Release Date: July 23, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Lagardere SA (LGDDF, Financial) achieved its highest historical revenue level at nearly EUR4.2 billion, up 13% as reported and 10.1% on a like-for-like basis.
- The company reported a new record in recurring EBIT with EUR212 million, an increase of EUR71 million compared to the same period last year.
- Free cash flow improved significantly, increasing by EUR123 million compared to H1 2023.
- Lagardere Publishing revenue grew by 4.5% on a like-for-like basis, with recurring EBIT up by EUR48 million.
- Lagardere Travel Retail reached a new peak in revenues, increasing by 13.5% on a like-for-like basis, with recurring EBIT hitting a record at EUR109 million.
Negative Points
- Net debt has slightly increased since last year due to investments in H2 2023.
- The dividend payment was reduced to EUR0.65 per share for 2023 compared to EUR1.3 last year.
- The press activity experienced a decline due to decreasing advertising revenue in a competitive market.
- The growth in the Americas region for Travel Retail was lower than in 2023, at roughly 7%.
- The unfavorable economic climate in China negatively impacted North Asia activities.
Q & A Highlights
Q: Could you provide an update on the cost trends for Lagardère Publishing in H2 2024 and 2025, particularly regarding the evolution of paper costs?
A: Stéphanine Ferran, Deputy CEO of Hachette Livre Group, explained that they started the year with a decrease in paper costs, but expect an increase in H2. However, the impact should be limited due to existing paper stock and a consolidated purchasing approach. Overall, a slight decrease in paper costs is expected in 2024 compared to 2023.
Q: Has the investment project in the distribution center been abandoned?
A: Stéphanine Ferran confirmed that the original Polaris program was abandoned. They are now ready to embark on a new approach, potentially renovating the current logistics scheme and updating the information system progressively. A new vision is expected by the end of Q1 next year.
Q: Is the French Partnership Limited commodity running the Lagardère Radio activities still valid considering Vivendi's split project?
A: Arnaud Lagardère, Chairman & CEO, stated that the limited partnership of Europe 1 is valid until 2027 and will continue as agreed with Arcom and approved by the Board of Lagardère, including Vivendi members.
Q: Are there any further questions from the analysts?
A: Emmanuel Rapin, Head of Financing & IR, confirmed that there were no more questions from the analysts, either on screen or written.
Q: What are the next steps following the earnings call?
A: Arnaud Lagardère concluded by thanking participants and stating that the focus will now shift to the second half of the year, with an emphasis on maintaining performance and achieving targets.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
