(Reuters) - Duty-free retailer Dufry lifted its full-year profitability target after posting forecast-beating results for the first half thanks to a post-pandemic global travel boom and added business from Italy's Autogrill service stations.
The retailer, which operates more than 2,300 shops at airports, on cruise liners and in seaports, said half-year turnover almost doubled to 5.72 billion Swiss francs ($6.54 billion).
Adjusted for the addition of the Autogrill business, which was consolidated in February, turnover increased 31.5%, boosted by holiday travels in Europe and domestic trips in the U.S.
CEO Xavier Rossinyol said the integration of Autogrill was advancing rapidly.
"Behind the scenes we are working on even bigger opportunities, making our stores even more fun, more vibrant, and smarter, adding live events and gamification elements in our customer experience," Rossinyol said in a statement.
Turnover in the Asia-Pacific region grew 272% from a very low base, dominated by domestic travel in China and intra-regional travel.
Dufry - which has launched new sales concepts that focus on "mind, body and soul" and on premium perfumes, and which also focuses on selling organic and freshly prepared food and drinks - said July turnover grew an estimated 17%.
Adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) reached 491.8 million francs in the January-June period, 12% above average analyst estimates according to Refinitiv data.
The EBITDA margin, which stood at 8.6% in the first half, is now forecast to be at around 8.3-8.4% for the full year after previous guidance for 8.0%.
Dufry shares rose as much as 5.2% in early trade, and were up 0.6% at 0745 GMT.
"There is more than enough to take the shares higher, with more potential earnings upgrades to follow in H2," said JPMorgan (NYSE:JPM) analysts in a note to clients.
($1 = 0.8743 Swiss francs)