NEWS/ANALYSIS
Paris and Italy projects time well with Lagardère’s Europe results
Heady growth returns in Europe have paid dividends for Lagardère Travel Retail, with total sales up 9.1% like-for-like in 2017. As Luke Barras-Hill reports, the result provides the perfect tonic to pursue new activities in the region.
sign. This is coming from healthy organic sales and the integration of new contracts. “From a sales point of view, we
Above: Clinique banners suspend above the entrance to Aelia Duty Free's main walkthrough shop at London Luton Airport.
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have started 2018 very strongly. Our focus this year will be to maximise the current [retail] footprint, increase spend per pax and sales and win new, profitable contracts dependent on the opportunities.” Splitting out Lagardère Travel Retail’s regional performances, EMEA (excluding France) increased by 13.6% fuelled by the aforementioned network expansion in countries such as Switzerland, Eastern Europe and Italy, all of which benefitted from increased passenger traffic and new concepts.
agardère Group was quick to single out travel retail’s ‘outstanding contribution’
within the conglomerate’s recently published full-year 2017 results. This may not come as too big a surprise, given the flurry of contract wins and development activities that have helped subsidiary Lagardère Travel Retail grow its retail estate over the past 12 months. Group revenues rose by 4%
on a like-for-like basis to reach €7.1bn ($8.7bn), according to a results statement. Momentum in the travel retail division outpaced Group growth, with a +9.1% showing (like-for-like)
Lagardère Group was quick to single out travel retail’s ‘outstanding contribution’ within the conglomerate’s recently published full-year 2017 results.
TRBusiness 16 TRBUSINESS
to total €3.4bn ($4.1bn) confirming earlier indications issued by the firm in February. Revenue on a consolidated basis declined by 7.7% owing to a negative scope effect of €556m ($684m) linked to the divestment of the Group’s press distribution activities in Belgium, Hungary, Spain and Canada. But once again, healthy organic growth trumpeted performances across the division, with travel retail recurring EBIT up 18% or by €17m ($21m), attributable to EMEA. ‘Good momentum’ was witnessed from its home-based France duty free segment, which grew by 8% due to expansions in its network and foodservice activities. “We had a very satisfactory year,”
Ambroise Fondeur, Chief Business Officer, Lagardère Travel Retail confirms to TRBusiness. “What is interesting is we
accelerated in the last quarter by 10.3%, which was a very good
Paris renovations The takeover of duty free activities in Geneva; several openings in Gdańsk, Poland; and strong DF&TR performances from the Czech Republic’s duty free and fashion segment – including nine new shop openings at Prague Václav Havel Airport – further cemented Lagardère Travel Retail’s DF&TR influence in Europe. Meanwhile, the opening of new stores at Rome Fiumicino Airport’s Avoncorpo T3 zone and ‘dynamic traffic growth’ (+8%) at Venice Airport also paid dividends. In France, duty free and fashion
revenue improved by 3.8%, but the negative impact of plain cigarette packaging (-15% year-on- year) together with strengthened security checks at French airports dampened growth. Notwithstanding these impacts, a favourable euro exchange rate versus the rouble together with new
APRIL 2018
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