Avolta’s Overhauled Retail and F&B Offerings at Barcelona Airport in Spain
Latin America faced challenges in Avolta’s 2024 annual results, with a 4.7% decline in like-for-like sales, contrasting sharply with growth in other regions. Europe led the pack, with a 9.4% increase, while the Americas struggled in the first quarter.
EMEA, encompassing Europe, the Middle East, and Africa, shone with a robust 9.4% growth to Swiss francs 6.93 billion ($7.28 billion). However, economic uncertainties in the Americas, exacerbated by tariff fluctuations under the Trump administration, could pose obstacles, especially in Mexico where Avolta holds a significant market presence.
Although North America had been a stronghold for Avolta post-pandemic, 2024 saw a moderate 5.4% sales increase. The core EMEA region, where Avolta boasts strong positions in key airports like those in the UK and Spain, now drives growth. Avolta’s foray into Saudi Arabia and potential peace deals between Russia and Ukraine could revitalize weaker segments like the Nordics.
Final quarter performance highlighted stable growth in EMEA, a slight dip in North America, and a concerning 9.6% contraction in Latin America. Economic challenges in Argentina, coupled with currency issues in Brazil, impacted outbound travel and spending in the region.
Overall, Avolta’s full-year revenue surged by 6.4% to Swiss francs 13.5 billion ($15.3 billion), with a significant rise in profitability. Core Ebitda increased by 12%, while net debt hit a decade-low of $3 billion, showcasing financial stability.
Investors exhibited a lukewarm response to Avolta’s 2024 results, with shares closing marginally lower. CEO Xavier Rossinyol expressed optimism despite challenges in the Americas, citing compensatory growth in other regions. The company remains prepared to address any uncertainties by focusing on cost efficiencies and margin maintenance.
While the US remains a lucrative market for Avolta, declining international traffic raises concerns. Canadians, deterred by changing tariffs and border issues, are curtailing their American travel plans. Avolta’s strategic wins at JFK Airport aim to bolster its US market share, although data suggests a decline in international travel to key American destinations.
Despite these challenges, Rossinyol maintains a growth target of 5-7% for the year, with a focus on margin enhancement. The introduction of Club Avolta loyalty program, now operational in all company locations, aims to personalize customer experiences and drive revenue.
In conclusion, Avolta’s strategic vision, supported by innovative initiatives like Avolta GPT and Club Avolta, positions the company for sustained growth amidst global uncertainties. By leveraging data-driven strategies and embracing emerging trends in travel retail and F&B, Avolta navigates a dynamic market to meet long-term objectives and enhance customer engagement.