Moodie Davitt snapshot: Hudson Group Q1 results – Turnover up +9.2% to US$426.8 million – Net sales rose +8.9% to US$415 million – Organic sales increased +9.4% – Like-for-like sales up +5.5% (+4.5% in constant currency) – Gross profit rose +10.2% to US$268.0 million Source: The Moodie Davitt Report |
USA. Dufry subsidiary Hudson Group posted a +9.2% year-on-year increase in turnover in the first quarter, to US$426.8 million.
Net sales were up +8.9% to US$415 million, while organic sales increased +9.4%. Like-for-like sales were up +5.5% (+4.5% in constant currency) despite the high comparison base of +6.1% (+5.3% in constant currency) in the year-ago period. The result stemmed from an increase in average ticket size and the number of overall transactions.
Gross profit rose +10.2% to US$268.0 million, Hudson said.
Adjusted EBITDA was US$37 million, up +55.3%, or +20.7% assuming the reduced franchise fee rates the company currently pays Dufry had been in effect in the first quarter of 2017.
Hudson revealed its results following an earlier announcement from parent company Dufry, which posted a turnover increase of +6.6% driven by +7.1% organic growth.
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“Our impressive first quarter organic sales growth reinforces the attractive and resilient nature of the travel retail industry as well as the multiple levers we have to expand our concession portfolio,” said Hudson Group President and CEO Joe DiDomizio.
“We made significant progress in executing our strategic initiatives, highlighted by the ongoing development of our grab & go offerings as well as capturing additional white space opportunities through key wins at Phoenix and Seattle airports.
“As we look ahead, we are confident our performance year-to-date, combined with the continued execution of our strategic priorities, will position Hudson Group to deliver continued growth.”
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