Shares of Lagardere took a hit as the company revealed a decrease in net profit for 2023 that fell short of consensus expectations, despite a significant increase in revenue from its travel-retail operations.
Share Performance and Recent Decline
At 0915 GMT on Wednesday, shares were down 3.2% at EUR19.90, with a more significant drop earlier in the day. However, shares have still managed to maintain an 8.3% increase since the start of 2024.
Financial Results for 2023
The French publishing and travel-retail group, primarily owned by Vivendi, disclosed a net profit of 144 million euros for 2023, down from EUR161 million in 2022. This figure fell short of analyst expectations of EUR245.1 million.
Revenue for the company climbed to EUR8.08 billion from EUR6.93 billion, driven mainly by growth in its travel-retail division. Recurring earnings before interest and taxes saw a substantial 82% increase to EUR520 million.
Analysts' Predictions vs. Actual Results
Analysts had previously predicted revenue to be at EUR7.93 billion and an adjusted operating profit of EUR532.4 million, according to the Visible Alpha consensus.
Targets for 2024
Looking ahead to 2024, Lagardere aims to mirror its 2023 performance for its publishing division while eyeing potential growth in revenue and profitability for its travel-retail segment.
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