Swiss duty-free retailer Dufry has raised its 2021 savings target and free cash flow guidance twice this year, primarily due to the recovery of travel from a pandemic-related slump in the Western Hemisphere.
The retailer, which operates more than 2,300 stores at airports, cruise ships, ports and other tourist destinations, has been hit hard by a travel ban imposed to combat the coronavirus pandemic over the past year and a half. After receiving the virus, it is showing signs of recovery. ..
The recovery of the group was specially driven by the main sector, the Americas. The Americas generated CHF 499 million ($ 543.16 million) of its sales of CHF 1.3 billion in the third quarter.
“We have seen continuous progress in the United States and Central America, including the Caribbean Islands,” CEO Julian Diaz said in a statement.
The group currently expects to achieve up to CHF 1.87 billion ($ 2.04 billion) in labor and other cost savings compared to pre-pandemic levels. This is an increase from the projected CHF 1.2 billion in August and exceeds the recorded CHF 1.3 billion. In 2020.
The Basel-based company has also raised its 2021 free cash flow target, with sales of CHF 13 million per month, with sales 40% below pre-pandemic levels in 2019, or a cash burn of CHF 13 million. We anticipate a cash inflow of francs. Sales are 55% below 2019 levels. Previously, sales were projected to fall 40% from 2019, and even if the cashburn of CHF 30 million fell 55% below 2019 levels, it would still be a break-even point.
By Aida Pelaez-Fernandez