NEWS ROUND-UP Lagardère notes ‘outstanding’ TR showing as sales hit $4.1bn


Solid regional performances in EMEA and ASPAC helped to buoy Lagardère Travel Retail’s full-year 2017 results by 9.1% (like-for- like) to total €3.4bn ($4.1bn). Revenue dropped by 7.7% on a


consolidated basis, which the company says relates to a negative scope of €556m ($684m) due to the divestment of its press distribution activities (Belgium, Hungary, Spain and Canada), according to an annual results statement. Healthy organic growth aided the overall


performance, with ‘good momentum’ from its France duty free segment (+8%), primarily owing to advances in its foodservice activities coupled with ongoing network expansion. Lagardère Group notes the ‘outstanding


contribution’ from travel retail, as overall Group revenue grew by 4% on a like-for-like basis to total €7.1bn ($8.7bn). The travel retail division’s contribution to group sales helped improve recurring EBIT


by 2% to reach €403m ($496m). EMEA (excluding France) rose by 13.6%,


fuelled by network developments in Switzerland, Eastern Europe and Italy. In France, duty free and fashion revenue


improved by 3.8%, but the negative impact of plain cigarette packaging (-15% year-on-year) coupled with strengthened security checks at French airports dampened growth. Asia Pacific continued to impress,


posting an uplift of +9.8% driven by the new CDF-Lagardère Company concession at Hong Kong International Airport and solid showings from Lagardère Travel Retail’s fashion stores in China (Shenzhen) and Singapore. The Pacific region benefitted from the


modernisation of Aelia Duty Free’s Auckland store, but Australia was negatively impacted by the loss of its travel essentials concession at Sydney T1 in 2016. The North America business was lifted


by the successful integration of Paradies and its associated synergies, alongside several openings in the US at JFK T4, Tampa, Vancouver, Dallas, Washington and Austin. [Turn to page 16 for detailed coverage of


the full-year results plus an in-depth interview with Ambroise Fondeur, Chief Business Officer, Lagardère Travel Retail].


ACI Europe Conference and Exhibition in Israel draws around 300 delegates “There were 153m air travellers between


The 27th annual ACI Europe Airport Commercial & Retail Conference & Exhibition attracted more than 300 delegates in Tel Aviv, Israel. Hosted by Israel Airports Authority


(IAA), proceedings started with a superb opening cocktail event (13 March) at The Susan Dellal Centre for dance and theatre in Neve Tzedek, Tel Aviv. The State of the Industry address was


delivered by ACI Europe President Olivier Jankovec, who said traffic was the “good part” of our business. Jankovec also revealed +8.5% growth in passengers across European airports in 2017, the best performance since 2004. He said: “Traffic has grown, but revenue


has lagged behind traffic growth. “The main driver for growth has been


low-cost carriers such as Norwegian Air which will put more focus this Summer on transatlantic flights than the likes of


the EU and UK in 2016. This gives us a vastly increased customer base for DF sales. Air travellers represent more than their percentage weight in terms of sales.” A hard-hitting panel discussion featuring


IAA Deputy Director General Commerce Business Development Yoram Shapira; Tel Aviv Ben Gurion International Airport Managing Director Shmuel Zakay; and JR/ Duty Free Chairman Garry Stock also gave delegates food for thought. Shapira said: “We must improve the


Air France.” Another standout presentation on day


one was from European Travel Retail Confederation President and Dufry Director External Affairs Sarah Branquinho. On the subject of Brexit, she commented


that Britain’s departure from the EU offers a significant commercial opportunity.


overall shopping experience so consumers are spending more time in DF environments. “Additionally, we have to make them


realise the flight begins while at the airport.” Stock remarked: “We are going through a


period of intense activity and change. “Airports must be prepared to think out


of the box and be quicker on their feet. The operator also has to respond.


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