Caterer Elior sees 2024 revenue growth below estimates. The market’s expectations for the French catering company Elior’s (ELIOR.PA) 2024 financial year sales growth will be lower. It explained this by saying that volumes have returned to normal after benefiting from the Omicron catch-up effect this year.
Following lockdowns and other COVID-19-related measures, Elior was forced to reduce its margin projection twice in 2023 due to rising food and labor inflation and challenging contract talks in France.
After France’s Sodexo (EXHO.PA) and Britain’s Compass (CPG.L), Elior is the third-largest contract caterer in Europe. For the fiscal year that began in October, the company anticipates organic revenue growth of 4% to 5% and a margin for adjusted earnings before interest, taxes, and amortization (EBITA) of about 2.5%.
The business surveyed analysts, who predicted organic revenue growth of 5.9% and an EBITA margin of 2.6% in 2024. Elior’s first yearly core profit since the epidemic began was 59 million euros ($64.35 million) in the 12 months ending in September, exceeding experts’ projection of 50 million euros.
CEO Daniel Derichebourg stated, “The combined balance of the volume effect and price increases almost offsets the impact of inflation.”
Additionally, he cited the benefits of acquisitions and the enhanced outcomes from contract negotiations for catering services in France and Italy. “These difficulties are now almost completely resolved, except for one contract still under renegotiation,” Derichebourg stated.
Elior, which is now integrating Derichebourg Multiservices (DMS), which it just bought, stated that it anticipated reaching 56 million euros in annual synergies related to the deal by 2026, as opposed to its original aim of 30 million euros.
It stated that the DMS acquisition, which also brought new services in security, complex facility management, and aviation subcontracting, had improved Elior’s multiservice soft facility management offering.
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