Avolta reaffirms medium-term outlook

Avolta AG (SIX: AVOL) reaffirmed its medium-term financial targets during its 2025 Capital Markets Day, citing strong first-half performance and disciplined execution of its "Destination 2027" strategy. For H1 2025, the company reported consolidated turnover of CHF 6,734 million, with CORE turnover of CHF 6,613 million, reflecting a 7.1% growth at constant exchange rates and 5.7% organic growth. CORE EBITDA rose to CHF 612 million, a 9.3% margin, up 30 basis points year-over-year, while Equity Free Cash Flow (EFCF) reached CHF 216 million, with a conversion rate of 35.3%.

The company's leverage ratio improved to 2.15x as of June 30, 2025, supported by the successful issuance of EUR 500 million in seven-year senior notes in May 2025. Proceeds were used to refinance maturing debt and repay borrowings under its Revolving Credit Facility. Avolta confirmed its commitment to organic growth of 5%-7% annually, alongside a 20-40 basis point improvement in CORE EBITDA margins and 100-150 basis point EFCF conversion enhancements per year.

Strategic initiatives, including geographic expansion in Asia Pacific, North America, and Latin America, along with digital innovation and hybrid retail-F&B concepts, underpin the outlook. The CEO emphasized resilience in a challenging environment, noting stable conditions in Europe and the Middle East despite softer North American performance. Shareholder returns remain a priority, with a CHF 1.00 dividend per share (up 43% YoY) and a CHF 200 million share buyback program underway.

Avolta's reaffirmed targets reflect confidence in its diversified portfolio and ability to navigate macroeconomic and geopolitical risks while maintaining financial discipline.