Elior Delivers an Outstanding First-Half Performance
With EBITA up by 144% and a faster pace of deleveraging
Today,
-
Initial benefits from our strategy implemented since
April 2023 - A more agile and efficient Group
- A return to profitability and growth momentum back on track
- Robust business development, led by strong customer relations and contract performance
- Costs streamlined
- Ongoing deleveraging
-
Solid results for the first half of fiscal 2023-2024
- €3,123 million in consolidated revenue, representing 5.9% organic growth
- A more-than twofold increase in adjusted EBITA to €100 million from €41 million a year earlier; adjusted EBITA margin up 150 basis points to 3.2%
- A positive €169 million in free cash flow versus a negative €15 million a year earlier
- A €137 million reduction in net debt during the period
- Leverage ratio (net debt/adjusted EBITDA) of 4.1x, i.e., below the 5.25x set for the covenant test
Outlook for full-year 2023-2024
- Organic revenue growth between 4% and 5%
- Adjusted EBITA margin of at least 2.5%
-
Leverage ratio (net debt/adjusted EBITDA) around 4.0x at
September 30, 2024
Commenting on these results,
“Against a backdrop of market uncertainty,
Our first-half 2023-2024 results are the outcome of the structural changes we’ve been putting in place since
Business Development
Several major contracts were won or renewed in the first half of 2023-2024, including with the following:
-
In
Contract Catering France : Dassault Aviation’s head office, the municipality of Aubervilliers, l’ÉcoleNationale de Police de Oissel, and the Sainte Croix Sainte Euverte Orléans group of schoolsUnited Kingdom :Leeds -Bradford international airport passenger lounges andLeicestershire County Cricket Club Italy : BNL AldobrandeschiSpain : Fundación La CaixaUnited States :The Thomas Jefferson Foundation Inc. andPine Bluff School India :Boeing India Private Limited and Autodesk India PVT. Limited
-
In
Multiservices -
Facility:
Disney Hotel and Edvance (EDF group) -
Health: Hôpital
Ambroise Paré and Centre René Gauducheau Temporary Staffing : Le Saint group- Aeronautics: new contracts with Airbus
- Energy & Urban: Batipart Immo and the municipality of Argenteuil
-
Facility:
Revenue
Consolidated revenue from continuing operations amounted to €3,123 million in the first half of fiscal 2023-2024, compared with €2,478 million for the year-earlier period. This 26.0% increase reflects organic growth of 5.9%, a 0.7% negative currency effect and a 20.8% positive impact from changes in scope of consolidation, mainly due to the consolidation of Derichebourg Multiservices (DMS) as from
On a like-for-like basis, revenue rose by 4.6%, including a positive 1.0% volume effect and a favorable 3.6% price effect.
Business development remained robust in the first half of 2023-2024, driving up revenue by 9%, having already added 10.3% to the first-half 2022-2023 revenue figure.
Contract losses, excluding voluntary contract exits, reduced revenue by 6.4%. On this basis, the revenue retention rate was 93.6% at
Revenue by business segment
The Corporate & Other segment, which includes the Group’s “Ciel de Paris” and “Maison de l’Amérique Latine” concession catering activities, generated €7 million in revenue in first-half 2023-2024.
Pro forma revenue
On a pro forma basis, consolidated revenue was 5.3% higher than the €2,965 million recorded for the first half of 2022-2023. Pro forma revenue growth for
Adjusted EBITA and Other Income Statement Items
Consolidated adjusted EBITA from continuing operations came to €100 million in the first half of 2023-2024, compared with €41 million for the same period of 2022-2023. Adjusted EBITA margin widened by 150 basis points to 3.2% from 1.7%. The effect of price increases more than offset the impact of inflation. Operational efficiency gains – which amounted to €29 million, including €9 million in synergies achieved – also contributed to the improvement in operating profitability.
In
In
For the Corporate & Other segment, adjusted EBITA represented a €7 million loss, against a €6 million loss in the same period of 2022-2023, reflecting the first-time consolidation of DMS’ corporate structures.
