Avolta AG

XMUN:D2J

Growth: Avolta reported 3.7% organic growth in the first half, which management said would have been 5.2% excluding the Middle East crisis impact.

Margin: EBITDA margin came in at 9.1%, but management said it would have been 9.5% excluding Middle East and ramp-up effects from Shanghai Pudong and JFK.

Cash flow: Equity free cash flow was CHF 207 million, roughly flat year over year, with a very strong Q2 contribution of CHF 370 million.

Outlook: Management reaffirmed the midterm outlook of 5% to 7% organic growth, 20 to 40 basis points of annual EBITDA margin expansion, and higher equity free cash flow.

Headwinds: The Middle East crisis, Pudong and JFK ramp-ups, Spirit Airlines bankruptcy, and weaker capacity growth in North America all weighed on the half.

Capital allocation: Avolta reiterated its focus on investment, selective accretive M&A, deleveraging, dividends, and share buybacks; leverage fell to 2.07x.

Digital push: Club Avolta reached 20 million members, and management said it is expanding pilots for dynamic pricing, dynamic assortment, camera analytics, and digital advertising.