Q1 revenue up +3.6% at €1,131.9m, despite a strong negative calendar effect
2025 outlook confirmed
Q1 2025 organic revenue up +2.5%, in line with the projected yearly sequence
As expected, Q1 2025 organic growth was penalized by a c. -1.5% calendar effect, factoring in one less billing day in February and the positioning of the Easter week in April this year
The outsourcing trend continues in both standard workwear and cleanroom: Elis recorded many signatures of new contracts in both segments
Hospitality is performing well globally, despite poor weather conditions in March and the positioning of the Easter week in April
Pricing dynamics remain favourable across all geographies, offsetting the inflation of our cost base
Elis continues its strategy of targeted bolt-on acquisitions in its existing geographies
3 acquisitions contributing to the consolidated revenue since January 1, 2025: Carsan in Spain, Ernst in Germany and Bodensee in Switzerland; their combined revenue was c. 55 million euros in 2024
Q1 2025 external growth is at +2.1%
Elis’ resilient business model helps mitigate the impact of macroeconomic headwinds
The Group does not foresee any direct negative impact linked with the establishment of US tariffs, even though current commercial tensions are triggering a more cautious approach from some clients and increasing the volatility of some currencies
The geographic and sector diversification of Elis largely eased the impact of these combined headwinds
Confirmation of all financial objectives communicated on March 6, 2025
Full-year organic revenue growth expected slightly below +4%, factoring in a c. -0.3% negative calendar effect
Adjusted EBITDA margin, adjusted EBIT margin, headline net income per share (fully diluted) and free cash flow all expected slightly higher
Financial leverage ratio expected to decline c. -0.1x at December 31, 2025 vs December 31, 2024, in line with the cash allocation policy announced in March 2025
Saint-Cloud, 5 May 2025 – Elis, the global leader in circular services at work, announces, today, its revenue for the 3 months ended March 31, 2025. These figures are unaudited.
Commenting on the announcement, Xavier Martiré, Chairman of the Management Board of Elis, said:
“Elis has made a solid start to 2025, in line with our forecast: Q1 revenue is up at +3.6%, of which +2.5% organic growth, despite a strong negative calendar effect of c. -1.5%.
The performance of Q1 is driven by further development of outsourcing in our geographies and solid momentum in Hospitality across Europe. Pricing adjustments implemented in 2025, although still below 2024 levels, enable us to offset the inflation of our cost base and also contributed to quarterly performance.
Furthermore, external growth was +2.1% in Q1, driven by the contribution of 3 acquisitions in Spain, in Germany and in Switzerland, with annual combined revenue of c. 55 million euros in 2024. These acquisitions will enable the Group to strengthen its network, notably in the flat linen market in both Hospitality and Healthcare.
The instability of the global context and the current commercial tensions triggered a wait-and-see approach from some clients, resulting in a slight drop in the commercial momentum for some markets. However, Q1 2025 performance and the robustness of Elis’ economic model allow us to fully confirm the 2025 outlook we communicated on March 6.
The great resilience shown by Elis through the various recent crises, its operational know-how, its strengthened organic growth profile and its circular economy model are major assets that will help the company strengthen its leadership in all the countries in which it is present.”
I. Q1 2025 revenue
Q1 2025 reported growth breakdown
In millions of euros
2025
2024
Organic growth
External growth
FX
Reported growth
France
322.5
316.6
+1.9%
-
-
+1.9%
Central Europe
300.3
275.2
+1.9%
+7.0%
+0.3%
+9.1%
Scandinavia & East. Eur.
158.7
157.0
+1.2%
-
-0.1%
+1.1%
UK & Ireland
138.2
132.5
+2.3%
-
+2.0%
+4.3%
Latin America
107.9
114.5
+6.5%
-
-12.3%
-5.8%
Southern Europe
96.8
90.2
+4.7%
+2.6%
-
+7.3%
Others
7.7
6.4
-2.7%
+20.2%
+1.4%
+18.9%
Total
1,131.9
1,092.4
+2.5%
+2.1%
-1.0%
+3.6%
« Others » includes manufacturing entities, holdings companies and Asia. Percentage change calculations are based on actual figures.