Pro forma EBITA
On a pro forma basis, EBITA margin for the Group as a whole also increased by 150 basis points from the 1.7% EBITA margin posted for the first half of 2022-2023. The pro forma EBITA margin for
Recurring operating profit from continuing operations totaled €88 million in the first half of 2023-2024, compared with €30 million a year earlier.
Non-recurring income and expenses represented a net expense of €15 million, versus a net expense of €17 million in first-half 2022-2023, and included €12 million in restructuring costs.
The Group recorded a net financial expense of €52 million for the six months ended
Income tax represented a €20 million charge versus a €3 million charge a year earlier. Current income tax expense amounted to €14 million (including the CVAE tax charge in
In view of the above factors, the Group ended first-half 2023-2024 with €1 million in net profit for the period attributable to owners of the parent, compared with a €23 million attributable net loss for the same period of 2022-2023.
Cash Flows, Debt and Liquidity
Free cash flow amounted to a positive €169 million, up sharply on the negative €15 million recorded for first-half 2022-2023.
The net change in operating working capital represented a strong cash inflow of €83 million, including a reversal of the €38 million temporary negative movement related to outstanding securitized and factored receivables recorded at the end of the 2022-2023 fiscal year. On a normalized basis, i.e., after neutralizing this €38 million positive reversal effect, free cash flow would have totaled €131 million.
EBITDA rose sharply from €107 million in first-half 2022-2023 to €189 million in the first six months of 2023-2024.
Net capital expenditure increased by €11 million year on year to €43 million from €32 million, reflecting the first-time consolidation of DMS. As a percentage of revenue it represented 1.4%, up slightly on the 1.3% for first-half 2022-2023.
Net debt stood at €1,256 million at
The leverage ratio (net debt/adjusted EBITDA), as calculated for the purpose of the test carried out by the Group’s lenders, was 4.1x at
The Group’s available liquidity totaled €342 million at
Corporate Social Responsibility (CSR)
Highly aware of
We completed our double materiality analysis during the period, which enabled us to identify the Group’s strategic goals and challenges regarding the social and environmental impacts that its activities have on its stakeholders and the financial impacts that social and environmental issues have on the Group.
This analysis will also enable the Group to comply with the EU Corporate Sustainability Reporting Directive (CSRD) and therefore publish its first sustainability report as early as the end of fiscal 2023-2024.
Events After the Reporting Date
On
With an operating presence in
Outlook
The Group's activity remains well oriented in each of its two businesses, and the upward trend in prices is expected to continue to boost revenue for the rest of fiscal 2023-2024. During the remainder of the year we intend to continue to win new business while at the same time streamlining our portfolio of existing contracts whose profitability levels are still considered insufficient.
In view of the above factors and our solid results for the first half of 2023-2024, we are standing by our previously announced guidance for the full fiscal year, namely:
- Organic revenue growth between 4% and 5%
- Adjusted EBITA margin of at least 2.5%.
-
Net debt/EBITDA ratio around 4.0x at
September 30, 2024
We have set the following mid-term financial targets:
- €56 million in run-rate synergies by 2026 (compared with the initially targeted €30 million)
-
Net debt/adjusted EBITDA ratio below 3.0x at
September 30, 2026
Presentation
The Group’s presentation of its results for the first half of 2023-2024 will take place on
The webcast will be accessible via the following link: https://channel.royalcast.com/landingpage/eliorgroup/20240516_1/
The dial-in numbers for the conference call are as follows:
Access code:
Financial calendar
Appendices
Appendix 1: Revenue by business segment
Appendix 2: Revenue by geographic area
Appendix 3: Pro forma revenue by business segment
Appendix 4: Adjusted EBITA and adjusted EBITA margin by business segment
Appendix 5: Pro forma adjusted EBITA and adjusted EBITA margin by business segment
Appendix 6: Simplified cash flow statement
Appendix 7: Consolidated financial statements
Appendix 8: Definitions of alternative performance indicators
About
Founded in 1991,
The Group’s business model is built on both innovation and social responsibility.
