Avolta Ltd

Latest Results (26.04.2026):

Avolta Ltd — Q4 2025 (year ended December 31, 2025): The company’s report shows a strong year with a statutory profit of CHF 723 million (2025) versus a loss of CHF 37 million (2024) for the year, driven largely by a CHF 786 million reversal of impairment. On a CORE (adjusted) basis, consolidated CORE EBITDA was CHF 1,324 million and CORE net profit CHF 645 million. Balance sheet and cash metrics remain robust with financial net debt of CHF 2,531 million and active capital return measures (buyback and proposed distribution) announced.

Profitability

Statutory profit: Avolta reported a 2025 statutory profit of CHF 723m (2024: loss CHF 37m) at the parent level, mainly reflecting a CHF 786m impairment reversal. Consolidated CORE net profit (adjusted) was CHF 645m (2024 CORE: CHF 550m), and CORE EBITDA rose to CHF 1,324m.

Key drivers

The primary one-off driver was the CHF 786m reversal of impairment on investments in subsidiaries. Operational performance (CORE) also improved: turnover and CORE EBITDA increased modestly year‑on‑year (CORE EBITDA 1,324 vs 1,267), indicating underlying business resilience beyond accounting reversals.

Balance sheet

Total assets for the parent were CHF 6,284m (2024: CHF 5,840m); investments in subsidiaries rose to CHF 6,160m. Shareholders’ equity at the parent was CHF 6,170m (2024: CHF 5,743m), helped by the profit for the year and retained capital contribution reserves.

Cash, debt and liquidity

Consolidated financial net debt (excluding IFRS‑16 leases per Avolta’s presentation) was CHF 2,531m at year‑end 2025 (2024: CHF 2,663m). Cash and cash equivalents reported at group level were CHF 727m. CORE cash generation produced equity free cash flow of CHF 487m.

Capital allocation & shareholder returns

Avolta completed the 2025 buyback program (up to CHF 200m) and held 5,001,000 treasury shares (CHF 204m cost) at year‑end. After year‑end, 4,861,342 shares were cancelled (Feb 23, 2026). The Board proposed a distribution of CHF 1.15 per share (~CHF 163m) to be paid from the capital contribution reserve and approved a new 2026 buyback program of up to CHF 225m.

Operational metrics

CORE turnover (net sales + advertising, adjusted) was CHF 13,720m. Organic growth for the Group was 5.5% in 2025 (Like‑for‑Like +3.9%, net new concessions +1.6%). Trade net working capital improved to CHF 448m (Dec 31, 2025 vs CHF 508m).

Governance, audit and events after reporting date

The audit report from Deloitte is unqualified. Post‑year events included the cancellation of shares (Feb 23, 2026), and the Board’s new buyback approval (Mar 10, 2026). Management flagged geopolitical risks (Middle East hostilities) and is monitoring potential travel‑industry impacts.