February 15 2023  |  Retailers

Lagardère Group delivers "excellent results" 2022, higher profits than 2019

By Jane Hobson

Lagardère Group has announced today in a breaking new release its 2022 financial results, reporting "excellent" profitability, higher than in 2019.

Consolidated revenue increased "sharply" by 28.3%1 to €6,929 million (US$7,401 million), and recurring EBIT at an impressive €438 million (US$468 million) (versus €249 million [US$266 million] in 2021), said the press release.

The Group attributes the success to its two core businesses, Lagardère Publishing and Lagardère Travel Retail.

Lagardère Publishing
Lagardère Publishing continued strong trading (down 1.9%1) after an exceptional performance in 2021 and amidst a global market downturn. Recurring EBIT at €302 million (US$322 million) and an operating margin of 11% in line with the outlook and above historical levels.

Another accomplishment listed is the acquisition of Paperblanks and publishers Welbeck Publishing Group and Bragelonne.

Lagardère Travel Retail
The press release notes sharp 65.4%1 growth driven by EMEA and North America operations for Lagardère Travel Retail. There was a swing back to profitability, with recurring EBIT of €136 million (US$145 million) and "exceptionally low" flow through of 4.9%.

And 2022 marked the the acquisition of Creative Table Holdings Ltd, a Foodservice operator at Dubai airport. Lagardère Travel Retail was also awarded the tender to operate Duty Free & Fashion stores in Paris airports, and its corporate cost reduction target was achieved (€35 million [US$37 million) reduction versus 2019). The release also highlights Lagardère Travel Retail's improvement in the leverage ratio (net debt/recurring EBITDA) to 2.9x (3.6x at end-2021) and proposed ordinary dividend of €1.30 (US$1.4) per share.

Arnaud Lagardère, Chairman and Chief Executive Officer of Lagardère SA, said, "The Lagardère Group delivered a historic performance in 2022, reporting an improvement in all of its main financial indicators and confirming the relevance of the strategic refocusing carried out since 2012. Lagardère Travel Retail benefited from the rebound in tourist air traffic in Europe and North America, particularly in its Duty Free segment. After an exceptional performance in 2021, Lagardère Publishing managed to maintain a very high level of revenue, driven by the success of bestsellers in its various publishing houses. The Group’s Other Activities returned to growth, while Lagardère News held firm, reinventing itself in a changing market. Thanks to the hard work of all of our teams, we outperformed 2019 profitability and significantly improved our leverage ratio compared to 2021."

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