Okay. Ladies and gentlemen, thank you for joining us today for the Lagardère SA full year 2022 results. I'm Emmanuel Rapin, head of investor relations. I will be guiding you through this presentation. The conference is led this afternoon by Arnaud Lagardère, Chairman and Chief Executive Officer of Lagardère SA, Sophie Stabile, group CFO, Fabrice Bakhouche, Deputy Chief Executive Officer, Hachette Livre, Dag Rasmussen, chairman and CEO, Lagardère Travel Retail. After the presentation, we will have a Q&A session. Please click on the Ask the Question tab at the top right of your screen. I will be reading only questions from financial analysts. I leave the floor to Arnaud Lagardère.
Thank you so much. Good morning, good afternoon to all of you. I will be very, very brief. You've got the numbers. Needless to say, Lagardère is back strong, very strong, stronger than ever on its 2 legs. We gained close to EUR 600 million of recurring EBIT during the past two years compared to 2020. We are even higher to that respect than 2019. I would like to congratulate, since I know that there are a lot of people from the company that are listening to this conf call, I would like to congratulate them again. The execution of the strategy was perfect. Thank you. Thank you so much. Sophie, I leave the floor to you. We'll be back for the questions. Go ahead.
Thank you, Arnaud, and good evening to everyone. Today, we are pleased to share with you Lagardère Group's excellent results in 2022. The activity was driven by the outstanding performances of our two main businesses. Lagardère Publishing will maintain a historic high level of activity after an exceptional performance in 2021. Lagardère Travel Retail, which continue its very strong recovery path. We also achieve our corporate cost target with EUR 35 million of reduction versus 2019, and continue our dynamic M&A activity across our branches and geographies. Let's now have a look at the main group figures. Overall, as you can see on slide five, group revenue is strong at EUR 6.9 billion, up by 23% versus 2021 on a like-for-like basis and close to the 2019 level. We improve all our main financial indicators.
The group recurring EBIT amounted to EUR 438 million in 2022, a strong increase at its highest level since 2010. The operating margin, which is 6.3%, significantly above 2021, also above 2019 level. The free cash flow, excluding changes in working capital, is at EUR 294 million. Considering the sharp improvement in our operation and of our leverage, the board of directors has decided to submit a dividend payout resolution of EUR 1.30 per share at the next AGM taking place on 18th of April. Let's deep dive into the division revenue. Group revenue growth is back on its two main pillars, essentially due to Lagardère Travel Retail tremendous growth in 2022. Overall, group revenue is up 35.1% as reported and up 28.3% like-for-like.
The difference is mainly due to EUR 243 million currency effect, as you probably know, due to the U.S. dollar, and EUR 109 million scope effect, which includes the acquisition of Workman Paperblanks for Lagardère Publishing and Dubai-based Creative Table Holdings in Dubai for Lagardère Travel Retail. The group's recurring EBIT also strongly increased. On the one hand, Lagardère Publishing recorded a lower level of profitability while still remaining at a historic level. On the other hand, Lagardère Travel Retail's recurring EBIT drastically jumped up +EUR 217 million. Other activities recurring EBIT is at break-even. The group stands in a very solid position, confirming the relevance of the strategic refocusing carried out over the past years. Moving on to Lagardère Publishing.
After reaching a historical level, Lagardère Publishing's revenue is up 5.8% as reported and slightly down 1.9% like-for-like at EUR 2.7 billion. This level of activity is a result of the branch capacity. First, to build on the diversity of the portfolio. Two, to secure bestsellers in all countries like Le Grand Monde by Pierre Lemaitre in France and Run Rose Run by James Patterson and Dolly Parton in the U.S. Third, capture social media trends and the exposure of authors on social networks such as TikTok with Verity and The Lovely Bones. Last, take advantage of Netflix adaptation with The Witcher or Arc sobre. Moving on to slide 10. In 2022, we observed different trends by geography. Notably, a slowdown in France, mainly due to later release scheduled in general literature versus last year.
