Dufry is well on track to continue its growth strategy. Recently, they stated their interest in the group World Duty Free; a take-over is estimated at about € 1bn and would considerably strengthen the company’s market presence. Yet there will some strong competition for this take-over as the market share is important and very few targets remain. Even without this complementary item, the company’s portfolio is well diversified and has a number of key locations in important travel destinations.
The recent Swiss Franc strengthening has impacted negatively the company (sales occur mainly abroad, reporting takes however place in CHF). This new situation is though now fully priced in. We like the growth story of the company and the appealing expansion prospects. The P/E ratio remains attractive at 12.6x 2016 earnings.