FRANCE/INTERNATIONAL. Lagardère Travel Retail posted first-half revenue of €831 million, down by -12.3% year-on-year on a reported basis and -9.2% like-for-like, as parent Lagardère Group reported interim results today.
The difference between reported and like-for-like revenue was attributable to a €29 million negative currency effect. After a like-for-like decrease of -56.1% in the first quarter, Lagardère Travel Retail posted growth of +253% in the second quarter as lockdown eased in key markets.
On a like-for-like basis, in France Lagardère Travel Retail recorded a -22% decline in sales, due to travel restrictions that remained in place in the first half of 2021 and lacklustre international air traffic. The EMEA region (excluding France) was down -28.5%, due to travel restrictions. Markets with strong domestic travel networks, especially at rail stations (Romania, Czech Republic, Bulgaria) were less affected.
North America recorded revenue growth of +14.9% for the first half, with the performance driven by the sustained recovery of domestic flights in the US from Q2. Asia Pacific revenue climbed +24.8%. The Pacific region saw a sharp decline in sales due to border closures, while China recorded revenue growth of +90%, driven by network expansion and the favourable comparison basis with Q1 2020.
Lagardère Travel Retail reported a negative €96 million in recurring EBIT, an improvement of €113 million on H1 2020. This represents a flow-through ratio (the impact of the decrease in revenue on recurring EBIT) of 12.2% compared to 2019 which the company said reflected “strong cost discipline” over the period.
Costs were slashed by €999 million in H1 2021 compared to H1 2019, including a €320 million decrease in fixed costs – mainly through renegotiating terms on concessions, adapting point-of-sale operations in line with air traffic levels, adjusting payroll costs and cutting other general overhead costs.
Group revenue hit €2,076 million, up by +5% on a like-for-like basis. The group reported a loss before finance costs and tax of €117 million in H1 2021 compared to a loss of €397 million in H1 2020, with an overall loss attributable to the group of €171 million.
