Lagardère Travel Retail revenue soars in Q1 but still 29% down on 2019 result

By Luke Barras-hill |

Aelia Duty Free at London Luton Airport.

Revenue for Paris-headquartered Lagardère Travel Retail soared by 103.4% on a reported basis (+96.8% like-for-like*) in the three months ending 31 March 2022 to €694 million/US$763 million.

This result helped propel Lagardère Group sales by 44% on a reported basis (+38% like-for-like) for the period in question to €1,304 million.

In Western Europe, Lagardère Travel Retail virtually tripled its sales (+298.1% excluding France) as health restrictions eased.

The EMEA region (excluding France) as a whole grew by 129.3%, with the Middle East and Africa both yielding strong performances at +135.3% and +86.4%, respectively.

In France, revenue for the division was up 87.7%, while growth across Eastern Europe was more moderate at +60.9%.

North America’s growth of +110.1% was driven by ‘sustained activity’ in the US, where business surged 102.8%, though this was down 9.9% on the first quarter 2019 result.

IMPROVEMENTS, BUT UNCERTAINTY LINGERS…

Meanwhile in Canada, a resounding recovery took growth to almost +400% (+398.2%).

Lagardère Travel Retail has posted an encouraging performance, despite the impact of Omicron. While the recovery pace in the first three months of 2022 echoed the strong momentum at the end of 2021, revenue remains 28.7% down on that recorded in the first quarter of 2019. Source: Lagardère Group. Click to enlarge.

Asia Pacific revenue returned growth of +16.2%.

North Asia produced an uplift of +15.9%, helped by network expansion despite the intensifying health-related travel restrictions in place.

The Pacific region recorded growth of +30.2% further to the lifting of health restrictions since the end of February in Australia.

In a statement commenting on the outlook for the travel retail division, parent Lagardere said: “Due to the diversity of its footprint and operating segments, the division is well placed to benefit from the resumption of flights as and when the health situation permits.

“Although the context is broadly improving, it remains uncertain. The division will closely monitor developments in air traffic in 2022 and is confident in its ability to adapt to the environment which, although volatile, is gradually improving. Lagardère Travel Retail is pressing ahead with its operational excellence drive launched during the crisis, enabling the division to keep flow through in 2022 within a range of 15% to 20%9 , assuming higher business levels than in 2021.”

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