Lagardère: Suspension of Market Guidance & Change in the Dividend Proposed to the General Meeting of 5 May 2020, in Light o...
March 25 2020 - 2:30AM
Business Wire
Regulatory News:
LAGARDERE SCA (Paris:MMB):
Update on the impacts of Covid-19
At the time of the publication of the full-year 2019 results on
27 February 2020, the impacts of the Covid-19 epidemic were mainly
being felt at Lagardère Travel Retail, and specifically in the
Asia-Pacific zone and international travel hubs. At that time, the
Group issued a 2020 recurring EBIT growth target of between 4% and
6% at constant exchange rates, excluding the acquisition of IDF and
the effect of the Covid-19 epidemic, estimating the adverse impact
on recurring EBIT in the first quarter of 2020 (before the impact
of action plans) to be in the region of €20 million.
The effects of the epidemic have since extended to Lagardère
Travel Retail’s other operations and, to a lesser extent, to the
rest of the Group’s activities, given both the rapid spread of the
virus and the government lockdowns and closures that have been
ordered in many of the countries in which the Group has
operations.
As stated in its initial response, the Group is working
tirelessly to protect employees, customers and partners, and is
also continuing to implement significant measures to mitigate the
financial impacts in the following four areas: adapting sales and
prices where possible, reducing overheads, reviewing investments,
and reducing working capital.
Suspension of market guidance
In view of the uncertainty over the duration and scale of the
epidemic and the government lockdowns and closures, the Group is
unable to assess its impacts precisely and reliably.
Accordingly, it is suspending the market guidance announced on
27 February 2020, and will provide an update as and when it is
able to.
Change in the proposed dividend
In this context, the Managing Partners, after obtaining the
favourable opinion of the Supervisory Board, have decided to
modify the proposed ordinary dividend to be submitted to
shareholders at the General Meeting to be held on 5 May 2020, in
order to (i) reduce the amount of the dividend to from €1.30 to €1
per share, and (ii) withdraw the stock dividend option.
Subject to the approval of the shareholders at the General
Meeting, the ex-dividend date for the proposed ordinary dividend
for 2019 of €1.00 per share will be 7 May 2020, with the payment
date set for 11 May 2020.
The Group’s strategy of refocusing around Lagardère Publishing
and Lagardère Travel Retail, two divisions that are highly
complementary in terms of growth and profitability, produced
positive results in 2019 with sharp increases in revenue, recurring
EBIT and free cash flow within the Group’s target scope.
While rigorously managing the current situation and its impacts,
the Group remains fully engaged on executing its strategic plan, in
the interest of all stakeholders, as ever.
In overcoming this crisis, the Group will draw on its historical
strengths of boldness, independence and creativity to adapt to a
world that is constantly changing, sometimes brutally.
***
Created in 1992, Lagardère is an international group with
operations in more than 40 countries worldwide. It employs over
30,000 people and generated revenue of €7,211 million in 2019.
In 2018, the Group launched its strategic refocusing around two
priority divisions: Lagardère Publishing (Book and e-Publishing,
Mobile and Board games) and Lagardère Travel Retail (Travel
Essentials, Duty Free & Fashion, Foodservice).
The Group’s operating assets also include Lagardère News and
Lagardère Live Entertainment.
Lagardère shares are listed on Euronext Paris.
www.lagardere.com
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version on businesswire.com: https://www.businesswire.com/news/home/20200325005219/en/
Press Thierry Funck-Brentano
Tel. +33 1 40 69 16 34 tfb@lagardere.fr Ramzi Khiroun Tel. +33 1 40
69 16 33 rk@lagardere.fr Investor
Relations Contact
Emmanuel Rapin Tel. +33 1 40 69 17 45 erapin@lagardere.fr
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