With no new Asterix album, the activity remained at a high level, thanks to the recovery of tourism and children and young adults bestsellers. In the U.K., in the defining market, we grew by +3.4%, driven by bestsellers that benefited from the social networks effect mentioned earlier and Netflix adaptations. Finally, U.S. and Canada represented 32% of revenue versus 28% in 2021, thanks to the acquisition of Workman Publishing. Like-for-like, the revenue was down -2.2%, but above market figures. Let's have a look at profitability on the next slide. Lagardère Publishing recurring EBIT reached EUR 302 million. The decrease versus last year is due to lower like-for-like revenue levels and the impact of inflation in an unfavorable market.
The important point to have in mind is that recurring EBIT remains at a historic high, thanks to operational initiatives put in place by the teams in the face of higher costs. The margin level at 11% is also a significant improvement versus pre-COVID, which was at 9.2%. Let's have a look at Lagardère Publishing free cash flow. Free cash flow before changes in working capital is down to EUR 155 million versus EUR 254 million in 2021, but still better than in 2019. This evolution is linked to investments in CapEx for IT and transformation projects and a higher level of income taxes.
This said, the major changes in working capital are mainly due to trade payables to third party publisher, which fell sharply, higher inventories due to the inflationary environment, and early payment to suppliers in France. The change of working capital is mainly driven by seasonal or one-off items. Moving now on to Lagardère Travel Retail. In a nutshell, for Lagardère Travel Retail, 2022 was a year of exceptional recovery. Revenue came in at EUR 3.9 billion, up 71.5% as reported, and up 65.4% like-for-like. We continue to outperform IATA figures due to our favorable geographic footprint and diversified location. However, considering the global travel situation, we are still below 2019, which still leaves room for improvement. Let's deep dive into the division's revenues.
Travel retail benefited from improvement travel trends in the EMEA, the U.S., and the reopening of transatlantic travel. Regional traffic accelerate in Europe, notably in Italy, France, and the U.K. U.S. rebound started in 2021 and accelerated since then. On the contrary, China was still hampered by the zero-COVID strategy. The strong growth in international traffic had a positive effect on our duty-free and fashion, whose revenue share relatively increased. Moving on to slide 16. Lagardère Travel Retail is back to positive recurring EBIT, thanks to the air traffic recovery and the strong commitment of teams to increase cost flexibility and drive operating excellence. The division achieved an exceptional flow through low point at 4.9%. Recurring EBIT stand at positive EUR 136 million. Besides, all projects on the LEAP plan are well on track.
Let me remind you that this plan is aimed at delivering EUR 100 million of additional recurring EBIT versus 2019 at same revenue level. Let's look at Lagardère Travel Retail free cash flow. Free cash flow before changes in working capital reached EUR 138 million versus minus EUR 48 million in 2021, mainly thanks to cash flow from operation due to travel retail recovery. It is to be noted, we are starting to increase our investment up to EUR 123 million in 2022 versus EUR 88 million in 2021, since airports are preparing future improvements. Let's move on to other activities. Revenue for the year were EUR 254 million, up 5.1% on a like-for-like basis. A few points to be highlighted.
The positive performance of Lagardère Live Entertainment in 2022, with the reopening of live performance venues. International licenses up by 3.8%, and news is stable at -2.8%. Let's move on to group figures. The most important things to look at on this table is profit group share, which is positive EUR 161 million, was mainly driven by recurring EBIT increase. Moving on to group cash flow statement. On this slide, we can see three key items which show the main dynamics of our branches. First, the cash flow from operation before changes in working capital from EUR 337 million to EUR 524 million due to the strong recovery of the activity. Our CapEx increase showing our commitment to the future development of the business.
The purchase of investment driven by our M&A strategy with Paperblanks, Welbeck and Vagabond at Lagardère Publishing, the acquisition of Creative Table Holdings in Dubai, plus the increase at our JV with ADP for Lagardère Travel Retail. Moving on to available liquidity. The group's liquidity position is solid at EUR 1.9 billion. In line with our active prudent financial strategy, in 2022, the revolving credit facility was extended until April 2024. The net debt. Net debt is up to EUR 1.7 billion at the end of December 2022, compared to EUR 1.5 billion at the end of 2021. This is due notably to the significant M&A activity, the change in working capital, and the dividend payout.
