While pandemic impact persists, Elior Group is squarely
focused on the future, controlling costs and bolstering
liquidity
Regulatory News:
Elior Group (Paris:ELIOR) (Euronext Paris – ISIN: FR
0011950732), one of the world’s leading operators in catering and
support services, announces its first half results for fiscal
2020-2021, ended March 31, 2021.
First half 2020-2021 figures
- Revenues of €1.869 billion, down 22.3% on an organic basis
year-on-year,
- Sustained business development, strong increase in new business
pipeline and a stable year-on-year retention rate of 91%,
- Adjusted EBITA loss from continuing activities of €25 million,
compared with a profit of €52 million a year earlier,
- The adjusted EBITA impact from lost revenue (drop-through) was
14% at constant exchange rates, substantially better than 22% in
the second half of last year;
- Positive first half free cash flow of €31 million,
- Available liquidity at March 31, 2021 of €819 million after
obtaining a French State Guaranteed Loan (PGE) for €225 million
compared with €630 million at September 30, 2020.
Philippe Guillemot, Elior Group’s Chief Executive Officer,
said: “The Covid-19 pandemic has been impacting our businesses
since the first lockdowns were imposed in Europe and the US over a
year ago. Given that our volume trends currently depend on the
public health situation, we continue to focus our efforts on
operating costs and available liquidity. Our teams on the ground
are poised to adapt to our clients’ needs.
We are squarely focused on the future and continue to accelerate
our transformation. For example, we have just acquired Nestor, a
start-up that prepares high-quality menus for grouped delivery in
urban areas. By anticipating tomorrow’s needs, we will be well
positioned to benefit fully from the post-crisis rebound.
In the short term, with vaccination numbers rising and public
health restrictions easing to different degrees, we expect to see
contrasting business trends in the second half of the fiscal year
in the various countries where we operate.
In the medium term, once Covid-19 restrictions are lifted, I am
confident that our excellent positioning and streamlined operating
cost structure will enable us to return to solid growth and
generate even better margins than before the crisis.”
Business development
During the first half, Elior Group signed or renewed a number of
major catering and services contracts, notably:
- in France, additional Amazon site, for a total of 7, the French
Alternative Energies and Atomic Energy Commission (CEA) site in
Grenoble, the Paris offices of the National Center for Scientific
Research (CNRS) and the Ferrandi French School of Culinary Arts and
Hotel Management; Elior Services: Auvergne-Rhône-Alpes region,
Airbus University and public hospitals in Grenoble and Reims
- in the UK, with all 49 British Telecom group sites, numerous
primary and secondary schools and universities (we notably renewed
our contract with the London Business School), and the Hammerson
House residential care facility in London;
- in the US, with Western Asset Management, the Allegheny County
detention center in Pittsburgh, the Greater Springfield Senior
Services network in Massachusetts, and the various campuses of the
Texas School of Science & Technology;
- in Italy, with the WPP communication group, XPO Logistics
(Kering group partner), Balenciaga, and two hotels: Tocq in Milan
and Baia Scarlino Resort on the Tuscan coast;
- in Spain, with renewable energy group Siemens Gamesa, 53 public
schools in the Murcia region and 12 in Aragon, and the CETI migrant
reception center on the island of Tenerife.
The overall retention rate at March 31, 2021, was 91%, stable
compared with March 20201.
_____________________ 1 See definition in Appendix 6 of this
press release
Revenues
Consolidated revenue from continuing operations totaled
€1.869 billion for the first half of 2020-2021, compared with
€2.459 billion a year earlier. The 24% year-on-year decrease
reflects the 22.3% organic decline and a 1.7% currency headwind,
notably attributable to the US dollar and the pound sterling. There
was no material impact from acquisitions or divestments.
International operations accounted for 52% of revenues in the
six months ended March 31, 2021, compared with 56% a year ago.
Revenue trends by geography:
International revenue declined 28.4% to €979 million.
This change comprised a 25.3% organic decline compared with a year
earlier and a 3.1% currency headwind notably attributable to the US
dollar and the pound sterling. There was no material impact from
acquisitions or divestments. All the countries where we operate
were affected by the stricter public health measures taken since
last fall to stem a spike in the global pandemic. The UK was
particularly impacted by the strict lockdown imposed on January 4,
2021 and still mostly in place on March 31, although schools were
reopened in early March. Italy was also affected but proved more
resilient than other countries thanks to a B&I client mix
largely skewed towards the industrial sector, thus less exposed to
those working-from-home.
