Full-Year 2016 Results

15/06/2017

Full-Year 2016 Results Strong rise in Group recurring EBIT(1): up 13.5%(2) to 395 million Free cash flow generation up sharply, at 416 million

2017 Group recurring EBIT growth target(1): between 5% and 8%(2)

Proposed ordinary dividend unchanged at 1.30 per share

Download press release in PDF

Access the webcast

In 2016, the Lagard re group confirmed its growth momentum, boosted by organic growth in Travel Retail of more than 7% and by a strong yearly performance from Lagard re Publishing.

Robust growth in Lagard re s businesses

The Lagard re group recorded revenue of 7,391 million, up 2.5% on a like-for-like basis. This sustained performance was primarily driven by growth at Travel Retail (up 7.1%) and Lagard re Publishing (up 2.5%), confirming the relevance of the Group s strategy and allowing Lagard re to strengthen its leadership while developing its growth drivers.

Sharp rise in Group recurring EBIT

With growth in Group recurring EBIT coming in at 13.5%(2) versus 2015, Lagard re outperformed its initial target of slightly above 10%(2) announced in March 2016.

Group recurring EBIT came in at 395 million versus 378 million in 2015. This improvement reflects a sharp increase in the contribution of Travel Retail coupled with a strong performance from Lagard re Publishing.

Profit before finance costs and tax was 314 million, up from 174 million in 2015, owing mainly to the disposal of a non-operating asset.

Profit - Group share jumped to 175 million from 74 million one year earlier. Adjusted profit(3) - Group share was stable at 238 million versus 240 million in 2015.

Increase in free cash flow generation

Net debt was down 162 million to 1,389 million owing to 25% growth in cash flow from operations before changes in working capital and the disposal of a non-operating asset.

The leverage ratio (net debt/recurring EBITDA(4)) came out at 2.2x at end-2016, sharply lower than the anticipated level announced at the time of the acquisition of Paradies(5), of slightly below 3.0x.

I- REVENUE AND RECURRING EBIT(6)

REVENUE

Revenue totalled 7,391 million, up 2.5% like-for-like and up 2.7% on a consolidated basis. The difference between like-for-like and consolidated figures reflects a 95 million negative foreign exchange effect due mainly to the depreciation of the pound sterling, and a 124 million positive scope impact linked to external growth transactions, partly offset by the impact of disposals in the Press Distribution activities.

GROUP RECURRING EBIT

Group recurring EBIT advanced 4.6% on a consolidated basis to 395 million.

The disposal of Distribution activities (in Spain, Switzerland, the US, Canada and Belgium) represented a 25 million negative scope impact. Changes in exchange rates had a 5 million negative impact.

Stripping out these effects, Group recurring EBIT growth was 13.5%, ahead of the target initially announced in March 2016 ("growth slightly above 10% compared to 2015, at constant exchange rates and excluding any impact from any disposal of Distribution activities").

Lagard re Publishing Revenue

Revenue totalled 2,264 million in 2016, up 2.5% like-for-like and up 2.6% on a consolidated basis.

Business growth in 2016 was driven by the United Kingdom (up 11.0%), lifted by the success of Harry Potter and the Cursed Child in English worldwide (excluding the US and Canada) and Fantastic Beasts, and by the good performance of Partworks (up 5.7%), especially in Japan and Spain.

In France (up 1.5%), the good performance of Education driven by curricular reform was partly offset by an unfavourable comparison effect linked to the success of Ast rix in 2015, and by a less intensive release schedule in General Literature.

In the United States, business was down 4.2% due to a less eventful publishing programme than in 2015.

The Spain/Latin America region was stable (down 0.4%) despite the unfavourable comparison effect (publication of Ast rix in 2015), thanks to ongoing curricular reform in Spain and a one-off export transaction in Latin America.

In 2016, the contribution of e-books to Lagard re Publishing s overall revenue was 8.0% (9.0% in 2015).

Recurring EBIT

At 9.2%, the operating margin improved by 0.2 points, while recurring EBIT increased by 10 million year-on-year to 208 million. The increase results from three factors: profitability gains in the US underpinned by strict cost discipline; a good performance from Partworks in Japan and Spain; and the one-off impact of new titles such as Harry Potter and the Cursed Child and Fantastic Beasts in the UK, which offset the full-year impact of a return to the agency agreement for e-books.

In France, the positive impact of curricular reform helped offset a more subdued performance from Illustrated Books and General Literature over the year.

Lagard re Travel Retail Revenue

2016 revenue for the division totalled 3,695 million, up 5.0% like-for-like and up 5.3% on a consolidated basis.

Despite an unstable geopolitical environment, Lagard re Travel Retail s growth strategy continued to bear fruit, with organic growth in Travel Retail (up 7.1% like-for-like) led by strong performances in North America and Asia-Pacific.

