Switzerland's Avolta Q3 revenue rises, maintains medium-term outlook
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: ID:nEQ6b0kTva
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.)