Regulatory News:
Elior Group (Paris:ELIOR) (Euronext Paris – ISIN: FR
0011950732), one of the world’s leading operators in catering and
support services, announces its revenues for the third quarter of
fiscal year 2022-2023, ended June 30, 2023.
Key figures third-quarter / first 9 months 2022-2023
- Third-quarter revenue of €1,416m, up +20.0% year-on-year, of
which +8.8% organically
- Volumes: +2.4%; prices: +5.2%; net new business: +3.1%;
voluntary contract exits: -1.9%
- Scope impact: +12.0%, Preferred Meals exit more than offset by
the Derichebourg Multiservices integration; currency impact:
-0.8%
- 9-month revenue: €3,894m; organic growth: +12.3%
- Retention rate at June 30, 2023: 91.9% broadly unchanged vs.
92.0% at June 30, 2022; retention reaching 93.4% excluding
voluntary contract exits
- Available liquidity at end-June 2023 was €347m, vs. with €394m
at end-March 2023
Revision of the outlook for full-year 2022-2023
- Organic revenue growth of at least 10%
- Adjusted EBITA margin of around 1%
- Capital expenditure at around 1.7% of revenue
Elior Group Chairman and CEO Daniel Derichebourg
commented:
"Organic growth remained solid in the third quarter, driven by
volume and price increases, as well as positive net new business.
Inflation seems to have peaked but remains high. In addition, our
margins are temporarily impacted by higher-than-expected start-up
costs in relation to a handful of new catering contracts in France
and Italy. The integration of Derichebourg Multiservices is
progressing well and reinforces my confidence in the synergy target
initially set. Beyond this, I have decided to intensify and
accelerate the overhaul of our organization, particularly in
France, in terms of both structures and operations. To date, in
France, we have already initiated recurring cost reductions
totaling 24 million euros per year. After these first three months
at the helm of Elior, I remain very confident. The turnaround
potential is greater than I had initially identified.”
Business development
Elior signed or renewed several major contracts in the third
quarter of 2022-2023, of which,
- in Contract Catering: - France: the city of Chelles and
Carrefour Group’s worldwide headquarters - UK: Royal Masonic
Benevolent Institution and Anchor Hanover - US: Alabama Department
of Senior Services and Louisiana Department of Health - Italy: the
city of Pescara in Abruzzo and technology company Almaviva - Spain:
EPESEC (Extremadura Public Entity of Complementary Educational
Services) and the city of Monforte de Lemos in Galicia
- in Multiservices: - Facility Services: the city of
Meudon and the Mama Shelter hotel in Dijon - Healthcare: the MGEN
Marcel Rivière center and the Villefranche-sur-Saône hospital -
Recruitment: logistics companies Hermes and XPO - Aeronautics:
Airbus Atlantic - Urban: the Rungis international wholesale market
and engineering school ESPCI Paris.
Revenue
Revenue from continuing operations came to €1,416 million
in the third quarter of fiscal 2022-2023, compared with €1,180
million for the same period a year earlier. This +20.0% increase
reflects organic growth of +8.8%, unfavorable currency impact of
-0.8%, and scope impact of +12.0%. The integration of Derichebourg
Multiservices (DMS) more than offset the exit of Preferred Meals in
the United States.
Like-for-like revenue increased by +7.6%, of which volumes up
+2.4% and prices up +5.2%.
In addition, new business, net of contracts losses, contributed
a +3.1% increase in revenue. Voluntary contract exits translate
into an additional revenue contraction of -1.9%.
Over the first 9 months of the current financial year, Group
revenue was €3,894 million, up +13.9% compared to €3,419 million in
the same period a year earlier, reflecting organic growth of
+12.3%, scope effect of +0.7% and currency impact of +0.9%.
At June 30, 2023, the 9-month retention rate was 91.9%, broadly
unchanged compared to 92.0% at June 30, 2022. Excluding voluntary
exits, the retention rate is 93.4%.
Revenues by operating segment:
In Contract Catering, revenues totaled €1.059 million in
the third quarter of the current fiscal year, up +3.0% on the
€1,028 million for the same period a year earlier. This increase
reflects organic growth of +9.4%, scope impact of -5.5% (exit of
Preferred Meals) and currency impact of -0.9%.