Revenue generated in France totaled €890 million, an
18.1% organic contraction (no material impact from acquisitions or
divestments). Business & Industry held up better than in most
other countries. Although working-from-home remains the norm when
possible, we have seen service-sector workers desire to return to
the office. The Education market stayed relatively well oriented in
the first half of the current fiscal year as the public authorities
kept schools open throughout the period.
The Corporate & Other segment, which includes the
Group’s remaining concession catering activities not sold with
Areas, generated very weak first half revenue due to state-enforced
business closures.
Revenue by market:
Business & Industry generated revenue of €618
million, a 41.5% year-on-year decline. This market remains
particularly impacted by public health measures that recommend, or
even require, working-from-home. The 36.9% organic decline in the
second quarter was smaller than in the first (-43.5%), mainly
reflecting a more favorable year-on-year comparison in the second
quarter as we lapped the one-year anniversary of the first lockdown
measures.
The Education market generated revenue of €679 million,
down 13.8% on the first half 2019-2020. This market is more
resilient than Business & Industry yet has still been impacted
by stricter public health measures in all the countries where we
operate.
The Health & Welfare market generated revenue of €572
million, down 7.0% year-on-year. Contract catering continues to
suffer from the closure of areas usually open to the public, such
as hospital cafeterias. On the other hand, Elior Services remains
resilient, thanks to solutions specifically adapted to the Covid-19
pandemic.
Adjusted EBITA and operating income from continuing
operations
Consolidated adjusted EBITA from continuing operations
for first half 2020-2021 was a loss of €25 million compared with a
€52 million profit a year earlier. Adjusted EBITA margin was -1.3%
compared with +2.1% in first half 2019-2020, reflecting the ongoing
impact of the pandemic.
Adjusted EBITA drop-through was 14% (at constant exchange
rates), a significant improvement compared to 22% in the second
half of 2019-2020, attributable to our rigorous focus and agility
in controlling operating costs.
In the International segment, adjusted EBITA was a loss
of €12 million compared with a €26 million profit in first half
2019-2020. The adjusted EBITA margin was -1.2%, compared with +1.9%
a year earlier.
In France, adjusted EBITA was a loss of €4 million
compared with a €37 million profit a year earlier. The Education
and Health & Welfare markets proved more resilient to the
pandemic than the Business & Industry market.
The Corporate & Other segment’s adjusted EBITA was a
loss of €9 million, an improvement on the €11 million loss in the
first half of last year.
Recurring operating result from continuing operations
(including the share of net result of equity-accounted investees),
came to a loss of €34 million for first half 2020-2021 compared
with a profit of €40 million a year ago.
Net financial result represents a loss of €20 million
compared with €17 million a year earlier, due to a higher average
level of debt in the first half of 2021 than in the first half of
the previous year and the cost related to the covenant holiday
obtained in November 2020.
Income tax produced a net gain of €4 million compared
with a charge of €15 million in first half 2019-2020. This is
mostly due to a €74 million decline in pretax profit year-on-year
and to a decrease in the CVAE from €9 million to €7 million.
As a result of the above factors, the net loss from
continuing operations amounted to €53 million compared with a
€2 million profit a year earlier.
The net result Group share was a €53 million loss
in first half 2020-2021 compared with a €17 million loss a year
ago.
Cash flow, debt, and liquidity
Free cash flow for the first half of 2020-2021 was €31
million compared with €42 million a year ago. The decline in EBITDA
was partly offset by lower investment expenses as well as a
positive change in working capital requirement.
Net financial debt before IFRS 16 stood at €796 million
at March 31, 2021, compared with €767 million at the end of
September 2020. Including the impact from IFRS 16, Elior Group’s
net debt was €1.038 billion compared with €995 million at September
30, 2020. The next test of the covenants governing the Group’s
senior debt and the French State Guaranteed Loan will take place at
end-2022 based on the financial results at September 30, 2022.
At end-March 2021, Elior’s available liquidity amounted to €819
million after obtaining a French State Guaranteed Loan (PGE) for
€225 million, compared with €630 million at September 30, 2020.
This includes €30 million in cash and all available undrawn
revolving credit facilities of €450 million and US$250 million
(€213 million). Remaining available credit lines amount to €126
million.
Outlook
Elior Group’s business trends remain contingent upon public
health conditions and governments’ efforts to stem the spread of
the Covid-19 pandemic. Uneven vaccination rollouts since late 2020,
mean public health restrictions are being eased at varying speeds
in the countries where we operate. For example, we foresee more
favorable conditions in the US and the UK, where first-dose
vaccination levels are well ahead of France, Italy, and Spain.