To find out more, visit www.eliorgroup.com/
Appendix 1: Revenue by business segment |
||||||
H1 2023-24 |
H1 2022-23 |
Organic growth |
Changes in scope of consolidation |
Currency effect |
Total year-on-year change |
|
(in € millions) |
||||||
|
2,293 |
2,169 |
5.9% |
+0.6% |
-0.8% |
+5.7% |
|
823 |
302 |
6.0% |
+166.9% |
0.0% |
+172.9% |
Sub-total |
3,116 |
2,471 |
5.9% |
+20.9% |
-0.7% |
+26.1% |
Corporate & Other |
7 |
7 |
1.9% |
NM |
NM |
+1.9% |
GROUP TOTAL |
3,123 |
2,478 |
5.9% |
+20.8% |
-0.7% |
+26.0% |
|
|
|
|
|
|
|
NM: not material |
Appendix 2: Revenue by geographic area |
|
H1 |
|
(in € millions) |
2023-24 |
|
1,607 |
|
841 |
Rest of the world |
675 |
GROUP TOTAL |
3,123 |
H1 |
H2 |
12 months |
|
(in € millions) |
2022-23 |
2022-23 |
2022-23 |
|
1,112 |
1,428 |
2,540 |
|
719 |
704 |
1,423 |
Rest of the world |
647 |
613 |
1,260 |
GROUP TOTAL |
2,478 |
2,745 |
5,223 |
Appendix 3: Pro forma revenue by business segment |
|||
Pro forma 2022-23 |
H1 |
H2 |
12 months |
(in € millions) |
2022-23 |
2022-23 |
2022-23 |
|
2,169 |
1,982 |
4,151 |
|
789 |
804 |
1,593 |
Sub-total |
2,958 |
2,786 |
5,744 |
Corporate & Other |
7 |
9 |
16 |
GROUP TOTAL |
2,965 |
2,795 |
5,760 |
Appendix 4: Adjusted EBITA and adjusted EBITA margin by business segment |
|||||
H1 |
Change in adjusted EBITA |
Adjusted EBITA margin |
|||
(in € millions) |
2023-24 |
2022-23 |
2023-24 |
2022-23 |
|
|
91 |
49 |
+42 |
4.0% |
2.3% |
|
16 |
(2) |
+18 |
1.9% |
-0.8% |
Sub-total |
107 |
47 |
+60 |
3.4% |
1.9% |
Corporate & Other |
(7) |
(6) |
-1 |
NM |
NM |
GROUP TOTAL |
100 |
41 |
+59 |
3.2% |
1.7% |
NM: not material |
Appendix 5: Pro forma adjusted EBITA and adjusted EBITA margin by business segment |
||||||
Pro forma 2022-23 |
H1 |
H2 |
12 months |
|||
(in € millions) |
Adjusted EBITA |
Adjusted EBITA margin |
Adjusted EBITA |
Adjusted EBITA margin |
Adjusted EBITA |
Adjusted EBITA margin |
|
49 |
2.3% |
(2) |
-0.1% |
47 |
1.1% |
|
9 |
1.2% |
29 |
3.5% |
38 |
2.3% |
Sub-total |
58 |
2.0% |
27 |
1.0% |
85 |
1.5% |
Corporate & Other |
(9) |
NM |
(8) |
NM |
(17) |
NM |
GROUP TOTAL |
49 |
1.7% |
19 |
0.7% |
68 |
1.2% |
NM: not material |
Appendix 6: Simplified cash flow statement |
||
Six months ended |
||
|
||
(in € millions) |
2024 |
2023 |
EBITDA |
189 |
107 |
Purchases of and proceeds from sale of property, plant and equipment and intangible assets |
(43) |
(32) |
Change in operating working capital |
83 |
(45) |
Share of profit of equity-accounted investees |
- |
- |
Non-recurring income and expenses impacting cash |
(13) |
(15) |
Other non-cash movements |
(1) |
2 |
Repayments of lease liabilities (IFRS 16) |
(41) |
(33) |
Operating free cash flow |
174 |
(16) |
Tax recovered (paid) |
(5) |
1 |
Free cash flow |
169 |
(15) |
Appendix 7: Consolidated financial statements |
||
Consolidated income statement |
||
|
Six months ended |
|
|
||
(in € millions) |
2024 |
2023 |
Revenue |
3,123 |
2,478 |
Purchase of raw materials and consumables |
(907) |
(845) |
Personnel costs |
(1,675) |
(1,255) |
Share-based compensation expense |
1 |
(3) |
Other operating expenses |
(293) |
(223) |
Taxes other than on income |
(60) |
(46) |
Depreciation, amortization and provisions for recurring operating items |
(88) |
(68) |
Net amortization of intangible assets recognized on consolidation |
(13) |
(8) |
Recurring operating profit from continuing operations |
88 |
30 |
Share of profit of equity-accounted investees |
- |
- |
Recurring operating profit from continuing operations including share of profit of equity-accounted investees |
88 |
30 |
