Note 37 - Events after the reporting period
Sale of Lagardère Sports to H.I.G. Capital
As part of its strategic refocusing around Lagardère Publishing and Lagardère Travel Retail, the Lagardère group announced in December 2019 that it had received an offer from H.I.G. Capital to acquire 75% of the capital of Lagardère Sports. The preliminary sale agreement was signed on 19 February 2020.
Covid-19 epidemic
The Covid-19 epidemic has had a marked impact on business levels at Lagardère Travel Retail since the middle of January, chiefly in the Asia-Pacific zone as well as at its international hubs (notably as regards Chinese tourist spending at European destinations). In view of the change in business levels observed at the time of the accounts closing, Lagardère estimates that Covid-19 will have an adverse impact on recurring operating profit of fully consolidated companies, excluding the impact of the Group’s action plan, of around €20 million in the first quarter of 2020. Around half of this impact is expected to be offset over the course of the year by the progressive ramp-up of various initiatives that are already being implemented in all geographies (e.g., optimisation of site opening hours and rents in agreement with landlords, optimisation of operating costs).
Obviously, it is not currently possible to foresee how the epidemic will develop going forward. The Group is continuing to monitor the situation very carefully, with a view to implementing any additional measures across all of its geographies as and when appropriate.