Lagardere (MMB) H1 2024 earnings summary

Executive summary

• Revenue reached €4,193 million in H1 2024, up 13.3% reported and 10.1% like-for-like year-over-year, marking a historic high.

• Recurring EBIT/operating profit hit €212 million, up €71 million from H1 2023, with free cash flow improving to €35 million from -€88 million.

• Both Publishing and Travel Retail divisions delivered robust growth and profitability, with strong performances in the UK, US, EMEA, and North America.

• Adjusted profit attributable to owners rose to €36 million from €24 million year-over-year.

• Net profit for the period was €2 million, down from €61 million, impacted by higher finance costs and non-recurring items.

Financial highlights

• Operating margin increased to 5.1% from 3.8% in H1 2023.

• Net debt increased to €2,255 million at June 30, 2024, compared to €2,043 million at year-end 2023.

• Free cash flow before changes in working capital was €148 million, up from €76 million in H1 2023.

• Dividend for 2023 set at €0.65 per share, down from €1.3 last year.

• CapEx reached €125 million, mainly in Travel Retail.

Outlook and guidance

• Confident in maintaining high results despite macroeconomic and geopolitical uncertainty.

• Publishing expected to perform similarly to last year, with cost pressures managed.

• Travel Retail anticipates further revenue and profitability growth, supported by global air traffic and optimization initiatives.

• Liquidity remains strong with €1,145 million available at 30 June 2024.