Investing.com -- Swiss travel retailer Avolta AG (SIX:AVOL) said its third-quarter organic growth accelerated to 4.6% from 2.9% in the second quarter, and it confirmed its medium-term targets.
Avolta said growth picked up as acquisitions and other items turned positive after its investments began to contribute.
The targets are organic growth of 5%-7% a year, an annual improvement of 20-40 basis points in core EBITDA margin and an annual improvement of 100-150 basis points in EFCF conversion.
Preliminary October organic growth was around 4%, with strength across all regions, the company said.
For the first nine months, organic growth was 4.1%, or 5.2% excluding the Middle East. Core turnover was CHF 10.44 billion. IFRS turnover was CHF 10.66 billion and operating profit was CHF 882 million.
Core EBITDA for the nine months was CHF 1.04 billion, a margin of 10.0%, -20 basis points versus a year earlier, as Middle East disruption and the ramp-up of major new operations weighed on profit.
Excluding those factors, the margin would have risen 20 basis points to 10.4%. The third-quarter margin was 11.6%, and the gap with a year earlier narrowed to about 40 basis points from 60 basis points in the second quarter.
Third-quarter organic growth by region was 31.4% in Asia Pacific, 3.8% in Europe, Middle East and Africa, 2.3% in North America and 1.4% in Latin America.
EFCF for the nine months was CHF 501 million versus CHF 503 million a year earlier. Third-quarter EFCF was CHF 294 million versus CHF 287 million a year earlier, up 2.4%.
Net debt was CHF 2.73 billion at the end of September, or 2.0 times core EBITDA, reflecting the acquisitions of DFS Okinawa and Penha Duty Free and CHF 191 million of share buybacks, up from CHF 129 million in the first nine months of 2025.
Based on current exchange rates, Avolta expects currency translation to reduce 2026 reported turnover by about 2% versus 2025.
Chief Executive Xavier Rossinyol said the "profitability gap versus last year narrowed as new operations ramped up", and that organic growth "remained strong into October."
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