Based on what we know to date, we have used the following
assumptions for the current fiscal year to plan and make
decisions:
- Business and Industry: vaccination campaigns will
dictate when public health restrictions are relaxed and thus
determine the extent to which our volumes rebound. We already know
that any easing will be very gradual. This is a seasonal market, so
we are unlikely to see a material recovery before September. Last
year, rules were not very strict in September, so operating
performances were relatively satisfactory.
- Education: in France, the second half of this fiscal
year will be affected by the stricter health protocols imposed in
late March (entire classes are sent home as soon as 1 student tests
positive for Covid-19), by the longer spring break vacation for
primary schools, and secondary schools running at half-capacity.
The current health protocols have led to volumes dropping without
warning, which makes it hard to adjust costs. In the US, depending
on the school district, back-to-school is expected to resume
earlier than usual, while some schools may continue to use a hybrid
model of in-person and online learning.
- Health & Welfare: business is expected to remain
relatively stable through the second half. The postponement of
elective surgery, closure of hospital cafeterias, and slow recovery
in nursing home occupancy rates will remain a drag on our volumes.
Our Services business in France is expected to remain on the right
track, notably thanks to an adapted offering well-suited to health
and safety requirements.
In conclusion, we are more attentive than ever to our operating
costs; the task is more complex in the second half than in the
first half due to the strict Covid-19 protocols impacting the
Education market in France. Considering the timelines announced for
an easing of restrictions and our businesses’ inherent seasonality,
our performance in the second half will depend mainly on whether
the conditions are in place for a recovery in September. Looking to
the future, we have a streamlined business model, we continue to
accelerate our transformation by rolling out new offerings and
maintain ample liquidity—all of which will enable us to fully
benefit from the expected post-crisis recovery.
Events after the reporting date
On April 30, 2021, Elior India sold its majority stake (51%) in
CRCL to the minority shareholders of CRCL.
A conference call is scheduled for Wednesday, May 20 at 9:00 am
Paris time. The call will also be accessible by webcast on the
Elior Group website and by telephone by dialing one of the
following numbers:
France: + 33 (0) 1 33 70 37 71 66 UK: + 44 (0) 33 0551 0200 US:
+ 1 212 999 6659 Access code: Elior
Financial calendar:
- July 28, 2021: Revenue for the first nine months of fiscal
2020-2021 - press release published before the start of
trading
- November 24, 2021: Full-year 2020-2021 results - press release
published before the start of trading, conference call to
follow
Appendix 1: Revenue trends by geography Appendix 2: Revenue
trends by market Appendix 3: Adjusted EBITA by geography Appendix
4: Condensed cash flow statement Appendix 5: Consolidated financial
statements Appendix 6: Definition of alternative performance
indicators
About Elior Group
Founded in 1991, Elior Group has grown into one of the world's
leading operators in contract catering and support services and has
become a benchmark player in the business & industry,
education, healthcare and leisure markets. With strong positions in
6 countries, the Group generated €3.967 billion in revenue in
fiscal 2019-2020.
Our 105,000 employees feed over 5 million people on a daily
basis in 22,700 restaurants on three continents, and offer services
on 2,300 sites in France.
Innovation and social responsibility are at the core of our
business model. Elior Group has been a member of the United Nations
Global Compact since 2004, reaching the GC Advanced Level in
2015.
For further information please visit our website
http://www.eliorgroup.com or follow us on Twitter
@Elior_GroupFR.
Appendix 1: Revenue by geographic
segment
Q1.
Q1.
Organic
Change in scope of
Currency
Total
(in € millions)
2020-2021
2019-2020
growth
consolidation
effect
Growth
France
447
573
-22.0%
-
-
-22.0%
International
498
731
-29.1%
0.1%
-2.9%
-31.9%
Contract catering & Services
945
1,304
-26.0%
-
-1.6%
-27.5%
Corporate & Other
0
4
-89.3%
-
-
-89.3%
GROUP TOTAL
945
1,308
-26.1%
-
-1.6%
-27.7%
Q2.
Q2.
Organic
Change in scope of
Currency
Total
(in € millions)
2020-2021
2019-2020
growth
consolidation
effect
Growth
France
443
513
-13.8%
-
-
-13.8%
International
481
636
-20.9%
-
-3.5%
-24.4%
Contract catering & Services
924
1,149
-17.7%
-
-2.0%
-19.7%
Corporate & Other
0
2
-100.0%
-
-
-100.0%
GROUP TOTAL
924
1,151
-17.8%
-
-2.0%
-19.8%
H1.