Business in France held firm (up 0.5%), thanks to a good performance in the Travel Essentials and Foodservice segments following the extension and modernisation of the network and to the upturn in the Duty Free segment towards the end of the year. Duty Free benefited from a favourable comparison effect after a weak fourth-quarter 2015 shaped by the Paris terrorist attacks.

EMEA (excluding France) enjoyed strong 10.9% growth, spurred by network development, modernisation of concepts and a dynamic sales policy which helped limit the impact of the terrorist attacks.

Business was up 9.7% in North America thanks to network expansion and sales synergi

LINK:	http://www.lagardere.com/index.php?coe_i_id=363&idpress=7294...
	See more stories from lagard

Most recent headlines

05/01/2027

Worlds first 802.15.4ab-UWB chip verified by Calterah and Rohde & Schwarz to be demoed at CES 2026

Worlds first 802.15.4ab-UWB chip verified by Calterah and Rohde & Schwarz to be ...

01/06/2026

Dolby Sets the New Standard for Premium Entertainment at CES 2026

January 6 2026, 05:30 (PST) Dolby Sets the New Standard for Premium Entertainment at CES 2026 Throughout the week, Dolby brings to life the latest innovatio...

02/05/2026

Dalet Flex LTS Delivers Smarter Search, Faster Editing, and an AI-Ready Foundation for Modern Media

Dalet, a leading technology and service provider for media-rich organizations, t...

01/05/2026

NBCUniversal's Peacock to Be First Streamer to Integrate Dolby's Full Suite of Premium Picture and Sound Innovations

January 5 2026, 18:30 (PST) NBCUniversal's Peacock to Be First Streamer to ...

01/04/2026

DOLBY AND DOUYIN EMPOWER THE NEXT GENERATON OF CREATORS WITH DOLBY VISION

January 4 2026, 18:00 (PST) DOLBY AND DOUYIN EMPOWER THE NEXT GENERATON OF CREATORS WITH DOLBY VISION Douyin Users Can Now Create And Share Videos With Stun...

18/03/2026

Net Insight Names Larissa GrnerMeeus CPO

Newly named chief product officer (CPO), Larissa G rner Meeus will return to Net Insight on May 4. Larissa G rner Meeus will become CPO of Net Insight on May 4...

18/03/2026

SVG Europe's The Football Summit 2026: Select Sessions Now Available to Watch on SVG PLAY

SVG Europe's The Football Summit 2026 explored how the sports broadcasting i...

18/03/2026

SVG's SportsTech@NABShow Blog Goes Live as Countdown to Vegas Heats Up

The 2026 NAB Show kicks off one month from today and SVG is once again set to cover the show from every angle. SVG's SportsTech@NAB Show Blog is now live - ...

18/03/2026

The Premiere of Dead Lover Showcases Grave Robbing and Sex With a Giant Finger

(L-R) The cast and crew of Dead Lover at The Ray Theater for its premiere at the 2025 Sundance Film Festival. (Photo by Robin Marshall/Shutterstock for Sundan...

18/03/2026

Music Row Piano from Wiltone Productions

Yamaha C7 captured in Nashville Wiltone Productions have announced the release of Music Row Piano, a deeply sampled Yamaha C7 piano library that's been ...

18/03/2026

Techivation introduce T-Warmer Mk2

Bass-enhancement plug-in upgraded Along with a steady stream of new releases, Techivation have recently been revisiting some of the older plug-ins in their ...

18/03/2026

Tonal Balance Control 3 from iZotope

Mix-reference plug-in overhauled iZotope's powerful mix-referencing plug-in has just reached its third major version, and now boasts a new capture proce...

18/03/2026

Toontrack Transistor Organ EKX

Latest EZKeys 2 expansion arrives Toontrack's staggering collection of EZKeys 2 expansions has grown once again, and the latest instalment delivers a on...

18/03/2026

Jess Ho explores the politics of food in new SBS Audio podcast For The Culture

Jess Ho explores the politics of food in new SBS Audio podcast For The Culture 18 March, 2026 Media releases New SBS Audio podcast For The Culture, hosted ...

18/03/2026

Future-ready broadcasts with ATSC 3.0 and enhanced services from Rohde & Schwarz at NAB 2026

Future-ready broadcasts with ATSC 3.0 and enhanced services from Rohde & Schwarz...

18/03/2026

LCTWS 2026

London Calling - When The Industry Convened to Help Streaming Find its MoJo In this blog, Laura Rognoni reflects on key discussions from the Connected TV World...

18/03/2026

SMPTE Unveils 2026 NAB Show Educational Presentations

SMPTE Unveils 2026 NAB Show Educational Presentations Brie Clayton March 18, 2026 0 Comments SMPTE , the home of media professionals, technologists, a...

18/03/2026

Auditel Ad Campaign Shot on Blackmagic PYXIS 12K

Auditel Ad Campaign Shot on Blackmagic PYXIS 12K Brie Clayton March 18, 2026 0 Comments LED wall virtual production blends 12K open gate acquisition w...

18/03/2026