Gebr. Heinemann posts +21% rise in 2024 turnover to €4.3 billion despite ‘complex environment’

GERMANY. Leading travel retailer and distributor Gebr. Heinemann posted a +21% year-on-year rise in turnover in 2024 to €4.3 billion, despite what the company termed a ‘complex environment’, with volatility and uncertainty across some key markets.

The family-owned company revealed the details at its annual press conference in Hamburg on Thursday, with views on strategy and key projects provided by Co-CEOs Max Heinemann and Raoul Spanger alongside Chief Commercial Officer Inken Callsen.

2025 has also started positively with turnover up +13% on the same period last year, and the encouraging trend continuing in its Q2 performance to date.

Key talking points from the media gathering included the view from senior management that instability is part of the ‘new normal’ for travel retail. Max Heinemann said the company – having celebrated its 145th year in 2024 – is comfortable about its status within the industry as a “partner company of choice” in an uncertain world.

The senior team also addressed changing consumer expectations of the sector amid the shift from the transactional to the experiential in retail; while declining spend per passenger in many markets and how this can be addressed was a key talking point.

Other areas of focus included travel retail’s place in the wider aviation eco-system; how contracts designed for pre-pandemic times should evolve to meet post-COV ID demands; and how Gebr. Heinemann is thinking about – and investing in start-ups that support – travel solutions for the future.

Watch out for more detail on these and other takeaways from the event in coming days.

Max Heinemann affirmed the company “thinks in generations, and our employees as well as our partners can count on that” after it marked its 145th year in business on 1 November 2024.

He added, “I am therefore even more pleased that my cousin, Clara Heinemann [daughter of Claus Heinemann], is now the second member of the fifth generation to be actively involved in the company.”

Heinemann continued, “We have grown into a global group of companies. The courage to take new paths is part of our recipe for success, and we see great potential in our innovative capabilities. Innovation is driven by embracing decentralised ideas, by provocation, by creating different views, and by envisioning the future of our industry to unlock underlying potential for the next generation. This requires collaboration on many different levels and across company boundaries, which we actively promote.”

Assessing 2024 in detail, Raoul Spanger said: “We saw a strong performance across the majority of our sales regions, gained many new customers in distribution and expanded our activities, for example in Africa. This result is very satisfying.

“We also celebrated several successes that will continue to shape our growth in the future. These included the start of operations at Jeddah [King Abdulaziz International] Airport and aboard Saudi Arabia’s first cruise ship, AROYA, as well as Royal Caribbean’s Utopia of the Seas. In addition, we secured tender wins at Noida International Airport in India and Keflavik Airport in Iceland, both new markets for our retail business, and at Antalya Airport in Türkiye together with ATU Duty Free.”

Strong regional performance in core European markets and Middle East/Africa – designated as a key growth region – buoyed sales in 2024. Cruise and inflight channels grew steadily, and the business in Israel stabilised despite difficult conditions. In February 2025, sales at Ben Gurion Airport, Tel Aviv hit an all-time high for that month on strong Israeli spend in arrivals and departures.

Alongside the impact of conflict on travel or spend in some territories, others face challenges including inflation or currency devaluation, while the industry is also seeing “new travel and shopping behaviours around the globe”.

Spend per passenger has come under acute pressure in many markets, management added, with lower contribution from Chinese travellers – their spend has roughly halved compared to pre-pandemic times – affecting operations in the Asia Pacific region and popular China travel hubs such as Frankfurt Airport.

Europe remained the region with the largest share of turnover at 56%, with retail and distribution important. The company this month began operations at Keflavik International Airport, Iceland, following a tender win last year.

Türkiye and Middle East Africa represented 33% of revenue in 2024, led by Istanbul Airport, where Heinemann operates with its joint-venture partners Unifree Duty Free and ATÜ Duty Free. The company’s presence in Türkiye was enhanced by the late 2024 duty-free contract gain at Antalya Airport through ATÜ Duty Free.

Spanger said, “We see additional potential in the region. To be close to the market and our customers, we elevated our Dubai office, which has been operational since 2023, to the status of a regional headquarters and will continue to strengthen our team there.

“With the appointment of Bernard Schlafstein as CEO of Heinemann Middle East Africa and the opening of our new logistics hub in Istanbul in 2026, we are sending a strong signal to our partners and customers within the region.”

