The Paris-based travel concession operator benefitted from increased air travel globally, notably from China and the US, alongside a recent franchise deal with Costa Coffee
A So! Coffee kiosk at Lille-Flandres train station | Photo credit: Lagardère Travel Retail
Lagardère Travel Retail has credited strong international air traffic in the first six months of 2023 for elevating its half-year revenues.
The Paris-based travel retailer, which operates more than 1,100 foodservice outlets across 130 airports and 157 train stations in 25 countries, achieved 19% like-for-like sales growth to reach €2.3bn ($2.6bn) in the six months ended 30 June 2023.
Alongside licensed Costa Coffee, Pret A Manger and Starbucks stores Lagardère Travel Retail also operates its own brand coffee chains So! Coffee and 1 Minute Café, which have 64 and 63 outlets respectively.
Lagardère Travel Retail reported revenues reaching or exceeding pre-pandemic levels in most regions, with Europe, the Middle East and Africa (EMEA) contributing 64% of group sales during the period.
The business achieved robust growth in France, which contributed 17% of total revenues, alongside ‘particularly sharp performances’ in Italy and Belgium.
Large European airports benefitted from an uptick in international passenger numbers, primarily led by Chinese travellers, Lagardère Travel Retail added.
North America continued to perform strongly, led by a notable recovery in Canada and increased domestic travel in the US, while the reopening of international borders in China contributed to a broader recovery in Asia.
Acquisitions and new franchise deals also boosted Lagardère’s sales.
In February 2023 the business purchased German multi-brand catering and foodservice provider Marché International, before acquiring master franchise rights for Costa Coffee’s 142 stores in Poland and Latvia.
The French travel retailer has also been appointed by boutique café chain EL&N as its exclusive franchisee for travel locations.
Lagardère Travel Retail contributed 63% of parent company Lagardère Group’s €3.7bn ($4.1bn) half-year sales. Lagardère Publishing, the group’s other division, achieved €1.2bn ($1.4bn) revenues during the period.