Dufry expects major cash flow drops as travel retail stays weak
Swiss airport retailer Dufry on Monday announced its cash flow estimates in a still-uncertain world and is planning for potential full-year declines in turnover of 40%, 55% and 70%. It all depends on how fast coronavirus-linked travel restrictions are eased in the markets in which it operates.
Taking the 55% mid-case decline as its benchmark, the Basel-based company, which has operations in 65 countries, expects that during its reopening process in the second half of this year, its monthly cash flow will be around 10 million Swiss francs (£8.34 million).
The business is one of the big names in travel retail and has been hit hard by the pandemic. Not only were its stores closed for long periods in many regions, but with international travel at a virtual standstill, it has taken an extra hit even where stores have been open.
Travel retail had been one of the most buoyant retail sectors globally in recent years and has been key for many beauty and fashion accessory brands. But with international tourism historically low and unlikely to recover fully for some time, the channel's prospects are much more bleak.
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