In the first half of 2014, Dufry’s turnover reached CHF 1,707.9 million and grew by 6.7% in constant FX rates and 2.4% when translated into Swiss Franc. Organic growth accelerated in the second quarter to 5.0% from 2.2% in the first quarter. EBITDA reached CHF 221.4 million for the half year 2014 and EBITDA margin was 13.0% in the period and 14.2% in the second quarter. Cash flow before working capital grew by 9.0% and reached CHF 212.2 million.
During July, Dufry successfully completed the equity increase, bond issuance and bank debt refinancing in relation to the Nuance acquisition, which was announced on 4 June,
Accelerating organic growth
Organic growth accelerated in the second quarter to 5.0% from 2.2% in the first quarter, where the new concessions played an important role as well as improvements in all businesses in Latin America, most notably in the Caribbean, Uruguay and Brazil, with signs of improvement. US & Canada and EMEA & Asia followed the positive trends showed in the Q1.
Key expansion projects completed
Dufry continued with its expansion projects and opened in the first semester 16,200 sqm of gross retail space. Specifically, Dufry opened 27 new shops in Brazil, of which 17 are located in the new Terminal 3 in Sao Paulo Guarulhos Airport. The shops were opened as scheduled in May 2014, ahead of the World Cup. In Asia, Dufry opened shops in Indonesia, South Korea and Sri Lanka during the first half of 2014. These new projects showcase not only Dufry´s execution capabilities but will also be important for the development of the company in the future.
Nuance financing put in place
On June 4th, Dufry announced the acquisition of the Nuance Group, a global travel retailer with turnover of CHF 2.1 billion and presence in 19 countries. To finance the acquisition of CHF 1.55 billion, Dufry executed a number of financing transactions in June and July. On 5 June, Dufry issued mandatory convertible notes of a total amount of CHF 275 million. On 7 July, Dufry issued five million new shares and raised approximately CHF 810 million in a successful capital increase, and on 11 July, successfully placed a new EUR 500 million bond with a 4.5% coupon DUFRY AG - Brunngässlein 12 - 4010 Basel - Switzerland 2 and 8 year maturity. Last but not least, the planned refinancing of the bank debt has been completed on 22 July.
All the planned financing instruments have been put in place and Dufry has implemented the long-term funding structure for the transaction.