INTERNATIONAL. Travel retail and food & beverage company Lagardère Travel Retail today posted a +13.5% year-on-year rise (like-for-like/+18.0% reported) in first-half revenues to €2,748 million.
Recurring EBIT reached a record €109 million driven by solid performances across the EMEA region (with standout performances in Romania, Italy and the UK) and North America, which offset a Mainland China-driven decline in North Asia.
The difference between reported and like-for-like data was attributable to a €95 million positive scope effect, mainly reflecting the food & beverage sector acquisitions of Tastes on the Fly (€79 million), Marché International (€9 million) and Costa Coffee in Poland (€7 million). A €3 million negative currency effect mainly related to the depreciation of the Czech Koruna and Chinese Yuan also contributed.
The performance was revealed within parent company Lagardère SA’s H1 results revealed today (see group details below).
Lagardère SA Chairman and Chief Executive Officer Arnaud Lagardère said: “Lagardère Travel Retail continued on the growth path, driven notably by positive air traffic momentum in France and the EMEA region, with recurring EBIT also reaching record levels.”
Lagardère SA commented: “With robust momentum in global air traffic, amid ongoing geopolitical tensions and uncertainties regarding the revival of international Chinese tourism, Lagardère Travel Retail has potential for revenue and profitability growth, thanks in particular to its optimisation initiatives.”
In France, business surged +18.1%, supported in particular by the success of the Extime Duty Free Paris joint venture with the ADP group, as well as network upgrades and sales initiatives rolled out across all networks and business lines.
As noted, Lagardère Travel Retail’s EMEA region (excluding France) saw sharp growth of +21.7%, buoyed by “excellent” performances in Romania (following the opening of the duty free concession at Bucharest Henri Coandă International Airport), the UK (on the back of the development of duty free on ferries) and in Italy (thanks to a dynamic performance at Rome Fiumicino Airport Leonardo da Vinci).
Revenue in the Americas grew by +7.0% against a high comparison basis, driven by robust momentum in the USA. Peru also recorded “very sharp growth”, supported by an improved macroeconomic environment.
However, the Asia Pacific region recorded a sharp decline of -17.4%, due to the slowdown in China as a result of what the group called “unfavourable economic climate and network streamlining [i.e. store closures and contract withdrawals -Ed].
Speaking about group performance, Arnaud Lagardère commented: “In the first half of 2024, the Lagardère group continued on its uninterrupted growth trajectory, driven by improved performances across all its businesses.” ✈
