The France business has been boosted by the Extime Duty Free JV with Groupe ADP.

Lagardère Travel Retail turned in first-half 2024* revenue of €2,748 million/$2,957 million – up 18% (reported) and 13.5% (like-for-like).

The EMEA region (excluding France) yielded the sharpest growth of +21.7%, stimulated by a healthy showing in Romania following the company’s duty free contract gain at Bucharest Airport, read an announcement from Paris-based Lagardère Group.

This flanked similar performances in the UK, spurred by duty free growth onboard ferries and in Italy, notably at Rome Fiumicino Airport.

Meanwhile, an 18.1% boost in France owed much to the success of the Extime Duty Free Paris joint venture with Groupe ADP coupled with network upgrades and sales initiatives across its Duty Free & Fashion, Travel Essentials and Foodservice business lines.

Revenue in the Americas improved by 7% against a high comparison basis, prompted by robust momentum in the US, with a sharp uptick in Peru supported by an improved macroeconomic environment.

However, the Asia Pacific business suffered a 17.4% decline in revenue, which the company attributed to the slowdown in China due to the ‘unfavourable economic climate and network streamlining’.

At €1,029 million, Duty Free & Fashion (37%) took the lion’s share of revenue by segment, followed by Travel Essentials at €925m (34%) and Foodservice at €794m (29%).

Foodservice leads growth among segments

Revenue from Duty Free & Fashion jumped 14% versus first-half 2023, with Travel Essentials growing by 11.6%, but the greatest period-on-period gain was witnessed in Foodservice, with revenue leaping 32.7%.

Recurring EBIT for Lagardère Travel Retail totalled €109m, an improvement of 17% on the first-half 2023 result, linked to solid trading across its geographic areas led by Italy and North America, which helped to offset the fall in North Asia.

The difference between the group’s reported and like-for-like result is attributed to a €107m positive scope effect, tied to several acquisitions including the €79m purchase of ‘Tastes on the Fly’ by the travel retail unit.

Source: Lagardère Group. Click to enlarge.

Dag Rasmussen, Chief Executive Officer of Lagardere Travel Retail, told TRBusiness: “In the first half of 2024, we performed exceptionally well, achieving a remarkable 13,5% increase in organic revenues compared to 2023 and recorded a RESOP of €109m. This progress is the result of robust performances across various regions.

“In Europe we entered the Romanian duty free market at Bucharest International Airport, and we won the dining master concession tender at Varna and Burgas Airports, further solidifying our presence in the region. We’ve also opened the first travel essentials refurbished stores as part of our joint venture with Extime Duty Free Paris at Paris Charles de Gaulle Airport.

“Our efforts in Asia have also been rewarded as we secured a 12-year concession under an innovative profit-sharing model to operate duty free & fashion, dining, and travel essentials at Techo International Airport in Cambodia.”

Group revenue climbed 13.3% (reported) to reach €4,193 million.

In an earnings presentation, the group notes Lagardère Travel Retail’s ‘potential for revenue and profitability growth, thanks in particular to its optimisation initiatives’ against the backdrop of continued momentum in global air traffic, though it acknowledges ongoing political tensions and uncertainties with respect to the revival of international Chinese tourism.

Arnaud Lagardère, Chairman and Chief Executive Officer of Lagardère SA, said: “In the first half of 2024, the Lagardère Group continued on its uninterrupted growth trajectory, driven by improved performances across all its businesses.

“Lagardère Travel Retail continued on the growth path, driven notably by growth momentum in air traffic in France and the EMEA region, with recurring EBIT also reaching record levels.”

Lagardere Travel Retail operates a network of more than 5,210 stores across five continents.

*In the six months to 30 June 2024.

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