Non-recurring income and expenses, net |
(15) |
(17) |
Operating profit from continuing operations including share of profit of equity-accounted investees |
73 |
13 |
Financial expenses |
(61) |
(39) |
Financial income |
9 |
4 |
Profit/(loss) from continuing operations before income tax |
21 |
(22) |
Income tax |
(20) |
(3) |
Net profit/(loss) for the period from continuing operations |
1 |
(25) |
Net profit for the period from discontinued operations |
- |
- |
Net profit/(loss) for the period |
1 |
(25) |
Attributable to: |
|
|
Owners of the parent |
1 |
(23) |
Non-controlling interests |
- |
(2) |
Six months ended |
||
|
||
(in €) |
2024 |
2023 |
Earnings/(loss) per share |
|
|
Earnings/(loss) per share – continuing operations |
|
|
Basic |
- |
(0.14) |
Diluted |
- |
(0.14) |
Earnings per share – discontinued operations |
|
|
Basic |
- |
- |
Diluted |
- |
- |
Total earnings/(loss) per share |
|
|
Basic |
- |
(0.14) |
Diluted |
- |
(0.14) |
Consolidated balance sheet – Assets |
||
(in € millions) |
At |
At |
|
1,670 |
1,680 |
Intangible assets |
247 |
257 |
Property, plant and equipment |
256 |
258 |
Right-of-use assets |
196 |
216 |
Non-current financial assets |
129 |
127 |
Fair value of derivative financial instruments (*) |
2 |
5 |
Deferred tax assets |
82 |
84 |
Total non-current assets |
2,582 |
2,627 |
Inventories |
101 |
107 |
Trade and other receivables |
953 |
975 |
Current income tax assets |
13 |
12 |
Other current assets |
75 |
67 |
Cash and cash equivalents (*) |
81 |
45 |
Assets classified as held for sale |
- |
- |
Total current assets |
1,223 |
1,206 |
Total assets |
3,805 |
3,833 |
(*) Included in the calculation of net debt |
Consolidated balance sheet – Equity and liabilities |
||
(in € millions) |
At |
At |
Share capital |
3 |
3 |
Reserves and retained earnings(1) |
822 |
833 |
Translation reserve |
2 |
11 |
Equity attributable to owners of the parent |
827 |
847 |
Non-controlling interests |
- |
(1) |
Total equity |
827 |
846 |
Long-term debt (*) |
1,023 |
1,074 |
Long-term lease liabilities (*) |
137 |
155 |
Fair value of derivative financial instruments (*) |
6 |
- |
Provisions for pension and other post-employment benefit obligations |
80 |
74 |
Other long-term provisions |
28 |
28 |
Other non-current liabilities |
6 |
6 |
Total non-current liabilities |
1,280 |
1,337 |
Trade and other payables |
687 |
646 |
Due to suppliers of non-current assets |
12 |
14 |
Accrued taxes and payroll costs |
667 |
639 |
Current income tax liabilities |
17 |
8 |
Short-term debt (*) |
103 |
135 |
Short-term lease liabilities (*) |
68 |
67 |
Short-term provisions |
54 |
56 |
Contract liabilities |
51 |
53 |
Other current liabilities |
39 |
32 |
Liabilities classified as held for sale |
- |
- |
Total current liabilities |
1,698 |
1,650 |
Total liabilities |
2,978 |
2,987 |
Total equity and liabilities |
3,805 |
3,833 |
|
||
Net debt |
1,254 |
1,381 |
Net debt excluding fair value of derivative financial instruments and debt issuance costs |
1,256 |
1,393 |
(*) Included in the calculation of net debt |
Consolidated cash flow statement |
||
|
Six months ended |
|
|
||
(in € millions) |
2024 |
2023 |
Recurring operating profit including share of profit of equity-accounted investees |
88 |
30 |
Amortization and depreciation(1) |
90 |
76 |
Provisions |
11 |
1 |
EBITDA |
189 |
107 |
Share of profit of equity-accounted investees |
- |
- |
Change in operating working capital |
83 |
(45) |
Non-recurring income and expenses impacting cash |
(13) |
(15) |
Interest and other financial expenses paid |
(48) |
(32) |
