Tightened travel restrictions in most countries across Europe dented Lagardère Travel Retail’s first quarter earnings, which fell by 57.6% on a reported basis (-56.1% like-for-like) year-on-year to €341 million/$406 million.

The Paris-headquartered Group today (27 April) announced a 33.5% fall in reported revenue (-29.8% like-for-like) to €1,361 million/$1,620 million.

Lagardère Travel Retail revenue in Europe, Middle East and Africa (excluding France) sunk by 63.8%, though Central Europe performed better as a result of the division’s city centre shops.

North America sales were down by 51.6% with business in the first two months of 2021 broadly in line with Q4 2020, according to a statement, although there were signs of a slight improvement in March as vaccination campaigns gathered pace and restrictions on domestic travel eased.

CHINA REVENUE UP

In Asia Pacific, revenue fell by 31.9% due to sharp trading declines in New Zealand, Australia and Singapore as a result of border closures.

However, revenue across China lifted by 37.1% as the company consolidated its presence amid more favourable passenger traffic conditions.

A statement read: “Trading at Lagardère Travel Retail closely mirrors air passenger traffic in the different regions, both in Europe, in the context of the prolonged lockdown, and in the United States, where there are signs of a nascent recovery in domestic air traffic.

“In 2021, the division will press ahead with the earnings protection initiatives launched in 2020, enabling Lagardère Travel Retail to minimise flow through in 2021 versus 20191, depending on the pace of the recovery. Lagardère Travel Retail is also actively continuing efforts to control cash, especially as regards working capital and capital expenditure in 2021.”

Separately, press rumours circulating in recent days regarding the transfer of Lagardere’s corporation position into a joint-stock company have been addressed by the Group, which confirmed it is studying a project to that end.

“Discussions are ongoing in this respect between the company and its main shareholders,” read a statement. “There can be no certainty as to the outcome of the current discussions. Lagardère SCA will not comment further and will communicate in due course in accordance with applicable regulations.”