this adventure with you. For me, Dufry has always represented a fascinating family consisting of a large variety of cultures and ethnicities.

Thank you for all your support

I would like to thank all of you for the immense support and dedication you have given to me and the company over all these years. I have enjoyed working with all of you and building on our values of excellence, personal commitment, life-long learning and team spirit.

I wish the Dufry family a prosperous future and for you each of you personally, all the best for a rewarding career and happiness in your private life.

Kind regards,