As expected, organic growth slowed in the third quarter after
the strong rebound in volumes recorded in the first half thanks to
an Omicron catch-up effect. However, it remains solid, driven by
all levers: volumes, prices and net new business.
Over the first 9 months of the current fiscal year, revenues in
contract catering totaled €3,228 million, reflecting organic growth
of +13.6 %.
In Multiservices, revenues in the third quarter of the
current fiscal year totaled €352 million compared with €147 million
a year earlier. This reflects organic growth of +4.3 % and scope
effect of €199 million relating to the integration of DMS from
April 18, 2023.
In Facility Services, against a backdrop of high wage inflation,
price renegotiations remain challenging. In Heathcare, occupancy
rates have not yet returned to pre-Covid levels. The Aeronautics
division is benefiting fully from the sector’s strong rebound.
Momentum in the Urban and Recruitment divisions remains
favorable.
Over the first 9 months of the current fiscal year,
Multiservices revenues totaled €654million, representing organic
growth of +3.1 %.
Corporate & Other, which includes the Group’s
remaining concession catering activities not sold with Areas,
generated revenue of €5 million in the third quarter and €12
million over the first 9 months of the current fiscal year.
Liquidity
At June 30, 2023, available liquidity came to €347
million, compared with €394 million at March 31, 2023, reflecting
in particular calendar effects and non-recurring items. The
available liquidity includes cash of €70 million and undrawn
revolving credit facilities of €208 million out of a total of €350
million. Remaining available credit lines amount to €69
million.
Post-closing events
On July 7, 2023, Elior Group obtained a one-year extension to
the maturity of almost all (89%) of its syndicated bank debt. The
senior loan of €100 million now matures on July 2, 2026 for €89
million, and on July 2, 2025 for €11 million. In addition, the
revolving credit line of €350 million now matures on July 2, 2026
for €311 million and on July 2, 2025 for €39 million. The exercise
of this extension option does not give rise to any additional
financing costs for the Group.
Outlook
Organic growth should remain solid in the fourth quarter.
Cumulated price renegotiations reached 303 million euros at
end-June 2023. The application of annual indexation clauses in
public sector P&L contracts should add to the price increases
obtained so far from our private sector clients.
Inflation seems to have peaked but remains historically high. In
addition, our margins are temporarily impacted by
higher-than-expected start-up costs in relation to a handful of new
catering contracts in France and Italy.
In this context, our expectations for the current financial year
are now as follows: – Organic revenue growth of at least 10% –
Adjusted EBITA margin of approximately 1% – Capital expenditure at
around 1.7% of revenue
The integration of Derichebourg Multiservices is progressing
well. The new joint organization for Elior Services and DMS in
France will be fully effective by the end of the current financial
year. Beyond this, we are intensifying and accelerating the
overhaul of our organization, in terms of both structures and
operations. To date, in France, these combined initiatives
represent recurring cost reductions totaling 24 million euros per
annum, starting next fiscal year.
Conference call
The third-quarter 2022-2023 revenue presentation will take place
on Tuesday the 25th of July at 3.00 pm CEST and can be accessed
online or by phone. Participants may only ask questions by
phone.
Webcast link:
https://channel.royalcast.com/landingpage/eliorgroup/20230727_1/
Conference call numbers: - France: +33 (0) 1 70 37 71 66 - UK:
+44 (0) 33 0551 0200 - US: +1 786 697 3501
Access code: Elior Please join at least 10 minutes before the
presentation is scheduled to start.
Financial calendar
- Wednesday November 22, 2023: results for fiscal year 2022-2023,
press release published before the start of trading, conference
call to follow.
Appendix
Appendix 1: Revenue by operating segment Appendix 2: Pro forma
revenue by operating segment Appendix 3: Definition of alternative
performance indicators
About Elior Group
Founded in 1991, Elior Group has grown into one of the world's
leading operators in contract catering and support services and has
become a benchmark player in the business & industry,
education, healthcare, and leisure markets. With strong positions
in eight countries, the Group generated €5.2 billion in pro forma
revenue in fiscal 2022. Our 134,000 employees feed over 3 million
people daily in 20,500 restaurants on three continents and offer
services in six countries.
Innovation and social responsibility are at the core of our
business model. Elior Group has been a member of the United Nations
Global Compact since 2004, reaching the GC Advanced Level in
2015.
