By Ozan Ergenay
March 11 (Reuters) – Swiss duty-free retailer Avolta said on Wednesday it was too early to predict the impact on its business from the conflict in the Middle East after reporting full-year results for 2025.
Markets have been disrupted by the escalating tension in the Middle East, sparking fears that the widening war in the region will create an oil price shock, raising inflation and delaying interest rate cuts.
“It is still very early, our footprint in the Middle East is only around 3% of turnover, and we don’t know from today’s perspective what happens with the global economy and consumer sentiment,” CFO Yves Gerster said on a call with Reuters.
“We looked into the data of oil prices historically and the correlation between our growth and the industry growth in general, even passenger numbers and the oil price evolution, is very small. So there’s a very weak correlation.”
NO PLANS TO EVACUATE STAFF
As the US-Israel war with Iran continues into second week, a spokesperson of Khatam ol Anbia joint command said on Wednesday Iran will target economic and banking interests linked to the U.S. and Israel in the Middle East.
Asked about any consideration of evacuating staff or shutting operations in the region, Gerster told Reuters that the company has no have such intention for now.
“Absolutely not. It is too early to take actions like that, and the strength we have in our business is to have the geographical diversification,” he said.
(Reporting by Ozan Ergenay in Gdansk, editing by Matt Scuffham)
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