Business · Companies · 6 hrs ago
Avolta’s quarterly growth accelerates as Shanghai and JFK delays continue
Avolta’s core sales rose 5.4% to 4 billion francs in the third quarter, as the travel retailer’s business picked up.
Organic growth accelerated to 4.6% from 2.9% in the second quarter, beating analysts’ expectations.
The Iran war’s drag on growth eased from 1.7 percentage points in the second quarter to 0.6 points in the third, as air travel in the Middle East recovered.
Avolta still lacks a tobacco-sales licence at Shanghai-Pudong airport, and it does not know when one will be available.
At New York’s JFK airport, the full opening of new shops is now expected in 2028 rather than by the end of 2027.
North America sales growth improved despite fewer passengers, with spending per passenger rising.
Avolta kept its medium-term growth and margin targets, while reporting preliminary organic growth of about 4% for October; analysts remain cautious about whether it will meet its goals in 2026.
Avolta’s core revenue rose 5.4% to 4.0 billion Swiss francs in the third quarter, while organic growth accelerated to 4.6% from 2.9% in the second quarter.
The impact of the Iran war on organic growth eased to 0.6 percentage points in the third quarter from 1.7 points in the second.
The travel retailer is still waiting for a tobacco sales licence at Shanghai-Pudong airport, and the full opening of its new shops at New York JFK has been delayed until 2028.
Avolta reported preliminary organic growth of around 4% for October and confirmed its medium-term targets.
Analysts welcomed the results but several expect Avolta to fall short of its annual growth and margin improvement targets in 2026.
- Who
- Avolta, the travel retailer, reported the results.
- What
- Third-quarter core revenue rose 5.4% to 4.0 billion Swiss francs, and organic growth accelerated to 4.6%.
- When
- The results were announced on Thursday; the article was published on October 29, 2026.
- Where
- The results concern Avolta’s business; the article highlights delays at Shanghai-Pudong airport and New York JFK.
- Why
- Organic growth accelerated as the impact of the Iran war eased and the Middle East’s air traffic recovered.
Avolta
Analysts
2026 outlook
Avolta
Avolta maintained its medium-term targets of 5% to 7% average annual organic growth and yearly margin improvement of 20 to 40 basis points.
Analysts
Several analysts expect Avolta to fall short of its targeted annual growth and margin improvements in 2026.
The Iran war reduced organic growth by 1.7 percentage points, and organic growth was 2.9%.
Core revenue rose 5.4% to 4.0 billion Swiss francs, while organic growth reached 4.6%.
Avolta reported preliminary organic growth of around 4%.
Avolta’s shares closed up 5.1% after the results were received positively on the stock market.
- Third-quarter core revenue
- 4.0 billion Swiss francs, up 5.4%
- Third-quarter organic growth
- 4.6%, compared with 2.9% in the second quarter
- Core EBITDA margin
- 11.6%, 40 basis points below the previous year
- Shanghai-Pudong
- Avolta is still waiting for a tobacco sales licence
- New York JFK
- Full opening of new shops is expected in 2028, rather than by the end of 2027
- October organic growth
- Around 4%, preliminary figure
What people are saying
The effects of the Iran war eased significantly in the third quarter.
There is simply no procedure for such a licence in China yet.