In addition to strong trading in France, the Paris-based travel kiosk and food service operator also reported strong sales in Italy, Spain, the United Kingdom and Romania.
Sales growth in the third quarter was primarily driven by increased attendance during the Paris Olympics. Photo credit: Xavier Prayer
Lagardère Travel Retail delivered record quarterly profits for the three months to 30 September 2024, driven by strong trading in France.
The Paris-based travel concession and food service operator saw sales rise 15% year-on-year to €1.6 billion ($1.7 million) in the quarter, with underlying sales up 12% .
Lagardère Travel Retail said in a press release that third-quarter sales growth was primarily driven by increased footfall in France during the Paris Olympics.
The business also reported “exceptional results” in Italy, Spain and the UK during the quarter, highlighting that network expansion in Romania also boosted overall EMEA sales. European sales accounted for 70% of Lagardère Travel Retail’s total revenue in the third quarter.
Solid sales momentum in Canada and Latin America boosted Lagardère Travel Retail’s Americas sales in the third quarter, offsetting a slower-than-expected recovery in U.S. airport transactions.
However, the company cited “low activity” in East Asia and continued decline in China as the main factors behind the decline in revenue in the Asia Pacific and Greater China segments, which currently account for 4% and 1% of the company’s sales. “economic slowdown.”
Lagardère Travel Retail’s nine-month sales were 4.3 billion euros ($4.7 billion), 17% higher than the same period in 2023.
Foodservice currently accounts for 29% of Lagardère Travel Retail’s revenue, behind duty free and fashion (37%) and travel essentials (34%). The company operates more than 1,600 food and beverage units in 29 markets, including its own 1Minute Café and So! Coffee brands and licensed stores for Costa Coffee, Godiva Café, Paul, Pret A Manger and Starbucks.
The travel concession and food service operator currently accounts for 66% of parent company Lagardère Group’s total sales. The group’s publishing division’s third-quarter sales fell 0.2% to 767 million euros ($832 million), but in the first nine months of 2024 it was still 2023 sales. It is 3% higher than that of the previous year.
