Elior Group (ELIOR) H2 2024 earnings summary

Executive summary

• Achieved strong recovery in profitability and positive free cash flow following the merger with Derichebourg Multiservices (DMS) in April 2023, with EBITA up €108 million (183%) year-over-year.

• Organic revenue growth of 5.1% at the top end of guidance, with consolidated revenue reaching €6,053 million, up 15.9%–16.9% year-on-year.

• Adjusted EBITDA improved by €127 million to €333 million, with margin up 170 bps to 2.8%.

• Free cash flow turned positive at €215 million, supporting a €124 million reduction in net debt and improved liquidity.

• Synergies and cost optimization contributed €36 million in annualized savings by end-September 2024.

Financial highlights

• Consolidated revenue rose to €6,053 million from €5,223 million, driven by organic growth (+5.1%), acquisitions, and limited currency impact.

• Adjusted EBITA increased to €167 million (from €59 million), with margin up to 2.8% from 1.1%.

• Net income loss reduced to €41 million; adjusted net profit turned positive at €9 million.

• Free cash flow reached €215 million, a €212–273 million improvement year-on-year.

• Net debt decreased by €124 million to €1,269–1,270 million; leverage ratio reduced to 3.8x EBITDA.

Outlook and guidance

• Organic growth expected between 3% and 5% for 2024-2025.

• Adjusted EBITDA/EBITA margin targeted above 3%; leverage ratio below 3.5x by September 2025 and below 3.0x by September 2026.

• Medium-term ambition: €44–56 million in cumulative synergies by 2026.

• Margin improvement to be supported by operational efficiencies, price discipline, and positive net inflation balance.

• Continued focus on deleveraging, profitability, and free cash flow generation.