FRANCE. Lagardère Travel Retail revenue reached €804 million in Q1 2020, down by -13.5% on a consolidated basis and -18.0% on a like-for-like basis. Revenue slipped by -1.3% in January and February before falling -54% in March. Parent Lagardère Group said it expects travel retail division revenue to fall by -90% year-on-year in April.
“April 2020 is the first month in which the impacts of the measures taken by governments to halt the spread of the COVID-19 pandemic will be felt across all of the Lagardère group’s businesses and over the entire month,” it said.
In Q1, the difference between consolidated and like-for-like data was due to a €6 million positive foreign exchange effect (related to the appreciation of the US Dollar) and to a €35 million positive scope effect, due mainly to the acquisition of International Duty Free in Belgium.
In its Q1 results statement, the group said: “Over the first quarter of 2020, the group experienced a gradual deterioration in its businesses as the COVID-19 pandemic took hold and governments across the globe introduced restrictions. Owing to its exposure to the Asia Pacific region, the Travel Retail business was the first to feel the impact and was the hardest hit.
“Revenue growth for Lagardère Travel Retail initially slowed to -1.3% over January-February 2020, with the epidemic mainly affecting the Asia Pacific region, before falling -54% in March as the virus gradually spread across Europe and North America.”
On a like-for-like basis, the business in France saw a -20.7% decline in Q1, caused by strikes which continued into early 2020, and then by the impact of the COVID-19 pandemic, and the shutdown of almost the entire store network.
The EMEA region (excluding France) retreated -14.7%, affected by travel restrictions and border closures introduced from March. Revenue was also down in North America, contracting -15.2%, though lockdowns and travel restrictions were introduced later than in the ASPAC and EMEA regions. Asia Pacific was the hardest hit region with revenue down -28%, the biggest regional decline over the quarter.
Lagardère Group quarterly revenue hit €1,361 million, down by -12.5% on a like-for-like basis.
Lagardère Group estimated (taking corrective measures including major cost savings into account) that the adverse impact on full-year 2020 recurring EBIT of Lagardère Travel Retail could be -20% to -25% of the decrease in its revenue.