Asia Pacific accounts for 9% of turnover. Sydney and Kuala Lumpur airports in particular have been “severely affected” by reduced spend among Chinese travellers, Spanger said.

He explained a recent strategic refocus in Asia Pacific, saying: “We needed to swiftly and thoughtfully realign our business activities to ensure operational efficiency in a significantly reduced market. At the same time, we are very positive about our tender win at Noida Airport. India is an emerging market in travel retail, and we see the Indian consumer gaining momentum everywhere across our customer portfolio.”

Management expressed the ambition to growth its Indian footprint further in the future after its Noida Intenational Airport operations begin in the autumn.

Airports retain dominance

With a 72% turnover share, the airport business remained the strongest sales channel. Border shops were next with 8%, followed by cruises and ferries at 6% and airlines with 3%.

Other channels such as the diplomatic business, free trade zones, military bases and Nobilis Group (a beauty distributor and service partner operating in German, Austria and Switzerland) accounted for 11%.

Among the other key concession gains and business expansions in 2024 were the start of operations aboard Royal Caribbean’s Utopia of the Seas, and the launch of the shops aboard Cruise Saudi’s AROYA, featuring over 250 international and Arabian brands.

Gebr. Heinemann took another step in Saudi Arabia by starting operations at King Abdulaziz International Airport in Jeddah together with joint-venture partners Jordanian Duty Free Shops and the ASTRA Group.

At Vienna Airport, the Main Shop Plaza in Terminal 1 underwent a major expansion. The store has been enlarged from 1,200sq m to around 2,000sq m and now offers the largest travel retail experience in Austria.

The company also grew its distribution business, with highlights in 2024 including contract renewals with Color Line in the ferry channel and with Eurotrade, the wholly owned Munich Airport subsidiary. The Eurotrade partnership has now run for 50 years.

By category, liquor, tobacco & confectionery collectively grew +17% compared to the previous year and accounted for 46% of turnover, while beauty increased +24%, representing 42% of sales. Fashion & accessories sales climbed +28%, accounting for 8% of the mix.

Within beauty, niche fragrances continue to be a driver, with a +29% year-on-year increase for B2C sales. Niche fragrance concepts have been implemented in Vienna, Istanbul and Copenhagen airports and aboard the AROYA cruise ship, with plans to expand these to Jeddah and Antalya airports in 2025. The fragrances sub-category as a whole, which already accounts for around 70% of beauty sales, still has further room to grow, Heinemann believes.

The company also highlighted the power of promotions supported by celebrity and social media, with Rod Stewart’s Wolfie’s Whisky a notable example. In conjunction with his Hamburg concert last year, Gebr. Heinemann showcased signed golden LPs and exclusive memorabilia at Hamburg Airport, which the Scottish singer shared on Instagram, gathering 1.9 million views.

Value through collaboration

Chief Commercial Officer Inken Callsen called out the importance of collaboration with brands and other partners, saying that when done well, it leads to “innovation, growth and shared success. It is our mission to turn collaboration into value for the consumer and all stakeholders of travel retail.”

A highlight was the Gebr. Heinemann Supplier Summit, hosted in September 2024 with suppliers from around the world invited.

“It is our shared goal to turn more travellers into shoppers and increase the conversion rate as well as the average basket size by closely working together,” she said. “Consumers have to be excited by our offer. The mid-range assortment is not going to inspire travellers. We focus on luxury products, niche selections, travel retail and Heinemann exclusives, as well as entry-level options.”

Gebr. Heinemann aims to enhance its global strength by consolidating its negotiating power, she added, with a focus on more efficient partnerships and taking a long-term strategic approach to grow business. “With this approach, we are presenting ‘one voice to the customer’ and expect the same from the big international brands,” said Callsen.

In aiming to set a benchmark in the industry, Gebr. Heinemann has launched a global assortment project led by Clara Heinemann. This includes a data-driven approach to define and manage the assortment more effectively and with greater impact.

Callsen said, “Data-based work is relevant to all areas of the travel retail business. Collecting and sharing data goes hand in hand. Data becomes truly impactful when it is actively utilised, for example to create intelligent pricing and activating price advantages.”

Gebr. Heinemann said that “engine-based, location-specific and differentiated B2C pricing is the new standard across all categories and locations”.

Callsen stated, “We are expanding our global strength by leveraging our know-how across all regions and channels. This enables us to strategically apply specific knowledge according to local requirements, such as concerning pricing insights and consumer behaviour, and create genuine added value for consumers, B2B customers, brands and landlords.”

