“Exceeding expectations”: Avolta reports strong first quarter 2025
Avolta has reported strong first quarter 2025 results, with CORE turnover growth of +8.2% CER, EBITDA margin of 6.4%, +37bps YoY.
According to the company, Avolta delivered a strong performance in the first quarter of 2025, “underscoring the strength of its diversified geographic and channel presence”. The company remains focused on disciplined execution and creating long-term shareholder value. Medium-term targets and capital allocation principles remain unchanged.
Xavier Rossinyol, CEO of Avolta, commented, “Avolta has made a strong start to 2025, driven by the resilience of our diversified global platform and the disciplined execution of our strategy. Two and a half years into our strategic roadmap, we have exceeded expectations on all key performance indicators including top line growth, profitability and cash generation – creating sustainable value for our shareholders.
“While North America faced headwinds due to lower traffic volumes in Q1 2025, performance in other regions more than compensated. We are actively monitoring the geopolitical evolution, mitigating against potential impacts as needed with a continued focus on growth and profitability. Our medium-term outlook and capital allocation policy remain firmly in place.
“We are proud of our Q1 2025 performance and extend our sincere thanks to the Avolta team members for their dedication and contribution. Your commitment enables us to continually raise the bar and shape the travel experience of tomorrow.”
Q1 2025 Highlights in brief:
Strong Financial Performance
- Reported turnover CHF3,105 million
- CORE turnover CHF3,050 million
- CORE turnover growth +8.2% YoY at constant exchange rate (CER)
- Organic growth +5.3% (+6.5% w/o leap year effect)
- CORE EBITDA CHF 196m, +16.3% YoY
- CORE EBITDA margin 6.4%, +37 bps YoY
- Equity Free Cash Flow (EFCF) CHF -104m, in line with seasonal patterns
Strong Financial Position
- Leverage (Net Debt / CORE EBITDA) 2.18x, down from 2.55x a year ago
- Financial net debt CHF2,820 million
- Share buy-back CHF49 million executed under the up to CHF200 million program
Outlook and Confidence in Medium-Term Targets
- April YTD CORE turnover growth +8.5% YoY CER
- Organic growth +5.7% (+6.6% w/o leap year effect)
Q1 2025 Key Financial Highlight
Avolta reported turnover totaled CHF3,105 million and CORE turnover CHF3,050 million, reflecting CER growth of +8.2% YoY and organic growth of +5.3% (+6.5% w/o leap year effect). April YTD results show continued momentum with CER growth of +8.5% YoY and an organic growth of +5.7% (+6.6% w/o leap year effect).
CORE EBITDA reached CHF196 million, a +16.3% increase YoY, with a CORE EBITDA margin of 6.4% (up 37bps YoY). EFCF was CHF-104 million, compared to CHF-80 million in Q1 2024, primarily due to the timing of Easter, as anticipated.
The company’s financial net debt stood at CHF2,820 million as at March 31, 2025 (down from CHF2,915 million as at March 31, 2024), representing a leverage ratio of 2.18x, a solid improvement from the 2.55x as at end Q1 2024. Quarter-end liquidity totaled CHF2,017 million.
Q1 2025 Key Operational Highlights
According to Avolta, its key strategic growth projects remain on track. As the company continues to reinforce its strong foundations through a range of core initiatives, the following operational highlights in Q1 2025 stand out:
- Business development delivered significant progress across all of Avolta’s regions. Notable milestones include the launch of Presentedby at Zayed International Airport in Abu Dhabi – a first-of-its-kind travel retail concept blending digital innovation with physical retail, featuring sneakers and pre-loved luxury items.
- In Latin America, Avolta achieved a significant milestone with the opening of its first food & beverage (F&B) location in the region, at Brazil’s São Paulo/Congonhas Airport.
- Building on the contract awards at JFK in North America in late 2024, Avolta secured a 15-year F&B contract in Terminal 4 and extended its F&B contract in Terminal 5.
- In Asia Pacific, further progress was made with the award of a multi-store retail and F&B contract at Shanghai Pudong International Airport in China, set to open in the first half of 2025.
- Innovation continues to be a key driver of Avolta’s growth. Club Avolta, the company’s global loyalty program, added over one million new members in Q1 2025, building on the base of more than 10 million at the end of 2024. The program now spans all channels and is active in over 5,100 outlets worldwide.
Medium-Term Outlook
Aolta reaffirms its organic growth target of 5%-7% p.a. and remains committed to delivering +20-40bps of CORE EBITDA margin improvement and +100-150bps EFCF conversion annually. At current exchange rates, currency translation impact for 2025 is expected to be in the range of 0% to -1%.
