Avolta (AVOL) CMD 2025 summary

Strategic progress and pillars

• Destination 2027 strategy is guided by travel experience revolution, geographical diversification, operational improvement, and sustainability/people focus, powered by digital and data capabilities.

• Merged F&B and retail, advanced digital transformation, launched Club Avolta loyalty program, and expanded into new countries and concessions.

• Emphasis on personalized retail and F&B concepts, data-driven customer engagement, and a dedicated APAC team for regional expansion.

• Active portfolio management, zero-based budgeting, and integration teams deliver synergies and operational efficiencies.

• Strong focus on sustainability, people development, and fostering a culture of continuous improvement.

Growth drivers and business model

• Growth is driven by increasing passenger numbers, higher spend per passenger, and new space from renewals, tenders, direct negotiations, and M&A.

• Flexible store formats, digitalization, data analytics, and hybrid F&B-retail concepts, with 70 hybrid locations and rising share in business development.

• Club Avolta loyalty program has 11 million members globally, with members spending three times more than non-members and generating 5.5%-6% of total sales.

• Operates the largest global network in travel retail and F&B, with exposure to 2.5 billion passengers across 70 countries and 5,100+ outlets.

• Data-driven assortment, dynamic pricing, and hybrid concepts enhance differentiation and customer engagement.

Financial performance and guidance

• Achieved CHF 13.5 billion turnover in 2024, with 10.5% CAGR since 2022, and EBITDA margin improving to 9.4% in 2024.

• EFCF conversion reached 33.5% in 2024, ahead of previous targets, with a mid-term outlook for 5%-7% organic growth, 20-40 bps EBITDA margin expansion, and 100-150 bps EFCF conversion improvement per year.

• Leverage reduced from 4.8x in 2022 to 1.9x in 2024, with a target of 1.5-2x net debt/EBITDA and flexibility up to 2.5x for accretive opportunities.

• Dividend per share increased by 43% YoY to CHF 1.00 in 2024, with CHF 650 million returned to shareholders in 2023-2024 and a CHF 200 million buyback for 2025.

• Asset-light model and highly variable cost structure underpin resilient margins and sustainable cash conversion.