Collaboration, added the company, also includes working together to ensure that the travel retail business is not threatened by illicit trade, counterfeiting and intellectual property theft.

Gebr. Heinemann actively supports industry topics and campaigns, such as the industry’s ‘Duty Free: Trusted, Transparent, Secure’ campaign, which aims to raise awareness of the issue and seeks engagement with government officials, regulators and enforcement authorities to ensure that all stakeholders are aware of the industry’s zero-tolerance approach.

2030 sustainability goals

In 2024, Gebr. Heinemann made further advances toward its 2030 sustainability goals within all four dimensions of its global sustainability strategy: Environment, Social, Governance and Responsible Value Chain.

Spanger noted: “We are committed to achieving our 2030 sustainability goals and enhancing collaborations along the value chain. Our partners value our dedication to joint initiatives, and we receive high ratings in tenders for our socially and environmentally responsible concepts.”

Key targets under these pillars include:

• Environment: Gebr. Heinemann aims for net-zero emissions in Scopes 1 and 2 by 2030. The company has already reduced emissions by around -50% from the baseline year of 2019, meeting its 2024 interim target. The majority of Scope 3 emissions occur in the supply chain, it noted. However, with a -25% reduction by the end of 2024 (excluding Scope 3.1) the company said it is well on track, due to collaboration with forwarders and several initiatives, including the shift to rail, the conversion to HVO and the use of e-trucks. One example is the partnership of Gebr. Heinemann and its Turkish joint venture partner, Unifree Duty Free, with the transport company Mars Logistics to pilot a shift from road to rail for transporting goods.
• Social: Gebr. Heinemann introduced an updated global strategy for diversity, equity and inclusion. As a first step, the company published an internal policy to provide a unified international framework for orientation and established a steering committee.
• Governance: Gebr. Heinemann expanded its overarching global Corporate Responsibility Committee to include three subcommittees for the Environment, SociaI and Responsible Value Chain areas of action. They focus on promoting the 2030 sustainability goals and monitoring progress.
• Responsible Value Chain: Gebr. Heinemann works closely with its suppliers to ensure high standards for sustainable products. The company expects its suppliers to be evaluated by independent third-party assessments such as EcoVadis and B-Corporation certifications and already achieved 70% of its purchasing volume through these assessments in 2024.

In addition to its partnership with L’Oréal, Gebr. Heinemann has concluded joint green business plans with Diageo, Tony’s Chocolonely and EssilorLuxottica, extending the reach of sustainability initiatives across the core categories.

Assessing potential and prospects for 2025, Spanger said (in the company’s annual report): “Standing on two legs, retail and distribution, and across sales channels, offers us various opportunities to grow – in new as well as in existing partnerships and markets. To give just one example, we see further potential in the Middle East & Africa region and are working hard to make our market entries in Saudi Arabia and India a great success.

“To be close to the market and our customers in the region, we opened a regional headquarters with Heinemann Middle East Africa in Dubai in 2024 and will further strengthen our team there. We are also continuing to invest in our promising border shop channel. Additionally, we are collaborating with suppliers and customers to further internationalise the flow of goods in our supply chain, aiming to significantly reduce emissions and achieve our sustainability goals.”

Max Heinemann said, “We have grown into a global group of companies, diverse with a variety of extraordinary skills and strengths, and probably the most innovative partner in our industry. The courage to take new paths is part of our recipe for success, and we see great potential in our innovative capabilities, led by our vision hub, GHARAGE and beyond.

“Innovation is driven by embracing decentralised ideas, by provocation, by creating different views, and by envisioning the future of our industry as a whole to unlock underlying potential for the next generation. That’s family business. That’s taking the long view. That’s how we think and act.”

Long-time Co-Owners Claus and Gunnar Heinemann also commented in the annual report on their “immense pride” in the company’s 145-year history and signalled an upbeat note about the future.

“Our business model is robust and future-proof. That is why we continue to look to the future with confidence. This is also underpinned by the ongoing transition from the fourth to the fifth generation of our family business.

“As only about one percent of family businesses make it to the fifth generation, we are all the more proud that our shareholder Clara Heinemann took the step of actively entering the company in September. Her personal commitment to Gebr. Heinemann is proof of our enduring legacy.”

*Watch out for more takeaways from the Gebr. Heinemann media day on our platforms.