Strong business performance. Impact of preparing for the future
Elior Group reports 8.9% annual revenue growth, of which 3.6% is organic growth excluding the impact of voluntary contract exits. The United States is the Group's second-biggest revenue contributor. The adjusted EBITDA is up 5.9% and the adjusted EBITDA margin comes in at 8.3%. Adjusted earnings per share are down 2.9% to €1.02. The recommended dividend is €0.42 with a stock dividend option.
Elior Group (Euronext Paris – ISIN: FR 0011950732), one of the world's leading operators in the catering and support services industry, today released its consolidated results for FY 2016-2017, corresponding to the twelve months ended September 30, 2017.
Commenting on these results, Pedro Fontana, Elior Group's Deputy Chief Executive Officer, said, "The 2016-2017 fiscal year brought with it a number of operational challenges, which were particularly concentrated in the second half. These included an exceptionally unfavorable calendar effect for contract catering, the renewal of a significant number of our motorways contracts in France, and the continued Group-wide rollout of technological transformation programs and upgrades to our information systems. Despite this context, we pursued our expansion drive, both from a commercial standpoint and through a number of strategic acquisitions, notably in the United States. Organic revenue growth came to 3.6%, excluding the impact of voluntary contract exits, and total growth for the year was 8.9%, confirming the quality of our offerings and the strong momentum in our markets. Adjusted EBITDA rose 5.9%. The action plans drawn up to offset the adverse effects of the year's operational challenges were only partially carried out. And added to that, there was the effect of unforeseeable external events in the fourth quarter, including Hurricane Irma in the United States. Over the last three years, the Group has considerably strengthened its international presence, especially in the United States, and has reinforced its leadership positions in France, Spain and Italy. We are now well positioned in our three core activities of contract catering, services and concession catering where there are numerous opportunities to be tapped. All of our teams are ready to move forward with both rigor and enthusiasm to write a new chapter of profitable growth for the Group."