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Introduction 
Dufry is a global travel retailer operating in 43 countries, maintaining more than 1,000 branches with some 180,000m2 of sales surface. In its area of activity, Dufry is #1 in terms of sales; it achieves about 9% market share. Most of the sales occur in EMA.

For several years now, the travel sector has been in a consolidation phase, market share is either purchased through acquiring global companies or by absorbing particular franchise operations. It is expected that this trend will continue for a number of years and that Dufry will play a major role in this strategic shift. 

Strengths and weaknesses analysis / Fundamental analysis 
Strengths:

• Dufry focuses its operations on strong sales growth and high margin products in the retail market for travelers,
• The business concept is built on three pillars: organic growth, new concessions/franchises and acquisitions,
• The group is well exposed throughout the emerging markets, mainly in Latin America and Asia,
• The integration of Hellenic Duty Free is progressing as planned; this addition is increasing turnover by about 10% and is adding about 17% of EBITDA,
• The management has a well thought-out strategic concept for long-term growth and its being executed to perfection.

Weaknesses:

• The principal competitors with international aspirations are Lagarder (presently #4 in terms of market share), and the South Korean, Lotte Duty Free. Both have an aggressive drive for rapid expansion which eventually may impact Dufry negatively,
• Dufry is very dependent on good consumer sentiment, any slowdown will impact its turnover,
• Dufry’s turnover is based on a very broad range of articles for day-to-day travelers. In its segment “general travel items”, Dufry has about 50,000 items referenced. It is doubtful that a company can manage 50,000 items in more than 1,000 shops across 43 countries efficiently.

Investment opportunity / Portfolio management 
Operational risks: Medium to high
Expected growth: Average
Investment orientation: Group « Best-in-Class », International Small and Mid-Cap