Duty-free retailer Avolta posts annual turnover below expectations

March 11 (Reuters) - Swiss duty-free retailer Avolta AVOL.S reported slightly lower-than-expected annual turnover on Wednesday, amid a challenging environment.

The company, which runs shops at airports, on cruise liners, in seaports and other tourist locations worldwide, posted a core turnover of 13.72 billion Swiss francs ($17.63 billion) for 2025, up from 13.47 billion a year earlier, but missing analysts' forecast of 13.81 billion Swiss francs in a poll by Vara Research.

"Even within a complex external environment, including the recent conflict affecting parts of the Middle East region, our scale, diversification and clear strategic direction give us confidence," Chief Executive Officer Xavier Rossinyol said in a statement.

The widening Middle East war has sent global markets into a tailspin and significantly dampened investors' economic optimism on fears the conflict will create an oil price shock, raising inflation and delaying interest rate cuts.

The company confirmed its medium-term targets.

It said it will propose a dividend of 1.15 Swiss francs per share for 2025, up from 1.00 Swiss francs a year earlier.

($1 = 0.7771 Swiss francs)