Xavier Rossinyol (1970) visits Barcelona as CEO of Dufry, a global giant in the duty free sector based in Switzerland. The Catalan manager, based in Basel, took office last year after a long career in the restaurant and airport trade sector. He worked in companies such as Areas, Gategroup and Dufry itself, to which he returned last year, assuming the most senior position within the group.
Since then, Rossinyol has faced the challenge of recovering sales to pre-pandemic levels, integrating the acquisition of Autogrill (another highway, port and airport catering giant) and expanding the business even further.
What situation has Dufry been in since his arrival?
The group is in full recovery after the pandemic crisis. Due to the brake on tourism, there were months in which activity fell by up to 90%. Now the scenario is completely different. Despite the unfavorable macroeconomic context, consumption at airports in Europe and America has recovered.
How have the results of 2022 been?
Net income stood at 6,878 million Swiss francs, about 7,000 million euros, compared to 4,000 million in 2021 and 2,500 million in 2020. In addition, the group returned to net profit, recording earnings of 120 million, after two years in losses.
And adding the acquisition of Autogrill?
The purchase and sale agreement that we reached with the Edizione group (Benetton family) was closed in the summer of last year and the results of both companies are consolidated this year. In 2022, this business had a turnover of around 4,100 million.
Is the number of jobs also recovering?
During the pandemic there were cuts but we are reintroducing staff. Globally we employ around 60,000 people and this year we are going to increase the figure by more than 10%.
How will the results evolve in 2023?
We are listed on the Swiss stock exchange and cannot make forecasts. However, all the analyzes suggest that we will surpass the 2019 revenue figure in 2024, when traffic in Asia has fully recovered.
What are the key markets for the group?
United States, the United Kingdom and Spain, where we feel deeply rooted. In fact, Dufry is the heir to Aldeasa –Almacenes y Depósitos Aduaneros SA–, the public company founded in 1974 to operate trade in ports and airports.
In 1997, it was privatized and began trading. It passed through the hands of the tobacco company Altadis, of the Italian Autogrill, which renamed it World Duty Free, until Dufry acquired the business in 2015.
Since then, we have had a much more global impact. We operate in more than 70 countries and we maintain Spain as a key market both at an operational and business level. We have been managing all the duty free stores in the country’s airports for 50 years in a row and we employ 1,800 people.
This year the macro-contest for the management of 86 duty-free stores in 27 Spanish airports is renewed. Are you concerned that Aena has decided to tender six geographical lots instead of three? It is the first time that giants from Asia and America show their interest in entering the country.
We are not worried. Throughout the last decades, we have always prevailed over other competitors because we know better than anyone the characteristics and needs of the country. In addition, we act as a showcase for Spanish brands all over the world.
What is your relationship like with Aena after your attempts to overthrow before the Supreme and Constitutional Court the law that requires lower rents in duty free stores due to the impact of the pandemic?
We do not have any problem. At Dufry we welcome the regulations approved by the Congress of Deputies with open arms. It allowed us to lower the rents of the premises based on passenger traffic. To this day, we still use it, although in a very residual way.
Continuing with the new tender: what characteristics will your offer have? The forecast business volume is 18,000 million euros, the available surface area increases by 40% and the concession period is also significantly increased, from seven to twelve years.
We cannot disclose the conditions of the offer. We are going to present it next May. On the table we will put a good financial and commercial offer. We are going to take into account sustainability and local product criteria.
What products are usually the best sellers?
30% of the business comes from perfumery and cosmetics, followed by tobacco (less than 10%), beverages and food products.
He commented that Spain is also key at an operational level. In what sense?
In Dufry’s management leadership there is a large presence of Spanish managers. Examples are the president himself, Juan Carlos Torres, and Luis MarÃn, who runs business in Europe, the Middle East and Africa. In addition, Dufry has one of its two large logistics centers in Spain.
Where is it located?
It is in the ZAL of the Port of Barcelona. Since Dufry’s landing, the plant has tripled its activity. Today it supplies 32 countries out of the 75 in which it is present. In 2022, it shipped 90 million units of products and employed 184 people. The group’s other logistics center is in Miami (USA) and supplies the American continent.
What has been the investment in this logistics center?
Since 2018, we have invested 1.9 million euros and this year we are going to allocate another million to promote digitization.
What other investments are you going to make?
This year, we are going to invest 500 million euros in renovating and digitizing the operations of all our stores in the world.
Do you have other acquisitions planned?
First we have to digest the absorption of Autogrill well. In the future we do not rule out more purchases in the catering and duty free sector, especially in Asia, where we have less presence than in Europe and America.