It should be noted that calendar effects are affecting all geographies almost equally.
France
In Q1 2025, revenue was up +1.9% (entirely organic), driven by growth in workwear, both in Hospitality and Healthcare. Pricing momentum remained strong, driven by adjustments implemented to offset inflation of our workforce.
Central Europe
In Q1 2025, revenue was up +9.1% (+1.9% on an organic basis). Activity remained solid in Belgium and in the Netherlands, with a good commercial momentum. The acquisition of Moderna and Wasned in the Netherlands, respectively consolidated since March 1, 2024 and November 1, 2024, as well as the acquisitions of Ernst in Germany and Bodensee in Switzerland, whose revenues have been consolidated since January 1, 2025, contributed +7.0% to the quarterly growth of the region. In Germany, the beginning of the year was marked by some contract losses in public healthcare.
Scandinavia & Eastern Europe
In Q1 2025, revenue was +1.1% (+1.2% on an organic basis). Organic growth was penalized by Denmark, where the high competitive pressure is still leading to some contract losses. Activity is much better-oriented in Norway, where commercial momentum remained strong in workwear.
UK & Ireland
In Q1 2025, revenue was up +4.3% (+2.3% on an organic basis). UK is showing positive momentum, with many commercial successes in workwear (notably in cleanroom) and in Hospitality. Finally, the region benefits from a +2.0% positive FX impact, linked with the evolution of the British pound.
Latin America
In Q1 2025, revenue was up +6.5%, driven by further outsourcing and the success of our commercial offer. Brazil is performing particularly well, with an organic growth c. +9%. Q1 2025 revenue was down -5.8%, penalized by the strong negative effect of local currencies (-12.3% impact on quarterly growth).
Southern Europe
In Q1 2025, revenue was up +7.3% (+4.7% on an organic basis), driven by a good activity in Hospitality and further outsourcing in workwear. The acquisition of Carsan, of which revenue is consolidated since January 1, 2025 contributed +2.6% to the quarterly growth of the region.
Others
The “others” category comprises the manufacturing entities (including French household linen maker Le Jacquard Français and UK washroom appliance manufacturer Kennedy Hygiene), as well as holding companies and the Group’s activities in Asia (including Malaysia and Singapore).
II. Other information
Financial definitions
Organic growth in the Group’s revenue is calculated excluding (i) the impacts of changes in the scope of consolidation of “major acquisitions” and “major disposals” (as defined in the Document de Base) in each of the periods under comparison, as well as (ii) the impact of exchange rate fluctuations.
Adjusted EBITDA is defined as adjusted EBIT before depreciation and amortization net of the portion of grants transferred to income.
Adjusted EBITDA margin is defined as adjusted EBITDA divided by revenue.
Adjusted EBIT is defined as net income (loss) before net financial income (loss), income tax, share in net income of equity accounted companies, amortization of intangible assets recognized in a business combination, goodwill impairment losses, other operating income and expense, miscellaneous financial items (bank fees recognized in operating income) and IFRS 2 expense (share-based payments).
Adjusted EBIT margin is defined as adjusted EBIT divided by revenue.
Headline net result corresponds to net income or loss excluding extraordinary items which, due to their type and unusual nature, cannot be considered as intrinsic to the Group’s current performance.
Free cash flow is defined as adjusted EBITDA less non-cash-items and changes in working capital. purchases of linen, capital expenditures (net of disposals), tax paid, financial interest paid and lease liabilities payments.
The financial leverage ratio is the leverage ratio calculated for the purpose of the financial covenant included in the banking agreement signed in 2021: Leverage ratio is equal to Net financial debt / adjusted EBITDA, pro forma of acquisitions finalized during the last 12 months, and after synergies.
Others: Manufacturing entities, holding companies, Asia (Malaysia and Singapore)
Disclaimer
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AGM: Thursday 22 May 2025 at 3:00 pm CET - Maison des Travaux Publics - 3, rue de Berri - 75008 Paris