However, it should be noted that we achieve a very good level of leverage at 2.9, compared to 3.6 in 2021. Looking at the shareholder structure. The main point to keep in mind is the current provisional deadline of the 23rd of May for the European Commission regarding the friendly public offer from Vivendi. A few words now on the group ESG strategy. The group is proud of its CSR performance, which is a matter of great importance to all of us. As a testimony to our strong CSR commitments, we are happy to be a member of two top-rate ESG indices. In addition, we are included in the S&P Global Sustainability Yearbook for the 5th consecutive year. We are strongly committed to our four main drivers that you can see on the slide.
The place of people in our group, social and cultural diversity, limiting of our environmental impact, and ethical and governance responsibility. I will just share a few example of our action. In 2022, we reached 45% of women top executive, up from 44 in 2021. We led strong project towards diversity with, for example, the creation of the Foundation Hachette pour la lecture. Additionally, the group increased its focus on its environmental impact with a reduction of our packaging, more recycling, and better paper management. Last, we also work towards a better assessment of our supplier with our partner, EcoVadis. A few word on 2023. Despite the uncertain economic environment, we remain confident in our ability to maintain a high level of results.
This, thanks to the dynamics of and responsiveness of the teams and the diversified geographical presence of our two main branches. Despite pressures on costs, Lagardère Publishing should maintain similar performance to 2022. In a normalized environment, as global traffic continue to recover, Lagardère Travel Retail has potential for revenue and profitability growth, meeting LEAP initiatives. Many thanks for your attention. We are now available to answer your questions.
Yes, we have received some questions from Julien Hart at Barclays, from Barclays. This is three questions. The first one is about the LEAP initiative from Travel Retail. Would the EUR 100 million of additional EBITDA at the same revenue than 2019 still the case and be applicable? The question number two is in Q1 2023, what is the trend of business for Travel Retail versus 2019? Obviously, the question three is the same for Lagardère Publishing. What trend do you see in the Q1 2023?
Dag speaking. Hi, Julian. It's a bit subtle. yes, LEAP objective at EUR 100 million is confirmed. It's confirmed at 2019 activity and not revenue. Today, we haven't reached 2019 activity, but we will be reaching 2019 revenue because there's inflation, there's some non-like-for-like and so on. This is the first point. The second point is that, yes, LEAP will have an impact of EUR 100 million. There obviously are also headwinds. LEAP was made to increase result or recurring EBIT, but also to fight against inflation, to fight against some rent increases and so on. You will not find 100% of the EUR 100 million in result with 2019 activities.
This being said, we will see a significant improvement versus 2019 in our results. I don't think we disclosed any specific figures by division, so I won't go further than that. The outcome for Travel Retail should be very positive. The trends for 2023, January is very similar to December. We're above 2019 revenues in January, and we expect this to continue in February. We are, I would say, cautiously confident for the year. Lots of possible headwinds, as you know, inflation, geopolitical, sanitary, but we believe that we have more tailwinds than headwinds, so confidence for the year.
This is Fabrice for Publishing. We are having, as far as Hachette Livre is concerned, a relatively good start of the year in 2023. France is doing well, on a dynamic market. As you know, we have, very, very strong bestsellers, pushing our revenues up at the beginning of the year, like Spare by Prince Harry. It's a new book by Pierre Lemaitre, or this new dark romance book called Captive, which was very successful at the end of 2021. We've just released, a second volume. The U.K. is resisting reasonably well too. Same thing for Spain and Mexico, with a strong rebound in Mexico continuing in 2023. The negative point for the beginning of the year is our U.S. business, which is struggling in a very soft market.
In that respect, is a continuation of the Q4 2022 trend, on the U.S. market. Again, relatively confident overall at the group level for Publishing. Same headwinds as the ones mentioned by Dag: inflation, paper costs for us, salary growth. We are taking the appropriate steps to offset these headwinds over 2023.
