Sharp rebound in the fourth quarter leading to positive outlook for 2021–2022 and beyond, with strong ambitions for 2024
Elior Group (Euronext Paris – ISIN: FR 0011950732), one of the world’s leading operators in catering and support services, announces its unaudited full-year fiscal 2020–2021 results, ended September 30, 2021. All financials are presented after application of IFRS 16.
Elior Group CEO, Philippe Guillemot, commented: “We have just concluded fiscal 2020–2021, a year that has been totally unprecedented for the entire contract catering sector. So, first and foremost, I would like to praise the enduring commitment of Elior’s teams. They stood by our clients and guests, at the ready, to accompany and help them face this unparalleled crisis. With its sound fundamentals, Elior has done better than just weather the crisis. Not only have we maintained a sound financial base, we have also set things in motion—everywhere—to accelerate our transformation. Today, Elior is perfectly organized for a return to sustainable, profitable growth based notably on an optimized cost structure and new offers that are even more suited to market expectations.
Between July and September, Elior recorded its best quarter since the pandemic began, with revenues equivalent to 85% of those generated over the same period in 2018–2019. This reflects a more favorable operating environment as the vaccination campaigns progressed in all the countries where we operate. However, our full fiscal year 2020–2021 revenues are down slightly on 2019-2020, which was only affected by the crisis during the last seven months. Despite extremely unfavorable conditions worldwide, we managed to lower our operating loss through relentless and effective cost control efforts.
Provided the health situation remains under control, the improvement in operations should gather momentum in the coming months and despite the return of higher than expected inflation, which is already the subject of negotiations with clients of which these efforts will be more visible in the second half.
For fiscal2021–2022, we therefore expect organic growth of at least +18% and an adjusted EBITA margin of between 2.0% and 2.5%.
As we emerge from this crisis, it is clear that our New Elior 2024 strategic plan—which we initiated in 2019—was perfectly suited. Indeed, we have not only withstood the crisis and stayed on track, but we have also stepped up our transformation and are now able to seize new opportunities. By closely involving the management teams in all our geographical regions, we have put the last few months to good use reviewing our five Value Creation Drivers and revising our strategic plan. It is thanks to this collective effort, shouldered by our 99,000 employees, that we can now set ambitious goals for 2024.
At the heart of our ambition and value proposition, Elior reaffirms its CSR commitment as illustrated by our objective to reduce our carbon footprint by 12%. Food waste will be reduced by 30% and our energy mix will be 80% renewable. Priority will be given to our teams’ development and their skills to support our businesses transformation.
Embarking all our teams, Elior Group has launched a project - steered by the Executive Committee - to collectively define our “raison d'être”."