Tax recovered (paid) |
(5) |
1 |
Other non-cash movements |
(1) |
2 |
Net cash from operating activities – continuing operations |
205 |
18 |
Purchases of property, plant and equipment and intangible assets |
(46) |
(35) |
Proceeds from sale of property, plant and equipment and intangible assets |
3 |
3 |
Purchases of financial assets |
(2) |
(3) |
Proceeds from sale of financial assets |
1 |
- |
Acquisitions of shares in consolidated companies, net of cash acquired |
(2) |
- |
Other cash flows from investing activities |
(1) |
(1) |
Net cash from/(used in) investing activities – continuing operations |
(47) |
(36) |
Proceeds from borrowings |
14 |
51 |
Repayments of borrowings |
(86) |
(73) |
Repayments of lease liabilities |
(37) |
(30) |
Net cash from/(used in) financing activities – continuing operations |
(109) |
(52) |
Effect of exchange rate changes |
3 |
(4) |
Increase/(decrease) in net cash and cash equivalents – continuing operations |
52 |
(74) |
Increase/(decrease) in net cash and cash equivalents – discontinued operations |
(1) |
- |
|
|
|
Net cash and cash equivalents at beginning of period |
(2) |
59 |
Net cash and cash equivalents at end of period |
49 |
(15) |
(1)
Including amortization of advances on customer contracts corresponding to €1 million in the six months ended |
Appendix 8: Definitions of alternative performance indicators
Organic growth in consolidated revenue: Growth in consolidated revenue expressed as a percentage and adjusted for the impact of (i) changes in exchange rates, using the calculation method described in Chapter 4, Section 4.2 of the 2022-2023 Universal Registration Document, (ii) changes in accounting policies, and (iii) changes in scope of consolidation.
Revenue retention rate: Based on the percentage of revenue from the previous fiscal year, adjusted for the cumulative year-on-year change in revenue attributable to contracts or sites lost since the beginning of the previous fiscal year.
Adjusted EBITA: Recurring operating profit, including share of profit of equity-accounted investees, adjusted for share-based compensation (stock options and performance shares granted by Group companies) and net amortization of intangible assets recognized on consolidation.
The Group considers that this indicator best reflects the operating performance of its businesses as it includes the depreciation and amortization arising as a result of the capex inherent to its business model. It is also the most commonly used indicator in the industry and therefore enables meaningful comparisons between the Group and its peers.
Adjusted EBITA margin: Adjusted EBITA as a percentage of consolidated revenue.
Operating free cash flow: The sum of the following items as defined in the 2022-2023 Universal Registration Document and recorded either as individual line items or as the sum of several individual line items in the consolidated cash flow statement:
- EBITDA;
- net capital expenditure (i.e., amounts paid as consideration for property, plant and equipment and intangible assets used in operations less the proceeds received from sales of these types of assets);
- repayments of lease liabilities (IFRS 16);
- change in net operating working capital;
- share of profit of equity-accounted investees;
- non-recurring income and expenses impacting cash;
- other non-cash movements.
This indicator reflects cash generated by operations.
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Press contact
Investor contact
investor@eliorgroup.com
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