In This Article:
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Organic Revenue Growth: 5.1% increase.
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EBITDA: Improved by EUR127 million to EUR333 million.
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Adjusted EBITDA Margin: Increased by 170 basis points to 2.8%.
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Free Cash Flow: Positive EUR215 million.
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Leverage Ratio: Reduced to 3.8 times EBITDA.
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Consolidated Revenue: Exceeded EUR6 billion, up 16.9% year-on-year.
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Net Income: Loss of EUR41 million, adjusted net profit of EUR9 million.
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CapEx: EUR98 million, 1.6% of revenue.
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Net Debt: Decreased by EUR124 million to EUR1,269 million.
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Available Liquidity: EUR394 million.
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Contract Catering Revenue Growth: 5.5% increase.
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Multiservices Revenue Growth: 4.1% increase.
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Price Increases: Average 5.4% in France.
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Annualized Synergies: EUR36 million achieved.
Release Date: November 20, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Elior Group SA (STU:21E) achieved a strong recovery in profitability for the fiscal year 2023/2024, with a significant improvement in EBITDA by EUR127 million, reaching EUR333 million.
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The company recorded a positive free cash flow of EUR215 million, contributing to a reduction in the leverage ratio to 3.8 times EBITDA, comfortably below the bank covenant.
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Consolidated revenue increased by 16.9% year-on-year, driven by solid organic growth of 5.1% and contributions from acquisitions.
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Elior Group SA (STU:21E) successfully implemented cost synergies and operational efficiencies, resulting in a cost reduction of EUR55 million in 2024.
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The company has developed a new ESG roadmap, 'Aimer sa terre for Horizon 2030,' focusing on social and environmental ambitions, with significant progress in reducing food waste and greenhouse gas emissions.
Negative Points
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Net income stood at a loss of EUR41 million, although this was a significant reduction compared to the previous year.
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Net financial charges increased to minus EUR105 million, reflecting higher average net debt and interest rates.
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The retention rate decreased slightly from 93.6% last year to 92.7% this year, indicating some challenges in retaining contracts.
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The company faced nonrecurring charges of minus EUR31 million, mainly related to restructuring plans and reorganization efforts.
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There is uncertainty in the macroeconomic context, including potential impacts from labor costs and social charges, which could affect future profitability.
Q & A Highlights
Q: Adjusted for exits, retention came down from 93.6% last year to 92.7% this year. Could you provide some color on this, and how should we look at retention next year? Are there more exits incorporated in your 3% to 5% organic growth guidance? A: Retention was calculated for all activities, including multiservices, based on 2023 revenue pro forma. Facility services historically have a lower retention rate than contract catering. The US retention was slightly lower than last year but still above average. Despite a lower retention rate, we recorded one of the highest net development balances, favoring margin improvement over revenue growth. For next year, we expect limited impact from contract exits on our organic growth guidance.