Avolta reports improved growth and easing geopolitical pressures

Travel retailer Avolta reported an acceleration in organic growth during the third quarter, reaching 4.6 percent compared to 2.9 percent in the second quarter. For the first nine months of the year, the company achieved core revenue of 10.4 billion Swiss francs, representing 4.1 percent organic growth. The company noted that the impact of the Iran-war on growth has diminished, stating that without the conflict, growth would have reached 5.2 percent.

Profitability also showed signs of recovery as margin pressure eased. The adjusted EBITDA margin stood at 11.6 percent in the third quarter, narrowing the gap to the previous year to 40 basis points, down from a 60-basis-point deficit in the second quarter.

Despite these improvements, Avolta continues to face operational challenges at new locations, specifically Shanghai-Pudong and New York JFK airports. At Shanghai-Pudong, the company is still awaiting a tobacco sales license, noting that as the first international company to receive a duty-free license in China, no established procedure for such permits currently exists. At JFK, delays in construction and the establishment of new business processes have impacted full operations.