First-Half 2020 Results
Corporate & other activities, Finance
Paris, 30 July 2020, 5:35 p.m.
Lagardère holds firm due on its diversified business base in a global economic environment that has been destabilised by the impacts of the Covid-19 pandemic
Group revenue down 38%(1) to €2,088 million; negative Group recurring EBIT
of €218 million
Resilient performance by Lagardère Publishing: revenue retreating only 8%(1) to €971 million; recurring EBIT of €27 million
Lagardère Travel Retail: revenue down 55%(1) to €947 million and negative recurring EBIT of €209 million due to the sharp contraction in global air traffic
Negative free cash flow (excluding changes in working capital) of €242 million, partially offset by the corrective measures put in place at the start of the year
Amid the unprecedented crisis created by the Covid-19 pandemic, in first-half 2020 the Lagardère group demonstrated the pertinence of its strategy focused on two activities with different business models: Lagardère Publishing and Lagardère Travel Retail.
Drawing on its unique profile and strategic choices (business diversification, presence in various language markets, digital expansion and well-managed distribution capabilities), Lagardère Publishing proved extremely resilient in the second quarter, as illustrated by its exceptional revenue performance in June, which significantly outpaced the first-half 2019 figure.
Lagardère Travel Retail took a severe hit due to its significant exposure to the airline industry. The division was quick to take action to ensure the health and safety of its employees, customers and partners, while at the same time organising the temporary closure of its network in close cooperation with airports, and systematically reducing costs. Thanks to Lagardère Travel Retail’s international presence, combined with its deep local anchoring, the business was able to restart operations on a “bespoke” basis as from the second quarter, in step with the reopening of railway stations and airports. Short-term uncertainties as to when air travel will resume do not call into question the division’s strong business model or leadership, which have been enhanced by the commitment shown by its teams.
To navigate this extraordinary year, the Group can also count on robust financial liquidity.
(1) Like-for-like basis.
Created in 1992, Lagardère is an international group with operations in more than 40 countries worldwide. It employs over 30,000 people and generated revenue of €7,211 million in 2019.
In 2018, the Group launched its strategic refocusing around two priority divisions: Lagardère Publishing (Book and e-Publishing, Mobile and Board games) and Lagardère Travel Retail (Travel Essentials, Duty Free & Fashion, Foodservice).
The Group's operating assets also include Lagardère News and Lagardère Live Entertainment.
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 Universal Registration Document filed in French by Lagardère SCA with the 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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