Avolta’s
Investment Case
Structural global travel growth with resilient, concession-based exposure.
Mid-term global passenger traffic projected CAGR of +3.5% – +4% across Avolta’s footprint, with growth across all major regions. Projected long-term growth in the expanding and resilient USD 86 billion travel retail and USD 28 billion travel F&B concession markets.
Destination 2027: a clear value-creation roadmap focused on growth, margins and cash.
Mid-term turnover growth of +5% – +7% CAGR driven by underlying growth in global travel and Avolta’s ability to capture increasing spend-per-passenger. Ongoing efficiency improvements driving EBITDA margin increases of +20bps – +40bps per annum, reflecting operating leverage, procurement efficiencies and a highly flexible cost structure. Annual EFCF conversion +100bps – +150bps underpinned by EBITDA margin expansion and continued focus on disciplined capital allocation and an efficient capital structure. Avolta benefits from a long-term track-record of highly flexible cost structure and low capital intensity, supporting strong cash generation across cycles.
Diversification across geographies, formats and concepts underpins resilience.
Proven resilience of travel retail and F&B is further reinforced by Avolta’s diversified presence across geographies, channels, formats, and concepts, reducing dependency on any single market or channel. Offering a broad and differentiated portfolio of travel retail, F&B and hybrid concepts, Avolta is uniquely positioned to maximize the commercial potential of concession partners’ spaces. Strong stakeholder relations with concession and brand partners as well as debt and equity investors.
Disciplined capital allocation supporting shareholder returns and long-term sustainability.
Besides investing in growth, both organic and through selective bolt-on acquisitions, the capital allocation policy aligns continued balance sheet deleverage with attractive shareholder returns. The group targets returning one-third of EFCF to shareholders by way of dividend, with the intention of returning any further medium-term excess cash by way of share buybacks. Target leverage of 1.5 – 2.0x net debt / CORE EBITDA with near-term flexibility of up to 2.5x for relevant business development and / or bolt-on M&A opportunities while maintaining a strong rating profile. Avolta’s strong local presence supports concession partners and communities through local job creation, local product sourcing and donations.