Louis Hachette Group Q1 2025 slides reveal 5% revenue growth and geographic diversification

Louis Hachette Group (ALHG) reported a robust start to 2025, with Q1 revenue increasing 5.0% to €2,047 million, primarily driven by strong growth in its Publishing (+8.0%) and Travel Retail (+4.7%) divisions. The company's strategic geographic diversification is progressing, reducing reliance on the French market, while its Travel Retail segment demonstrates full post-pandemic recovery. Despite challenges in print for Prisma Media, its digital transformation is notable, with digital now accounting for 61% of advertising revenue, indicating a resilient and adapting portfolio.

Analysis

Louis Hachette Group (ALHG) demonstrated a solid operational start to 2025, with Q1 revenue rising 5.0% on a reported basis to €2,047 million. This growth was primarily fueled by its two largest divisions, Publishing and Travel Retail, which posted revenue increases of 8.0% and 4.7%, respectively. The Travel Retail segment's performance, following a record 2024, signals a full recovery and ongoing expansion post-pandemic, with strong contributions from EMEA. The Publishing division's success was broad-based, with notable performance in the UK market. A key strategic development is the company's successful geographic diversification, which has reduced revenue concentration in France from 25% to 22% while increasing the share from North America and Europe. This shift mitigates single-market risk. Conversely, the Prisma Media division continues to face structural headwinds, with revenue declining 3.2% due to the shrinking print market. However, a significant digital transformation is underway within this segment, as evidenced by digital revenue now accounting for 61% of its advertising income. While no explicit guidance was provided for FY2025, the underlying momentum in the core business units and effective strategic rebalancing suggest a positive trajectory, tempered by the ongoing challenges in the print media segment.

Key Decisions for Investors

• Investors should view the strong performance in the core Travel Retail and Publishing divisions as a primary indicator of the company's health, justifying a constructive outlook on its growth potential.
• It is critical to monitor the digital transformation within the Prisma Media segment, as its ability to offset structural print declines is a key test of the company's long-term adaptation strategy.
• The successful execution of the geographic diversification strategy, which reduces reliance on the French market, should be considered a significant de-risking factor that strengthens the company's resilience to regional economic shocks.
• With the stock trading within its 52-week range despite strong Q1 results, investors may find the current valuation compelling, but should watch for formal full-year guidance to confirm the sustained momentum.