The New Elior plan
Presented by Philippe Guillemot, Elior Group CEO, during the June 2019 Leaders Committee, the New Elior plan lays the Group’s 2024 strategy now that it is once again focused on its contract catering core business and on support services.
Why launch another growth plan one year after Elior Group 2021?
With the sale of its concession catering business under the global Areas brand, the Group has become the second pure player in contract catering and services in the world, just behind Compass.
Meanwhile, our guests’ consumption habits are changing all the time, pushing us to reinvent ourselves as a company. Those same guests, along with our clients, are expecting companies like ours to behave as a socially responsible player.
All of this requires some significant changes. We are therefore going to focus on 5 priorities, the value creation drivers for the company for the next 5 years.
Which ambitions do we have for the New Elior plan?
The planned impact of the New Elior plan is to further accelerate the momentum we created in the last 18 months. Our ambition varies from geography to geography: in Europe, be the best performing player again; in the United States, double our presence; in India, reinforce our positions.
To get there, we need to grow organically faster than the market where we operate, which means above 2%. Our goal is a range of 2 to 4% over the next few years.
We must also improve our profitability. Starting next fiscal year, we expect an increase in adjusted EBITA margin of between 10 and 30 basis points per year, while capital expenditure should remain below 3% of revenue.