The global travel retailer, which acquired the master franchise rights for Costa Coffee in Poland and Latvia during the period, performed strongly across Europe, North America and Asia Pacific, achieving triple-digit sales growth in Italy and Canada
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Lagardère Travel Retail manages several licensed foodservice brands alongside its So! Coffee café chain | Photo credit: Lagardère Travel Retail
Lagardère Travel Retail has reported ‘remarkable’ revenue growth in its first quarter of 2023, with the business segment contributing more than 62% of Lagardère group’s sales during the three months ended 31 March 2023.
Lagardère Travel Retail achieved 44% sales growth during the period to reach €1bn ($1.1bn), driven by increased international air travel and the post-pandemic recovery of the North Asian market.
The Paris-based travel retailer currently operates more than 5,000 stores within the foodservice, duty free and travel accessory industries across 42 countries globally. It manages licensed foodservice brands, including Starbucks, Pret A Manger, Paul and McDonald’s, alongside its own So! Coffee café chain.
The travel retailer’s turnover increased 41% in its domestic French market while its wider EMEA segment achieved 54% sales growth, led by Italy (116%), Belgium (72%), Poland (55%) and Romania (35%).
In February 2023 Lagardère Travel Retail announced the acquisition of master franchise rights for UK-based Costa Coffee in Poland and Latvia, where the coffee chain currently has more than 140 stores.
In the same month, Lagardère Travel Retail was appointed exclusive franchisee for travel locations for EL&N as the UK-based boutique café group seeks outlet growth within the travel retail sector.
Lagardère Travel Retail also reported strong performances in North America, with the Canadian market contributing sales growth of 114%, and Asia Pacific, with activity in North Asia growing 56% following the end of the zero-Covid policy in China at the end of 2022 and the gradual reopening of borders.
“Our turnover at the beginning of the year confirms the remarkable dynamics of the Group, which recorded growth of 24.4% in the first quarter. The momentum at the start of the year confirms our strategy, as the Lagardère group benefits more than ever from the strengths of its model,” says Arnaud Lagardère, CEO, Lagardère Group.
Paris-based Lagardère Group achieved 24% total sales growth to reach €1.7bn ($1.8bn). Alongside Lagardère Travel Retail, the group also operates publishing and news divisions, which contributed €570m ($625m) and €59m ($65m) in sales respectively.