France, Romania, the UK and Italy were cited by the Paris-based travel retail and foodservice operator as key performing markets during the first half of 2024
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A Godiva Café in Hong Kong International Airport | Photo credit: Lagardère Travel Retail
Lagardère Travel Retail has credited increased airport footfall across Europe as the main driver of robust revenues and record recurring EBIT in the six months ending 30 June 2024.
The Paris-based travel concession and foodservice operator achieved 18% year-on-year revenue growth to reach €2.7bn ($2.9bn), with trade particularly strong in France, Romania, the UK and Italy. Lagardère Travel Retail’s total recurring EBIT grew 17% to a record €109m ($118m).
The group’s Europe, Middle East and Africa (EMEA) reporting segment, which excludes Lagardère’s home French market, currently contributes 49% of the travel operator’s total sales and achieved 22% year-on-year revenue growth during the period.
In France, Lagardère Travel Retail credited its Extime Duty Free Paris joint venture with ADP Group as strongly contributing to an 18% year-on-year rise in revenue. The arrangement sees the two companies operate 140 beauty, foodservice and fashion outlets at Paris-Charles de Gaulle and Paris-Orly airports.
Sales in Asia Pacific fell 17% during the quarter as Lagardère Travel Retail reduced its activity in China amid ‘unfavourable economic conditions’.
“In the first half of 2024, the Lagardère Group continued its uninterrupted growth trajectory, driven by improved performances across all its businesses. Lagardère Travel Retail continued on the growth path, driven notably by growth momentum in air traffic in France and the EMEA region, with recurring EBIT also reaching record levels,” said Arnaud Lagardère, Chairman and CEO, Lagardère Group.
Foodservice currently contributes 29% of Lagardère Travel Retail’s revenue, behind Duty Free & Fashion (37%) and Travel Essentials (34%). However, year-on-year revenue growth in the F&B segment was significantly higher in the reporting period at 32%, compared to 14% for Duty Free & Fashion and 11% for Travel Essentials.
The business operates more than 1,600 food and beverage units across 29 markets, including its proprietary 1Minute Café and So! Coffee brands alongside licensed Costa Coffee, Godiva Café, Paul, Pret A Manger and Starbucks stores.
In February 2023, Lagardère Travel Retail became the exclusive global travel location franchisee for boutique café group EL&N. The travel concession operator is set to launch the boutique café brand in Cambodia in 2025 as part of a new 12-year contract at Techo International Airport, which is currently under construction and due to open in 2025.
Lagardère Travel Retail contributed 65% of parent company Lagardère Group’s €4.2bn ($4.5bn) half-year revenues. The French business group also operates Lagardère Publishing, which achieved 4.5% year-on-year sales growth to €1.3bn ($1.4bn), Lagardère Live Entertainment and Lagardère Radio.