FRANCE/INTERNATIONAL. Lagardère Travel Retail has posted a +8.2% year-on-year revenue increase in the first quarter on a like-for-like basis, to €763 million.
The company pointed to continued network expansion, the success of sales initiatives (including modernised points of sale), synergies relating to the consolidation of Paradies Lagardère and the growth in air traffic, as factors affecting the result.
On a consolidated basis, revenue for the segment was down -10.5%. This was the result of a positive foreign exchange impact of €13 million, primarily linked to the appreciation of the US, Australian, New Zealand and Canadian Dollars and a negative €159 million scope impact due mainly to the disposal of Distribution operations in Belgium, Hungary, Spain and Canada.
The Travel Retail division was also boosted by the sharp rise in revenue relating to Russian passengers, the company noted. This performance was achieved despite an unfavourable basis for comparison (one less trading day in the quarter) owing to the fact that 2016 was a leap year, it said.
In France, like-for-like revenue was up +8.5%, led primarily by the Duty Free segment boosted by both a favourable basis for comparison and network expansion, despite the adverse impact of the introduction of plain packaging in the tobacco segment, Lagardère said.
The EMEA region (excluding France) reported robust +11.5% like-for-like revenue growth, buoyed by points of sale opened at Rome airport’s new Avancorpo terminal in Italy (up +13.0%), modernised points of sale at Amsterdam’s Schiphol airport in the Netherlands (+26.3%), the growth in traffic and network expansion in Poland (+16.8%) and the takeover of Duty Free stores in the Czech Republic (+16.5%).
The UK also delivered strong growth (+22.9%), powered by the positive impact of the revamped Luton airport and the depreciation of the Pound in the wake of the Brexit vote.
North America reported further growth, up +7.4%, driven by the impact of sales synergies and new points of sale opened in Tampa and Phoenix.
Business was mixed in the Asia Pacific region (+1.2%), with Asia up +8.6% driven by +19.2% growth in China, while, in the Pacific region, traffic growth in New Zealand partly offset an unfavourable network impact in Australia.
The Lagardère group posted overall first quarter revenue of €1,532 million, up +6.2% on a like-for-like basis and down -3.4% on a consolidated basis. The difference reflects a positive €6 million foreign exchange effect and a negative €147 million scope impact, the company said.
