Avolta posts higher quarterly sales growth, shrugs off North America slowdown
May 15 (Reuters) - Swiss travel retailer Avolta (AVOL.S), opens new tab posted a 5.3% organic increase in first-quarter turnover on Thursday, driven by its diversified business structure, despite headwinds in North America from lower traffic volumes earlier in the year.
The Basel-based company also confirmed its full-year outlook and mid-term targets.
The company, which runs shops at airports, on cruise liners, in seaports, and other tourist locations worldwide, posted a core turnover of 3.05 billion Swiss francs ($3.63 billion) for the reported quarter, up from 2.78 billion francs a year earlier.
Avolta's stock has climbed 23% since the start of the year, fuelled by investor confidence in its strategic diversification across various channels and regions, particularly amid uncertainty in the U.S. travel market.
Amid Avolta's growth momentum, U.S. consumer confidence recorded its sharpest drop in nearly five years this April, marking the sixth straight monthly decline.
This downward trend has been compounded by persistently high inflation and mounting concerns over the economic impact of potential tariffs, which are clouding the broader economic outlook.
"While North America faced headwinds due to lower traffic volumes in Q1 2025, performance in other regions more than compensated," Chief Executive Officer Xavier Rossinyol said in a statement.
"We are actively monitoring the geopolitical evolution, mitigating against potential impacts as needed with a continued focus on growth and profitability," Rossinyol added.
In North America, core turnover for the quarter reached 991 million Swiss francs, up from 974 million francs in the same period last year.
The region remains Avolta's second-largest market, accounting for 32% of the group's total turnover in 2024.
($1 = 0.8394 Swiss francs)
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Press and Journal
23 minutes ago
- Press and Journal
Founder retires as Moray engineering firm with 125 staff acquired
One of Moray's most prominent business figures has retired following the sale of his company in a major acquisition deal. Alan James, 71, has stepped down from AJ Engineering (AJE), the Forres-based firm he founded in 1999. The business, which employs 125 people across sites in Forres, Fort William and Carlisle, has been acquired by global environmental and engineering leader RSK Group. The deal includes AJE's sister company NEWCo, based in Fort William. The acquisition, for an undisclosed sum, brings AJE into a group of over 200 companies worldwide. Graham Alexander, who has worked with AJE for 11 years, will take over as group managing director. Neil Worsdall will remain general manager of NEWCo. Mr James said the deal secures the future of the companies and positions them well for further growth. He will remain for a short handover before fully retiring. He expressed confidence in the next phase of the business. 'By joining a larger organisation, AJE and NEWCo will benefit from increased new business opportunities, a broad range of knowledge sharing, and working in partnership and collaboration with the other RSK Group businesses on a wide range of varied and inclusive projects,' he said. 'This truly marks the start of exciting times for all at AJ's and NEWCo.' Mr James began his career in 1971 as an apprentice fabricator welder at William Reid Engineering in Forres. He progressed into project management and later earned an MSc from Aberdeen University. It was when he was made redundant at 45 following the closure of William Reid in 1999, that he took the leap to set up his own firm. He launched AJ Engineering with just one employee in a rented workshop at Greshop Industrial Estate in Forres. 'Starting out I remember working eight straight weeks – all hours, Saturdays and Sundays too,' he recalls. 'It's been a lot of hard work building up the company, but very satisfying.' Over the past 26 years, AJE has taken on major projects across the UK and beyond. Highlights include infrastructure support at SaxaVord Spaceport in Shetland and ongoing work at Rothera Research Station in Antarctica. Mr James says he has always placed a strong emphasis on training and development: 'I started as an apprentice myself,' he said. 'Investing in young people has always been important to me. 'The intention is that for our staff here in Forres, Fort William and Carlisle, it's very much business as usual. 'I am well over retirement age, and making sure that the company that I have built, with lots of support along the way, continues to grow from strength to strength has been very important to me.' Outside his role at AJE, Mr James has been active in the Moray community. He is Depute Lieutenant of Moray and a director of Forres Events Limited. He helped organise the Piping at Forres festival and last year's Grant Park 100 celebration. RSK Group said acquiring AJE and NEWCo will strengthen its UK engineering base, particularly in water, energy and infrastructure.
NBC News
an hour ago
- NBC News
Palantir CEO Karp says AI is dangerous and 'either we win or China will win'
Palantir CEO Alex Karp said the artificial intelligence arms race between the U.S. and China will culminate in one country coming out on top. 'My general bias on AI is it is dangerous,' Karp told CNBC's ' Squawk on the Street ' on Thursday. 'There are positive and negative consequences, and either we win or China will win.' Karp has been a vocal advocate for U.S. AI dominance. He told CNBC in January that the country needs to 'run harder, run faster' in an 'all-country effort' to develop more advanced AI models. In a recent letter to shareholders, he also touted Palantir's commitment to equipping and enhancing U.S. defense interests. The billionaire tech CEO said Thursday that the U.S. currently has a leg up in the AI race and Palantir is leading the way in making companies more secure and efficient with its tools. 'There is no economy in the world with this kind of corporate leadership which is willing to pivot, which understands technologies, which is willing to look at new things, but also has deep domain expertise,' he said. 'Our allies in the West, in Europe, are going to have to learn from us.' Shares of the Denver-based data analytics and AI software firm outperformed in 2024 and have continued their ascent in 2025 as investors bet on their software and work with key government contractors and agencies. The stock is up 74% this year, but investors have to shell out on a higher earnings multiple than its tech peers. 'You don't like the price, exit,' Karp said Thursday in response. Karp also asserted that the company is 'not surveilling Americans' in response to recent New York Times report that Palantir is helping the Trump administration gather data on Americans.
Reuters
an hour ago
- Reuters
ECB cuts inflation, growth projections
FRANKFURT, June 5 (Reuters) - The European Central Bank cut some of its growth and inflation projections on Thursday as the fallout from a global trade war is likely to prove a drag for the 20-nation euro zone. Inflation is now seen falling further below the ECB's 2% target next year as lower energy costs, a stronger euro and weak economic growth all weigh on prices. Price growth will then rebound in the following year and come back to target, the ECB predicted. A muted outlook for both economic growth and inflation is why the ECB cut interest rates again on Thursday, lowering the deposit rate by a combined 2 percentage points since last June. That may not be enough, however. Markets see between one and two more rate cuts this year as growth remains anaemic and there is no meaningful rebound on the horizon. The following are the ECB's projections for inflation and economic growth. Previous projections from March are in brackets. GDP Growth: 0.9 (0.9%) 1.1 (1.2%) 1.3% (1.3%) Inflation: 2.0 (2.3%) 1.6 (1.9%) 2.0% (2.0%)
