First-Half 2019 Results
Corporate & other activities, Finance
Paris, July 25, 2019
Sustained growth in revenue, up 6.7% like-for-like(1) and in Group recurring EBIT(1), up €14 million to €153 million
Lagardère confirms its 2019 Group recurring EBIT growth target(1) of between 4% and 6%, based on the target scope
Strategic refocusing in active progress
The Lagardère group maintained solid growth momentum in first-half 2019. Robust increases in revenue and recurring EBIT were mainly driven by growth at Lagardère Travel Retail as well as by a good performance from Lagardère Sports and Entertainment, thanks to a favourable sporting calendar.
The Group is actively pressing ahead with its strategic refocusing, shaped in the period by in particular the removal of the suspensive conditions for the disposal of the TV Channels and the closing of the Mezzo sale at Lagardère Active. The reinvestment of disposal proceeds is continuing apace, with the signature of an agreement to acquire International Duty Free (IDF), Belgium’s leading Travel Retail operator.
Continued growth momentum
- The Lagardère group reported revenue of €3,612 million in first-half 2019, up 6.7% like-for-like(1). This growth momentum was powered by a solid performance at Lagardère Travel Retail, which delivered a 6.5% increase in revenue, and by growth at Lagardère Publishing. Lagardère Sports and Entertainment also made a positive contribution to revenue growth, thanks to a favourable calendar effect.
As expected, Group recurring EBIT was lifted by a busy sporting calendar
- Group recurring EBIT came in at €153 million for first-half 2019 versus €139 million one year earlier, owing mainly to business growth at Lagardère Travel Retail as well as a busy sporting calendar for Lagardère Sports and Entertainment, which more than offset the impact disposals at Lagardère Active.
- Profit before finance costs and tax was €158 million for the period, compared with €269 million in first-half 2018 which had included the capital gain on the sale of the office building in the eighth arrondissement of Paris.
- Adjusted profit – Group share increased to €63 million for the first six months of the year, from €59 million one year earlier.
Solid financial position
At 30 June 2019, net debt stood at €1,590 million. The leverage ratio (net debt(1)/recurring EBITDA(1)) remained stable year on year, at 2.3.
(1) Alternative performance measure. See the glossary at the end of this press release.
Until recently, the Lagardère group was structured into four business divisions: Lagardère Publishing, Lagardère Travel Retail, Lagardère Sports and Entertainment and Lagardère Active.
In 2018, the Group launched its strategic refocusing around two priority divisions: Lagardère Publishing and Lagardère Travel Retail.
Lagardère shares are listed on Euronext Paris.
Some of the statements contained in this document are not historical facts but rather are statements of future expectations and other forward-looking statements that are based on management's beliefs. These statements reflect such views and assumptions prevailing as of the date of the statements and involve known and unknown risks and uncertainties that could cause future results, performance or future events to differ materially from those expressed or implied in such statements.
Please refer to the most recent Reference Document (Document de référence) filed by Lagardère SCA with the French Autorité des marchés financiers for additional information in relation to such factors, risks and uncertainties.
Lagardère SCA has no intention and is under no obligation to update or review the forward-looking statements referred to above. Consequently Lagardère SCA accepts no liability for any consequences arising from the use of any of the above statements.
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