Elior, solid and organized to weather out the Covid-19 crisis

Elior Group (Euronext Paris – ISIN: FR 0011950732), is providing an update on the Coronavirus (COVID-19) pandemic impact to its operations and certain preliminary first half financials 2019-2020 before IFRS 16 application.

Expected preliminary first half 2019-2020 figures:

  • Revenues of €2,459m, down 6.2% on an organic basis year-on-year
  • Adjusted EBITA of €51m compared to €122m first half last year
  • Covid-19 related impact estimated at €157m on revenues and €70m on adjusted EBITA
  • Up until the outbreak of Covid-19, Elior was well oriented to deliver its annual objectives
  • Available liquidity at March 31 of €917m and net debt leverage ratio at 2.5x versus a covenant of 4.5x

Quick and decisive action plan deployed to mitigate the impact of Covid-19:

  • Rollout of crisis governance and the war room throughout the organization
  • Protection reinforced of health and safety for employees, clients and guests
  • Supporting mobilization and engagement of teams on the front line
  • Rapid adaptation of the cost structure
  • Reinforcement of cash management discipline to minimize cash consumption
  • Securing Elior’s core-business revenues and activating new revenue streams
  • Anticipation and preparation for the recovery
  • Creation of a solidarity fund to support employees most impacted by the crisis

Following a good start to the year, our activity was severely disrupted in the course of March as a result of lockdown measures implemented in all of the countries where we operate and the ramp-up of work from home that significantly impacted our Education and Business & Industry segments. In this unprecedented situation, we have been quick to react and adapt to the new reality. Elior’s first priority is to protect the health and wellbeing of our teams, customers and guests. At the same time, Elior has mobilized to preserve our financial flexibility and maintain strict cost discipline while continuing to support our clients. Our teams have been demonstrating an exceptional commitment in this context which I would like to pay tribute to and thank them for. We have, and will continue to, implement measures to ensure business continuity across the countries where we operate with a long-term mindset that guarantees that we come out of this situation well positioned for our future.

Philippe Guillemot - Elior Group’s Chief Executive Officer