Elis (ELIS) Q3 2024 TU earnings summary

Executive summary

• Q3 2024 revenue increased by 5.5%, with organic growth at 4.9%, supported by strong commercial initiatives and favorable pricing across geographies.

• Hospitality segment underperformed due to lower occupancy rates, especially in France and the UK, impacted by the Olympic and Paralympic Games.

• Full-year 2024 objectives reaffirmed, including organic growth, EBITDA margin, and net income per share targets.

• M&A activity continued with the first acquisition in Asia (Wonway, Malaysia) and ongoing evaluation of small-sized acquisitions.

Financial highlights

• Q3 2024 total revenue reached €1,184.9m, up from €1,123.3m in Q3 2023 (+5.5% reported, +4.9% organic).

• Nine-month 2024 revenue totaled €3,431.6m, up 6.4% year-over-year.

• Adjusted EBITDA margin for 2024 expected between 35.2% and 35.5%.

• Adjusted EBIT margin stable year-over-year at approximately 16%.

• Headline net income per share projected above €1.75 (fully diluted).

Outlook and guidance

• Full-year 2024 organic revenue growth expected between 5.2% and 5.5%.

• Free cash flow forecasted at approximately €340m.

• Financial leverage ratio targeted at around 1.8x by year-end, down 0.2x from December 2023.