Elis (ELIS) Q4 2023 TU earnings summary

Executive summary

• FY 2023 revenue reached €4,309.4m, up 12.8% reported and 11.8% organically; Q4 organic growth was 8.1%.

• Estimated FY performance exceeded October targets; 2024 was expected to bring another year of profitable growth, with detailed guidance due March 7, 2024.

Financial highlights

• Adjusted EBITDA margin was estimated at ~34.2%, up ~120 bps YoY and ~€215m versus 2022.

• Estimated free cash flow was slightly above €300m, up ~€75m YoY, supported by strong year-end cash collection despite an unfavorable calendar effect.

• Adjusted EBIT, headline net income and diluted headline EPS were expected above October targets, supported by stronger EBITDA.

Outlook and guidance

• 2024 visibility was good for pricing, activity forecasts, salary negotiations, purchasing contracts, revenue and costs; further improvement in main financial indicators was expected.

• Minimum-wage increases were factored into implemented or scheduled pricing adjustments; virtually 100% of 2024 energy volumes were hedged.

• Client discussions indicated no significant activity slowdown across markets and geographies; detailed financial guidance was scheduled for March 7, 2024.