Latin America – Avolta
Avolta builds on accelerating recovery in Latin America
We reflect on the travel retail to food & beverage powerhouse’s progress through Q1, with emphasis on the Latin American market. By Dermot Davitt.
Reporting on its first-quarter results recently, travel experience player Avolta said that “underlying demand for travel retail, convenience and F&B continued to be strong”, with core turnover up by +18% on a reported basis and reflecting +8.6% organic growth.
The picture was less rosy overall in Latin America, where Avolta is the dominant travel retailer – it posted year-on-year organic growth of +5% with turnover hitting CHF374.5 million (US$415.7 million) in the period.
With investment in airport infrastructure and robust passenger traffic growth, Mexico is among the strongest regional markets for the group
The less than favourable macroeconomic scenario in key market Argentina was one factor, though international passenger traffic recovery is gaining momentum region-wide, helping to generate solid sales growth in Brazil, Chile, Colombia and Uruguay. Mexico and Caribbean continued to experience strong leisure-driven demand.
Avolta grew its presence in the region in the first quarter, with the award of a new six-year duty-paid contract at Maceió-Zumbi dos Palmares International Airport in Brazil, as well as establishing an innovative collaboration agreement with Corporación America Airports, to elevate the airport retail experience in Uruguay.
Latin America represents 13% of the global business and has long been a mainstay of the travel retailer’s operations.
Speaking to us recently, Avolta President & CEO LATAM & Caribbean Enrique Urioste highlighted the focus on “flexible stores, local products, entertainment elements, hybrid concepts and digital innovations” under Avolta’s global Destination 2027 strategy.
Of projects in Latin America, Urioste added: “We will see the renewal of the duty-paid contract at Santiago del Chile Airport, as well as bringing new contract wins and extensions to life across the Caribbean including Puerto Rico, the Dominican Republic, Aruba and the Bahamas.”
Buoyant in Brazil: Avolta at São Paulo Guarulhos Airport
Enrique Urioste: Leading the growth drive in the Americas for the powerhouse player
In Brazil, Avolta recently extended its partnership with Aena and is constructing new stores in both duty free and duty paid in Recife, the duty-paid store in Maceió noted above, and expanding duty-paid operations at São Paolo Congonhas Airport.
Other openings include a duty-paid store at Vitória Airport in partnership with Zurich Airport, retro-fitting of the Porto Alegre Airport duty-paid store with Fraport, and a consolidated presence at Belo Horizonte Airport in partnership with CCR Group and Zurich Airport.
Of the potential to expand into regional food & beverage operations, Urioste told us: “We are actively seeking F&B opportunities in the region, and are convinced that this presents a great opportunity to showcase what Avolta can do here in Latin America. We know that synergies can be created and we are committed to maximising these.”
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The Moodie Davitt eZine
Issue 335 | 18 June 2024
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