In This Article:
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Revenue: EUR4.6 billion, up 6.1% year-on-year, with 5.2% organic growth.
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EBITDA: EUR1.6 billion, up 9.2%, with a margin increase of 100 basis points to 35.2%.
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EBIT: EUR733 million, up 7.3%, with a margin increase of 20 basis points to 16%.
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Net Income: EUR338 million, up 29% year-on-year.
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Free Cash Flow: EUR346 million, up 14% year-on-year.
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Return on Capital Employed (ROCE): 14.5%, up 60 basis points.
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Financial Leverage Ratio: Decreased by 0.2 times to 1.85 times.
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Clean Room Revenue: EUR255 million, up 11% year-on-year.
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Pest Control Revenue: EUR75 million, up 24% year-on-year.
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France Revenue Growth: 3.3% organic growth, with an EBITDA margin of 41.8%.
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Central Europe Revenue Growth: 12.3%, with an EBITDA margin improvement of 180 basis points to 32.3%.
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UK and Ireland Revenue Growth: 4.3% organic growth, with an EBITDA margin improvement of 90 basis points to 31.6%.
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Latin America Revenue Growth: 8.7% organic growth, with an EBITDA margin increase of 50 basis points to nearly 35%.
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Southern Europe Revenue Growth: 5.4% organic growth, with an EBITDA margin up 130 basis points to 32.6%.
Release Date: March 06, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Elis SA (FRA:7EL) achieved record financial performance in 2024, with a 6.1% revenue growth reaching nearly EUR4.6 billion.
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EBITDA increased by 9.2% to EUR1.6 billion, with a margin improvement of 100 basis points to 35.2%.
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The company reported a significant 29% increase in net income, reaching EUR338 million.
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Free cash flow reached a record EUR346 million, showing a 14% improvement year-on-year.
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Elis SA's return on capital employed reached a record level of 14.5%, with a 60 basis point improvement.
Negative Points
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The hospitality sector underperformed due to the negative impact of the Paris Olympics on activity.
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The EBITDA margin in Scandinavia and Eastern Europe declined by 120 basis points, despite remaining at a high level.
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The company faced challenges in pricing negotiations, particularly in Denmark and with public healthcare customers.
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Elis SA's stock price has not reflected its operational and financial performance, with valuation multiples significantly lower than in 2019.
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The company anticipates a slight increase in costs, particularly in labor, with a projected 4% rise in wage expenses for 2025.
Q & A Highlights
Q: You announced a new capital allocation policy with a share buyback. If you don't achieve the targeted bolt-ons, would you increase buybacks or dividends to reach the target leverage? A: Yes, if we have fewer bolt-ons, we will have more funds to return to shareholders. We will decide between exceptional dividends or share buybacks based on market conditions. (Xavier Martire, CEO)