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Elior Group reports nine-month performance in line with forecasts

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PARIS, France — Elior Group, one of the world’s leading operators in the catering and support services industry, has released its consolidated revenue figures for the first nine months of fiscal 2018-2019, corresponding to the nine months ended June 30, 2019.

Consolidated revenue from continuing operations totaled €3,852 million for the first nine months of 2018-2019. The 1.1 % year-on-year increase includes (i) negative organic growth of 0.8%, (ii) 1.6% in acquisition-led growth, (iii) a favorable 1.3% currency effect, and (iv) a negative 0.9% impact from the change in accounting policy related to the first-time application of IFRS 15.

The proportion of revenue generated by the international operations of Elior Group was 55% in the first nine months of 2018-2019, on a par with the same period of 2017-2018.

Revenue for the international segment rose 1.4% to €2,111 million. Organic growth for the period was a negative 2.7%, recent acquisitions added 2.8% to growth, mainly in the United States, and the currency effect was a positive 2.4%.

  • In Italy, revenue was impacted by the Group’s decision not to renew a number of major public sector contracts. However, sales momentum is promising in the private sector and in new market segments.
  • In the United Kingdom, revenue declined due to the termination of a contract with the Ministry of Defense.
  • In the United States, growth remained limited for the first nine months of 2018-2019, due to the loss of a contract with the Alabama Department of Social Services, and despite a slight acceleration in the third quarter.
  • In Spain, the ramp-up of new contracts in the business & industry market more than offset the effect of site closures in the education market.

Revenue generated in France by Elior Group totaled €1,723 million, with organic growth of 1.4%.

  • The business & industry market was buoyed by good performances from existing sites.
  • Revenue in the healthcare market was led by a good level of client retention and robust business development.
  • In the education market, revenue retreated year on year due to the Group’s more selective sales policy.

The Corporate & Other segment posted €19 million in revenue in the first nine months of 2018-2019. This figure includes the concession catering activities that were not included in the Areas sale, essentially corresponding to operations in the city sites market.