Elior Group 2021
Elior Group operates in industries with strong fundamentals. It has solid positions and strong assets in contract catering, services and concession catering, in all the geographies where we operate. This is the result of our history, one of continuous successes, rapid growth and constant innovation. Throughout the Group, employees are committed and proud to fulfill their mission.
Lately the Group had lost its recipe for success. However, today with Elior Group 2021 we are turning the page and opening a new chapter. Over the next three years we will consolidate our existing competitive positions while focusing on expanding our fast-growing businesses, particularly in the USA where we see substantial opportunities ahead.
We now have the right organization and team. We are implementing the right processes to enhance our performance and achieve our objectives. Elior Group 2021 is the result of a collective work; it has been built by and with the teams. Together, we will strive to significantly increase free cash flow generation, a paramount priority, and we will allocate resources with discipline.
Three-year plan ambitions
The Group’s three pillars for value creation over the next years are:
- Cash flow generation;
- Focus on selected profitable growth areas;
- Development of talented and performing teams.
Clear roadmaps for all businesses
The organization has been strengthened to ensure timely execution. Each business has a clear roadmap:
- For contract catering in Continental Europe: consolidate leadership and explore new growth areas;
- For contract catering in the UK and India: outpace market growth;
- For contract catering in North America: outpace market growth and continue the build-up;
- In services: maintain profitable growth and innovate;
- In concession catering: get payback on past investments and grow selectively.
Deliverable financial ambitions
Our financial ambitions for the Group in 2021 are threefold:
- Organic growth above 3% per annum on average and external growth fueled by bolt-on acquisitions in the USA;
- Adjusted EBITA* growth double that of organic growth;
- Cumulative operating free cash flow of €750m over the period, allocated to acquisitions in the USA, deleveraging and cash return to shareholders.
* Elior Group will now communicate on adjusted EBITA (recurring operating profit reported under IFRS before amortization of intangible assets related to acquisitions and adjusted for the impact of share-based
A non-linear trajectory
The path towards these ambitions will not be linear:
- The first year will bring stabilization in EBITA margin and capex;
- In the second and third years, the operating leverage and capex reduction will gradually produce their effect on EBITA margins, operating free cash flow generation and cash conversion.