Lagardère Travel Retail’s nine-month sales to 30 September soared by 26.5% year-on-year to €3,719 million, propelled by record quarterly sales in Q3.
The Travel Retail division was the star performer as parent Lagardère Group reported 15% sales gains (all growth like-for-like), with Publishing and Other Activities flat.
Lagardère said an “exceptional” summer in Europe and the US was behind the stellar quarterly performance. Sales over the period reached €1,390m, an increase of 17.7%.
Despite the nine-months gains, Lagardère Travel Retail was hit by a €22m negative currency effect related to the US dollar and Chinese yuan.
By region, France sales climbed 10.8% in Q3, driven by “especially brisk” trade at local airports.
The remainder of EMEA experienced “strong momentum” with revenues soaring 19.3% on international traffic growth. Italy (+30.6%) and Poland (18.4%) were called out as star performers.
Americas trade increased by 13.6% over the period, with the US growting by 11.6% and Canada surging 27.5% as Asian travellers returned.
Asia Pacific reported 45.7% gains as borders reopened. Lagardère noted this was from a low comparison basis in 2022.
Lagardère Group: ‘Solid performances’
“The Lagardère group is continuing to actively develop its two core businesses, Lagardère Publishing and Lagardère Travel Retail,” said Arnaud Lagardère, Lagardère SA Chairman and Chief Executive Officer.
“We recorded revenue growth of 9.6% in third-quarter 2023, thanks to very solid performances from our two divisions.
“After an exceptional summer, particularly in the United States and Europe, Lagardère Travel Retail’s revenue reached a record high.
“Lagardère Publishing also maintained a high level of revenue despite a market that was overall less dynamic overall than last year.
“In the first nine months of 2023, consolidated revenue was up by more than €900 million year on year.”
Looking ahead to the remainder of 2023, Lagardère said it remained “confident” in its ability to deliver “high level” results in spite of the “uncertain economic and geopolitical environment”.
Last month, Lagardère Travel Retail signed an agreement to acquire 100% of North American airport dining operator Tastes on the Fly.