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, reflecting transformation strategy success.

• Organic revenue growth reached 5.1%, exceeding guidance, with consolidated revenue rising to €6,053 million, up 15.9%–16.9% year-over-year, driven by acquisitions and business development.

• Adjusted EBITDA improved by €127 million to €333 million, with margin up 170 basis points to 2.8%, surpassing the 2.5% target.

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

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

Financial highlights

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

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

• Free cash flow reached €215 million, a €212 million improvement year-over-year, excluding securitization.

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

• Non-recurring charges dropped to €31 million, mainly from restructuring, down €50 million from last year.

Outlook and guidance

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

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

• Medium-term ambition: €56 million in cumulative synergies by end of 2026 and leverage below 3x.

• Margin improvement to be supported by operational efficiencies, price discipline, and positive net inflation balance, though at a lower level than previous years.

• FY2026 cost synergies target set at €44 million.