FRANCE. Lagardère Travel Retail posted €2,784 million in revenue for the nine months ended 30 September, up +8.2% on a consolidated basis and up +4.9% on a like-for-like basis.
Key influences included a negative foreign exchange effect (-€22 million), primarily from the fall in the Polish Złoty, the Pound Sterling, the Canadian and Australian dollars, but there were also favourable scope effects (€121 million). The latter include:
Effects of disposals (-€278 million), related primarily to disposals of Press Distribution activities in Spain (SGEL), Switzerland (Naville), the USA (Curtis) and Canada (LMPI);
Growth from transactions (+€399 million), mainly linked to the integration of Paradies North American operations and fashion and confectionery stores at New York JFK Airport.
In Q3, revenue amounted to €944 million, an increase of +3.9% on a like-for-like basis (up +6.6% on a consolidated basis). A favourable scope effect linked to acquisitions boosted revenue by €29 million.
Like-for-like travel retail revenues (excluding the Distribution arm, which is being gradually divested) climbed by +5.7% year-on-year in the quarter.
In France, a slight drop in sales (-0.9%) was primarily due to the decline in the duty free and fashion segment related to the effects on tourism from the Paris and Nice terrorist attacks. However, this effect was mitigated by the resilience of the foodservice segment, noted the retailer.
Europe (excluding France) saw strong momentum in revenue (up +11.2%). The growth in traffic and an expanded network led to a sustained increase in revenue in Poland (+24.2%), Italy (+6.7%, with particularly strong performance in foodservice) and the UK (+18.9%) with the latter boosted by the modernisation and extension of the duty free concession at Luton Airport.
There was also strong growth in Romania (+20.3%) thanks to the development of the foodservice business and the impact of higher tobacco prices.
Revenue climbed by +6.9% in North America, boosted by the expansion of the store network and the effect of sales synergies generated by the integration of Paradies.
Asia Pacific showed a +1.8% rise in Q3 revenue with strong performance of fashion stores in China and duty free in Australia and New Zealand, which offset a reduction in the number of stores.
Parent company Lagardère Group noted that the overall business environment remained difficult in Europe, but said that performance was buoyed by Lagardère Travel Retail.
The group noted in a statement: “Travel Retail (excluding Distribution) saw continued growth supported by the development of the store networks and the deployment of new concepts, despite the difficult geopolitical and economic environment. The integration of Paradies is progressing as planned and the level of synergies remains in line with the group’s expectations.”
