The Bookseller.com

1st December 2008

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Hachette improves profit margin in 2007

12.03.08 Philip Jones

Hachette saw its operating profit margin increase to 11.2% in 2007, according to final results filed by its parent Lagardere. The business recorded a "fine performance", the group said, with earnings before interest and tax (EBIT) up by 9.4%.

The group stated that all operating segments contributed to the profit growth. "France had a good year, thanks largely to Education and Larousse, which benefited from the remedial measures taken in 2006. The United States (strong performance by bestsellers) and Spain (good year in Education) also stood out."

Lagardere has previously reported that its full-year sales grew by 4.7% on a like-for-like basis and 8.6% on a reported basis at €2.1bn, with sales of bestsellers in the UK and France up sharply in the latter part of the year.

Overall, the Lagardère Group generated recurring EBIT before associates of €636m in 2007, an increase of 22% on the 2006 figure of €521m. EBIT at its media division rose from €520m to €636m, but at net level profits plunged from €270 to €151m.

Financial International Philip Jones Hachette Lagardere France