FRANCE. Lagardère Travel Retail stole the show as parent company Lagardère today revealed “remarkable” growth for the first three months of 2023 with groupwide sales surging by +28.4% (reported) and +24.4% (like-for-like) to €1,675 million.
The French group said the result had been driven by Lagardère Travel Retail’s “strong momentum”. The travel retail arm posted €1,046 million in revenue during the first quarter, up by +50.8% year-on-year and +44.2% like-for-like. The difference between reported and like-for-like revenue is attributable to an €11 million positive currency effect, resulting mainly from the appreciation of the US Dollar (€10 million positive impact).
Lagardère Travel Retail’s steep revenue rise was driven by the resurgence in international air traffic, the beginning of the recovery in North Asia and the success of numerous commercial initiatives, the group said.
Lagardère Travel Retail results in detail
Encouraging results were reported in all markets, above or equal to 2019 levels, except for France which was impacted by the strikes but still up +41% compared to the same period in 2022.
The EMEA region (excluding France) also noted a strong recovery of +54%. The improvement was boosted by a strong recovery in air travel, particularly in Italy (up +116%), Belgium (up +72%), Poland (up +55%) and Romania (up +35%).
In North America, the company also recorded a strong momentum with an increase of +29%, driven by sustained activity in the US, where business was up +21%.
Revenue in Canada also recovered sharply, surging +114% over the quarter, thanks to the strong rebound in domestic air travel, despite the impact of flight cancellations and weather-related disruption in December and January.
Asia Pacific saw accelerated growth, marking a +61% revenue increase in the region. North Asia grew by +56%, benefitting from the removal of COVID-linked policy restrictions in China and the gradual reopening of borders.
Revenue for the Lagardère Group as a whole totalled €1,675 million for the first quarter of 2023, up +24.4% on a reported basis and +24.4% like-for-like. The difference between reported and like-for-like revenue is attributable to a €10 million positive currency effect, chiefly resulting from the appreciation of the US Dollar (€18 million), offset by the depreciation of the British Pound (€9 million negative impact).
It is also related to a €33 million positive scope effect, mainly in connection with the acquisitions of Marché International (Germany), Creative Table Holdings Ltd (Dubai) and Costa Coffee in Poland by Lagardère Travel Retail, and of Welbeck Publishing Group and Paperblanks by Lagardère Publishing.
Lagardère SA Chairman and Chief Executive Officer Arnaud Lagardère commented: “We maintained our remarkable momentum in early year trading, with revenue surging by 24.4% year on year during the first quarter. Our two core businesses delivered solid performances, with Lagardère Travel Retail registering strong growth and Lagardère Publishing continuing to advance.
“In addition, the Group’s Other Activities also remained on the growth path. Our strategy has been validated by the Group’s dynamic since the beginning of the year, with Lagardère group increasingly taking advantage of the strengths of its model.” ✈
