FRANCE. Lagardère Travel Retail sales reached €694 million in the first three months of 2022, up by +103.4% on a reported basis and +96.8% like-for-like compared to the first quarter last year. Revenue remained -28.7% below first-quarter 2019 figures.
The difference between reported and like-for-like revenue is attributable to a €23 million positive currency effect due to movements in the US Dollar and Chinese Yuan.
The company attributed the sharp sales rise to “recovery in European passenger traffic and continued momentum in North America”.
In commentary, Lagardère Group said: “This highly positive performance reflects the business rebound and was achieved despite the impact of the Omicron variant of Covid-19. The first few months of 2022 have confirmed the recovery trend observed at the end of 2021, although business is yet to spring back fully to 2019 levels.”
In France, revenue for the division leapt by +87.7% due to the widespread easing of the health restrictions that were in place during Q1 2021.
The EMEA region (excluding France) posted growth of +129.3% with revenue virtually tripling in Western Europe (up +298.1% excluding France) thanks to the easing of health restrictions, and sustained growth in the Middle East and Africa (up by +135.3% and +86.4%, respectively). Revenue growth in Eastern Europe was more moderate, at +60.9%, due to a stronger first quarter of 2021 and less favourable comparison.
Performance in North America confirmed the momentum that began in the second quarter of 2021, with growth of +110.1% driven by the US, where business was up +102.8% (down -9.9% on first-quarter 2019). Revenue also recovered strongly in Canada, with growth of +398.2%.
Asia Pacific revenue growth came in at a more modest +16.2%. North Asia (Mainland China, Hong Kong and Japan) saw sales grow by +15.9%, lifted by network expansion despite fresh health-related travel restrictions in place. The Pacific region recorded growth of +30.2% after the lifting of health restrictions since the end of February in Australia.
Commenting on the outlook, the group stated: “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%, assuming higher business levels than in 2021.”
