Strong growth in Canada maintains NA momentum for Lagardère Travel Retail

By Luke Barras-hill |

The Vino Volo brand represents a significant opportunity in North America, according to Lagardère TR. Source: Lagardère/Aperture Photography.

Lagardère Travel Retail published its first quarter 2023 results today (18 April), with revenue up 50.8% on a reported basis (+44.2% like-for-like) to €1,046 million/$1,119 million.

In a statement, the multi-location travel retailer confirms a 29% uptick in business in North America led by a 114% surge in growth in Canada and ‘sustained activity’ in the US, where business was up 21%.

The EMEA region (excluding France) posted growth of +54% linked to the continued recovery in international passenger traffic, with healthy performances in Italy (+116%), Belgium (+72%), Poland (+55%) and Romania (+35%).

Revenue in France jumped 41%, although the business was affected by strike action.

Meanwhile, Asia Pacific trading continued to benefit from the gradual reopening of China’s borders and the end of its zero-Covid policy with revenue increasing 61%.

The North Asia business specifically, which includes Mainland China, Hong Kong and Japan, was up 56%.

Click to enlarge. Source: Lagardère Group.

Group revenue climbed 28.4% on a reported basis (+24.4% like-for-like) to €1,675 million for the first three months of 2023.

The difference between reported and like-for-like revenue is attributed to a €33 million positive scope effect, mainly in connection with the acquisitions of Marché International (Germany), Creative Table Holdings Ltd (Dubai) and Costa Coffee in Poland by Lagardère Travel Retail, and of Welbeck Publishing Group and Paperblanks by Lagardère Publishing.

This is in addition to a €10 million positive currency effect, chiefly resulting from the appreciation of the US dollar (€18 million positive impact), offset by the depreciation of the British pound (€9 million negative impact).

Arnaud Lagardère, Chairman and Chief Executive Officer of Lagardère SA, commented:”We maintained our remarkable momentum in early year trading, with revenue surging by 24.4% year- on-year during the first quarter.

“Our two core businesses delivered solid performances, with Lagardère Travel Retail registering strong growth and Lagardère Publishing continuing to advance. In addition, the Group’s Other Activities also remained on the growth path. Our strategy has been validated by the Group’s dynamic since the beginning of the year, with Lagardère Group increasingly taking advantage of the strengths of its model.”

As reported, Lagardère Travel Retail swung back to profitability in full-year 2022 with recurring EBIT hitting €136 million/US$144 million.

Regarding Vivendi SE’s proposed acquisition of Lagardère SA, the European Commission has until 14 June 2023 to make a decision on the takeover following a notification filed with the European Commission in October.

Click to enlarge. Source: Lagardère Group.

The Group notes that the shares acquired by Vivendi SE from Amber Capital and in the public offer ‘will not carry effective voting rights until the takeover is approved by the competition authorities’.

Vivendi can currently exercise only 38,387,791 voting rights representing approximately 22.81% of the total share capital (for more on the background, click here).

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