Elis (ELIS) H1 2024 earnings summary

Executive summary

• Achieved strong H1 2024 results with revenue up 6.9% to €2,246.7m, organic growth of 5.5%, and record EBITDA margin of 34.5%, driven by robust commercial momentum, pricing discipline, and operational efficiencies.

• Upgraded full-year organic growth and EBITDA margin guidance, maintaining all other objectives.

• Commercial momentum supported by new contracts, outsourcing trends, and high customer retention; productivity gains and logistics optimization contributed to margin expansion.

• M&A activity included the acquisition of Moderna (Netherlands) and Wonway (Malaysia), expanding geographic reach and cleanroom market leadership.

Financial highlights

• Revenue: €2,246.7m (+6.9% YoY; +5.5% organic), adjusted EBITDA: €774.3m (+10.9%), margin 34.5% (+120bps), adjusted EBIT: €343.6m (+8.6%), margin 15.3% (+20bps).

• Headline net income per share: €0.83 (+1.6% YoY); headline net income: €208.7m (+0.9% YoY); net income: €119.1m (-14.1% YoY).

• Free cash flow improved to €55.5m in H1, up €39m year-over-year.

• Financial leverage at 2.06x as of June 30, 2024, on track for 1.8x full-year target.

• CapEx at 19.2% of sales, mainly for linen, in line with full-year estimates.

Outlook and guidance

• Upgraded organic growth guidance to 5.2–5.5% (from ~5%) and adjusted EBITDA margin to 35.2–35.5% (from ~35%).

• Adjusted EBIT margin expected stable YoY at ~16%; headline net income per share expected above €1.75; free cash flow target at ~€340m.

• Financial leverage ratio expected to decrease by 0.2x by year-end.

• All other March objectives confirmed; full-year net result expected significantly above 2023.

• Free cash flow guidance remains conservative due to higher linen CapEx and cautious EBIT/EPS outlook.