Lagardère Travel Retail reports 6.4% like-for-like nine-month revenue growth

By Andrew Pentol |

BuyParis_LagardereQ1results

France posted robust growth for Lagardère Travel Retail in Q3 2019.

Lagardère Travel Retail has reported like-for-like revenue growth of 6.4% (15.5% on a consolidated basis) in the first nine months of 2019 (ended 30 September) to €3.1bn from €2.7bn the year before.

In the third quarter, revenue increased 6.3% on a like-for-like basis to around €1.15bn, from just over $1bn during the previous corresponding period in 2018. Growth was maintained in all geographies, especially Europe and China which were boosted by positive sales performances and expansion across the point of sale network.

Continued organic growth momentum at Lagardère Travel Retail in Q3 helped drive overall Lagardère Group revenue in the third quarter. During this period, the Group posted 4.1% like-for-life revenue growth totalling €2bn, versus €1.9bn in Q3 2018. The net €9m positive scope effect in Q3 is mainly due to Lagardère Travel Retail’s acquisition of Hojeji Branded Foods in the United States.

During the first nine months of 2019, sharp organic growth helped the Lagardère Group maintain its growth momentum. The Group generated revenue of €5.6bn during the nine-month period, up 6.7% on a consolidated basis and 5.7% like-for-like.

Lagardère Travel Retail’s sustained like-for-like growth was driven by France (+7%), on the pack of positive sales performance and store openings, the EMEA region excluding France (+6%), North America (+3.1%) and Asia Pacific (+7.3%).

ROBUST GROWTH IN FRANCE

In Q3, France continued to post robust growth (+7.6%). This was driven by positive performances from the duty free segment, especially at the regional platforms, growth in the Foodservice and Travel Essentials networks and success of broader product offerings and sales initiatives.

Lagardere-results-for-web

Lagardère Travel Retail revenue rose 6.3% on a like-for-like basis in Q3 2019 to €1,1bn and 6.4% in the first nine months of the year to €3.1bn.

Solid 7.4% revenue growth in the EMEA region (excluding France) was buoyed by a positive sales dynamic in Italy and network growth in Central Europe (Romania) and the Iberian peninsula (Valencia, Malaga, Canary Islands). Growth in the Middle East (opening of the Dubai Foodcourt in September 2018) and Africa (opening of a concession in Gabon and continued strong business growth in Senegal) also contributed.

Business remained stable in North America (+0.9%), as bullish growth in Foodservice (new sales outlets in Dallas and Denver) offset the negative impact of Hurricane Dorian and the closure of points of sale at Pittsburgh Airport. International airports were affected by the China-US trade war.

Lagardere-chart

Continued Lagardère Travel Retail organic growth momentum in Q3 helped drive overall Lagardère Group revenue.

Revenue growth of +8.8% in the Asia-Pacific region was driven by organic expansion in China, which benefited from favourable network effects and strong market momentum. Hong Kong operations were affected by the protests, but partly countered by network growth at Hong Kong Airport. Business was down 2.2% in the Pacific region due to the economic slowdown and an unfavourable network effect in Australia, partly offset by new openings in New Zealand.

Highlights for the division post 25 July 2019, include the acquisition of Belgium’s leading travel retailer International Duty Free which is also present in Luxembourg and Kenya. The company will be consolidated in Lagardère’s financial statements effective 1 October 2019.

Lagardere-Gabon

The opening of a concession at Libreville Airport in Gabon, contributed to solid third-quarter revenue growth in the EMEA region.

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