For further information please visit our website at
www.eliorgroup.com or follow us on Twitter (@Elior_Group)
Appendix 1: Revenue by operating segment
1st quarter (restated)
Q1
Q1
Organic
Change in
Currency
Total
(in € millions)
2022-23
2021-22
growth
scope
effect
Growth
Contract Catering
1,071
964
13.3 %
-5.6 %
3.4 %
11.1 %
Multiservices
150
148
1.4 %
-
-
1.4 %
Contract Catering &
Multiservices
1,221
1,112
11.7 %
-4.9 %
3.0 %
9.8 %
Corporate & Others
4
4
n.m.
n.m.
n.m.
n.m.
TOTAL GROUP
1,225
1,116
11.7 %
-4.9 %
3.0 %
9.8 %
2nd quarter (restated)
Q2
Q2
Organic
Change in
Currency
Total
(in € millions)
2022-23
2021-22
growth
scope
effect
Growth
Contract Catering
1,098
975
18.4 %
-6.4 %
0.7 %
12.7 %
Multiservices
152
146
4.1 %
-
-
4.1 %
Contract Catering &
Multiservices
1,250
1,121
16.5 %
-5.6 %
0.6 %
11.6 %
Corporate & Others
3
2
25.0 %
-
-
25.0 %
TOTAL GROUP
1,253
1,123
16.5 %
-5.6 %
0.7 %
11.6 %
3rd quarter
Q3
Q3
Organic
Change in
Currency
Total
(in € millions)
2022-23
2021-22
restated
growth
scope
effect
Growth
Contract Catering
1,059
1,028
9.4 %
-5.5 %
-0.9 %
3.0%
Multiservices
352
147
4.3 %
135.2 %
-
139.5 %
Contract Catering &
Multiservices
1,411
1,175
8.8 %
12.1 %
-0.8 %
20.1 %
Corporate & Others
5
5
6.6 %
-
-
6.6 %
TOTAL GROUP
1,416
1,180
8.8 %
12.0 %
-0.8 %
20.0 %
9 months
9 months
9 months
Organic
Change in
Currency
Total
(in € millions)
2022-23
2021-22
restated
growth
scope
effect
Growth
Contract Catering
3,228
2,967
13.6 %
-5.9 %
1.1 %
8.8 %
Multiservices
654
441
3.1 %
45.2 %
-
48.3 %
Contract Catering &
Multiservices
3,882
3,408
12.3 %
0.7 %
0.9 %
13.9 %
Corporate & Others
12
11
10.4 %
-
-
10.4 %
TOTAL GROUP
3,894
3,419
12.3 %
0.7 %
0.9 %
13.9 %
n.m.: not meaningful
Appendix 2: Pro forma revenue by operating segment
Revenue pro forma (*)
1st semester
(in € millions)
2022-23
Contract Catering
2 169
Multiservices
789
Contract Catering &
Multiservices
2 958
Corporate & Others
7
TOTAL GROUP
2 965
Revenue pro forma (*)
1st semester
2nd semester
12 months
(in € millions)
2021-22
2021-22
2021-22
Contract Catering
1 818
1 842
3 660
Multiservices
756
774
1 530
Contract Catering &
Multiservices
2 574
2 616
5 190
Corporate & Others
6
9
15
TOTAL GROUP
2 580
2 625
5 205
(*) Pro forma information
excludes revenues from Preferred Meals for Elior Group and SNG from
Derichebourg Multiservices (“DMS”) divested in 2022
Appendix 3: Definition of alternative performance
indicators
Organic growth in consolidated revenue: as described in
Chapter 4, Section 4.2 of the Universal Registration Document,
growth in consolidated revenue expressed as a percentage and
adjusted for the impact of (i) changes in exchange rates, (ii)
changes in accounting policies and (iii) changes in scope of
consolidation.
Retention rate: percentage of revenues retained from the
previous year, adjusted for the cumulative year-on-year change in
revenues attributable to contracts or sites lost since the
beginning of the previous year.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20230724251865/en/
Press contact Jennyfer Dellupo –
jennyfer.dellupo@eliorgroup.com / + 33 (0)6 79 51 75 65
Investor relations Philippe Ronceau –
philippe.ronceau@eliorgroup.com / +33 (0)1 71 06 78 40
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