We have questions also from [Sandy Katab, Exane]. The first one is about the performance of publishing in 2023. Could you clarify what do you mean by similar performances in 2023 versus 2022? Is it top line, margin, or both? For Travel Retail, in 2022, you benefited from EUR 50 million of one-time government and airport aid. Could you expect some to occur again in 2023? If yes, how much? Could you comment on your interest about Simon & Schuster, and whether if you expect to partner or compete with Vivendi for this asset?
Fabrice?
Fabrice.
On publishing similar performance in 2023 versus 2022, refers to revenues. We expect similar level, as I said, of activity in 2023 versus 2022. Regarding margin, we will fight as hard as we can to be close to the level of margins we reached in 2022.
Okay.
Yes.
Yeah. Yes, Arnaud, I think you want to take the point on Simon-.
Yeah, correct. I will pick the point on Simon & Schuster. We today have the luxury to have a five years business plan that will show growth, increase in margins and by ourself. We don't need any specific acquisitions, whether it's in Travel Retail or Publishing, to complete this business plan. That is really optimistic, and we believe in it. Therefore, if there are opportunities, we'll see them and we'll study them without pressure. We know that those acquisitions are good to have, but not must have, which is a huge difference. Meaning that the price will be extremely important in any of those transactions.
I've heard and I've read, like you, that Simon & Schuster might be or will be for sale in the coming future and probably close future, definitely this year, if I read well the PR from Paramount. We will obviously look at it. We can do it by ourself without the help of anybody. For sure, having Vivendi as the majority shareholder, and hopefully, sooner than later, will tremendously help us, you know, in the negotiations with the banks, and so on. That will be a plus. We can do it, whatever. We'll be very, very, you know, looking at the numbers and at the price, which to us will make the difference.
We didn't bid the first time because it was a time where we were in the middle of the trouble for travel retail. Now the whole company is back on its feet and we know that we can bid on Simon & Schuster if it's, again, for sale, definitely. Again, don't expect us to do anything crazy because we can live without, and that's a huge luxury. That's all I can say, you know, since it's not officially on sale, since, you know, an investment bank has not been appointed yet, I think, from Paramount. We'll be very, very, very, very cautious. Any other question?
There was a question for me on the one-time government and airport aid.
Yeah.
-which was EUR 50 million in 2022. In 2023, we definitely cannot expect the same level. I mean, if we get 20% we'd be happy. This being said, both activity in general and China in particular, which is recovering, should overcompensate that. I mean, it's a kind of nice balance we've had. We got it when we really needed it. It definitely should be much less needed now. There will be some aid coming, linked with previous years, but which come out with-
Yes, we have one additional question from Julia Rock. It is about travel retail again, can we get some flow through idea versus 2019 for travel retail in 2023?
Yes. Thank you, Julia. Flow through was a concept we communicated when the activity was bad. Now, actually, we will generate more results with similar or less sales. Flow through, theoretically, flow through would be negative. We will not communicate on flow through anymore. We don't think it's relevant KPI. I believe in reporting which evolve according to needs. I don't think, flow through and the group agrees with that. We don't think that flow through is relevant anymore.
Now we have two additional questions from Christophe Cherblanc from Société Générale. The first one is on the Lagardère Publishing. Can you give us an estimate of paper and energy cost inflation?
In what value?
I don't have whether it is 2023 or 2022 and, most probably, what will be the case in 2023.
I would love.
You have to make a guess.
I would love to have a crystal ball for 2023. Regarding 2022, which was the question, we are adding a EUR 55 million increase in paper, energy, and shipping. Overall, on these three type of expenses, it's more than EUR 50 million impact on a full year basis.
The second question is about working capital. Do you expect in 2023 some outflow or is it a level that at the end of 2023 is normalized? I think it's for the whole picture anyway, it's more the group vision.
Okay.
If I may.
In terms of working capital, we should arrive to improve in 2023, but at a very, very light level, we will be in the same trend as 2022.
We can check here for a few seconds if we have additional questions. Nothing from the podcast. Maybe we can close this conference call. Maybe thank you to all the questions. Keep you posted for the next L.A. event. That will be the general assembly meeting on the 18th of April.
Thank you so much to everybody.
Thank you. Bye.
Thank you. Bye-bye. Thank you so much.