Lagardère Travel Retail posts strong revenue growth in first nine months
FRANCE/INTERNATIONAL. Lagardère Travel Retail has reported a +7.1% year-on-year revenue increase (on a consolidated basis) in the first nine months of 2018, to €2.725 million. Like-for-like growth was +9.9%.
The difference between the consolidated and like-for-like figures was attributed to a €65 million negative foreign exchange effect resulting from the depreciation of the US Dollar, and to a €4 million negative scope effect.
Third quarter revenue was up +9.2% on a consolidated basis and +9.8% like-for-like, to €1,002 million. The difference reflected a €5 million negative foreign exchange effect.
Lagardère Travel Retail’s strong performance drove the Lagardère group’s overall momentum during the quarter and in the first nine months. Group revenue was up +1.9% (consolidated) and +3.7% (like-for-like) in the first nine months to €5,261 million and +2% (consolidated) and +2.6% (like-for-like) in the third quarter to €1,895 million.
In the third quarter, Lagardère Travel Retail experienced positive business momentum (+6.2% like-for-like) in France. The company attributed this to new concepts being rolled out in Travel Essentials, network expansion in Foodservice, and sustained growth at regional Duty Free hubs (particularly Nice and Bordeaux airports).
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The EMEA (Europe, Middle East and Africa) region (excluding France) posted +9.3% like-for-like growth in the quarter. Lagardère Travel Retail noted the impact of new store openings in Geneva (Switzerland), Gdansk (Poland) and Dakar (Senegal), and good performances in Central Europe and Italy (expansion of Travel Essentials and “brisk momentum” in Foodservice). These performances “more than offset” the non-renewal of the Terminal 2 concession at Warsaw Chopin Airport in Poland, the company said.
Growth in North America was +8.5% on a like-for-like basis, driven by upbeat sales momentum, a pick-up in network expansion and a favourable comparison basis after the hurricane season in 2017.
The Asia Pacific region delivered + 22.5% like-for-like growth in the quarter, with Asia benefiting from the launch of the new Hong Kong concession and a favourable network effect in China, which together offset contrasting performances in the Pacific region.