The travel concession operator credited a sharp rebound in EMEA airport passenger traffic and foodservice acquisitions as driving its €5bn ($5.4bn) sales for 2023
Lagardère Travel Retail opened the first Costa Coffee store in Belgium last month | Photo credit: Lagardère Travel Retail
Lagardère Travel Retail’s expanded Costa Coffee franchise business has been highlighted as a key driver of its strong 2023 sales.
The Paris-based travel concession and foodservice operator achieved 28% year-on-year sales growth to reach €5bn ($5.4bn) in the 12 months ending 31 December 2023. The business also posted a record €245m ($265m) operating profit – 80% higher than the previous year.
Lagardère Travel Retail operates more than 1,600 foodservice units across 29 markets, including its own 1Minute Café and So! Coffee brands licensed Costa Coffee, EL&N, Paul, Pret A Manger and Starbucks stores.
In a press release, parent company Lagardère Group said Lagardère Travel Retail’s ‘historic year’ was led by a sharp rebound in airport passenger traffic across Europe, the Middle East and Africa (EMEA).
Franchised Costa Coffee stores in Europe were also a key driver of growth. In February 2023, Lagardère Travel Retail acquired the master franchise rights for UK-based coffee chain Costa Coffee in Poland and Latvia, which comprises approximately 140 stores across the two countries.
In February this year, the operator also opened Belgium’s first standalone Costa Coffee store at Liège Guillemins rail station
Lagardère Group said travel segment revenue growth was bolstered by the acquisition of global catering company Marché international in March 2023 and North American airport food and beverage operator Tastes on the Fly in November 2023.
Foodservice brands currently contribute 27% of Lagardère Travel Retail’s total sales – up 4% on 2022. Duty Free & Fashion make up 38% and Travel Essentials 35%.
Lagardère Travel Retail contributed 62% of parent company Lagardère Group’s €8bn ($8.7bn) 2023 revenues. Lagardère Publishing posted sales of €2.8bn ($3bn) – 2.2% higher than 2022.