15-05-2025
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)
