Avolta's first-half turnover rises 5.7% on strong travel spending

By Anastasiia Kozlova

July 31 (Reuters) - Swiss travel and F&B retailer Avolta AVOL.S on Thursday reported a 5.7% organic rise in first-half turnover, driven by higher passenger traffic and increased spending per traveller despite currency headwinds.

The company, which runs shops at airports, seaports, on cruise liners and other tourist locations worldwide, posted a core turnover of 6.61 billion Swiss francs ($8.13 billion), up from 6.34 billion francs a year earlier.

The Basel-based company also confirmed its full-year outlook and mid-term targets, adding that at current exchange rates, 2025 currency translation is expected to have a negative impact of around 3%.

"We're seeing FX-related headwinds, along with minor impacts from the Middle East crisis, and over the past two years, we've also felt the absence of Chinese and Russian travellers due to geopolitical tensions," Chief Financial Officer Yves Gerster told Reuters. However, the company would continue to perform in line with its guidance despite these short-term interruptions, he added.

"FX headwinds were about 3% in the first half of 2025, and we expect them to remain at similar levels in the second half," Gerster said.

ZKB analysts flagged FX as a continued drag on revenue, with the euro and U.S. dollar accounting for a combined 65% of Avolta's revenue base.

In its second-biggest market by sales, North America, where consumer sentiment has been dampened by economic uncertainty and tariff concerns, Avolta reported a stable performance.

U.S. consumer confidence declined in June amid a cutback in big-ticket purchases, although vacation plans, particularly for international travel, remained largely unaffected.

While overall passenger numbers have declined, "consumer demand remains strong, with those traveling continuing to spend," Gerster said, adding that Avolta's optimism is supported by a strong start to the summer travel, particularly in July.

Spending trends remain robust despite economic uncertainties, with signs that the slowdown in North America may be stabilising, analysts at Vontobel said, adding that if current summer momentum holds, there could be upside to earnings consensus.

($1 = 0.8131 Swiss francs)