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, with record recurring EBIT of €212 million, a €71 million increase from H1 2023.

• Free cash flow improved to €35 million from a negative €88 million in H1 2023.

• 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 was €36 million, up from €24 million in H1 2023.

• Major refinancing and management changes were completed, including the reappointment of Arnaud Lagardère as CEO and appointment of Grégoire Castaing as Deputy CEO for Finance.

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, reflecting refinancing and investment activity.

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

• Cash flow from operations before working capital changes was €293 million, up from €207 million.

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

Outlook and guidance

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

• Publishing expected to maintain 2023-level performance despite market and cost pressures.

• 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 June 30, 2024.