Lagardere (MMB) H1 2025 earnings summary

Executive summary

• First-half 2025 revenue rose to €4,351M, up 3.8–4% year-over-year, driven by strong Publishing and Travel Retail, with contributions from acquisitions and new concessions.

• Recurring EBIT reached a record €225M, up 5.8–6% year-over-year, reflecting solid segment performance and cost control.

• Net profit – Group share improved to €24M from a €20M loss, with total net profit up to €47M.

• Net debt reduced to below €2B, with leverage ratio at 2.5x, supported by strong cash generation and refinancing.

• All divisions contributed to growth, with notable performance in Travel Retail and Publishing.

Financial highlights

• Revenue grew by €158M year-over-year, with positive scope effects from Sterling Publishing, 999 Games, and Schiphol Duty Free.

• Adjusted EBITA/recurring EBIT up to €225M; Publishing margin at 7.9–8%, Travel Retail at 4.1%.

• Adjusted profit – Group share doubled to €72M from €36M.

• Free cash flow before working capital changes was €146–161M; after working capital, €14M, down from €35M.

• Net financial charges improved to €63M from €69M.

Outlook and guidance

• Management expects continued robust performance, leveraging business complementarity and strategic investments.

• Focus remains on gradual deleveraging, maximizing shareholder value, and maintaining flexibility for growth.

• Liquidity remains strong with €1,096M available, including €700M undrawn credit.

• Travel Retail sales projected to grow by high single digits in H2.

• USD weakness estimated to reduce annual revenue by €100M and EBITDA by €10M, but mitigated by debt hedging.