H1.
Organic
Change in scope of
Currency
Total
(in € millions)
2020-2021
2019-2020
growth
consolidation
effect
Growth
France
890
1,086
-18.1%
-
-
-18.1%
International
979
1,367
-25.3%
-
-3.1%
-28.4%
Contract catering & Services
1,869
2,453
-22.1%
-
-1.7%
-23.8%
Corporate & Other
0
6
-93.3%
-
-
-93.3%
GROUP TOTAL
1,869
2,459
-22.3%
-
-1.7%
-24.0%
Appendix 2: Revenue by market
Q1.
Q1.
Organic
Change in scope of
Currency
Total
(in € millions)
2020-2021
2019-2020
growth
consolidation
effect
Growth
Business & Industry
316
570
-43.5%
-
-1.0%
-44.5%
Education
341
423
-17.7%
0.1%
-1.8%
-19.4%
Health & Welfare
288
315
-6.1%
-
-2.4%
-8.5%
GROUP TOTAL
945
1,308
-26.1%
-
-1.6%
-27.7%
Q2.
Q2.
Organic
Change in scope of
Currency
Total
(in € millions)
2020-2021
2019-2020
growth
consolidation
effect
Growth
Business & Industry
301
486
-36.9%
-
-1.1%
-38.0%
Education
339
365
-4.9%
-
-2.5%
-7.4%
Health & Welfare
284
300
-2.7%
-
-2.7%
-5.4%
GROUP TOTAL
924
1,151
-17.8%
-
-2.0%
-19.8%
H1.
H1.
Organic
Change in scope of
Currency
Total
(in € millions)
2020-2021
2019-2020
growth
consolidation
effect
Growth
Business & Industry
618
1,056
-40.4%
-
-1.1%
-41.5%
Education
679
788
-11.8%
0.1%
-2.1%
-13.8%
Health & Welfare
572
615
-4.5%
-
-2.5%
-7.0%
GROUP TOTAL
1,869
2,459
-22.3%
-
-1.7%
-24.0%
Appendix 3: Adjusted EBITA by geographic
segment
Six months ended
Adjusted EBITDA
(in € millions)
March 31
Change in
margin
2021
2020
Adjusted EBITA
2021
2020
France
(4)
37
(41)
(0.4)%
3.4%
International
(12)
26
(38)
(1.2)%
1.9%
Contract Catering & Services
(16)
63
(79)
(0.8)%
2.6%
Corporate & Others
(9)
(11)
2
-
-
TOTAL GROUP
(25)
52
(77)
(1.3)%
2.1%
Appendix 4: Condensed cash flow
statement
(in € millions)
Six months ended March 31,
2021 Non audited
Six months ended March 31,
2020 Non audited
EBITDA
57
135
Purchases of and proceeds from sale of
property, plant and equipment and intangible assets
(29)
(53)
Change in operating working capital
12
(38)
Other cash flows from operating
activities
(11)
(4)
Operational Free cash flow
29
40
Tax reimbursed (paid)
2
2
Free cash flow
31
42
Appendix 5: Consolidated financial
statements
Consolidated Income Statement
(in € millions)
Six months ended March 31,
2021 Non audited
Six months ended March 31,
2020 Non audited
Revenue
1,869
2,459
Purchase of raw materials and
consumables
(578)
(797)
Personnel costs
(1,003)
(1,232)
Share-based compensation expense
-
(2)
Other operating expenses
(195)
(250)
Taxes other than on income
(36)
(43)
Depreciation, amortization and provisions
for recurring operating items
(81)
(84)
Net amortization of intangible assets
recognized on consolidation
(9)
(10)
Recurring operating profit/(loss)from
continued operations
(33)
41
Share of profit/(loss) of equity-accounted
investees
(1)
(1)
Recurring operating profit/(loss) from
continued operations including share of profit/(loss) of
equity-accounted investees
(34)
40
Non-recurring income and expenses, net
(3)
(6)
Operating profit/(loss) from continued
operations including share of profit/(loss) of equity-accounted
investees
(37)
34
Financial expenses
(26)
(20)
Financial income
6
3
Profit/(loss) from continued operations
before income tax
(57)
17
Income tax
4
(15)
Net profit/(loss) for the period from
continued operations
(53)
2
Net loss for the period from
discontinued operations
(3)
(20)
Net loss for the period
(56)
(18)
Attributable to:
Owners of the parent
(53)
(17)
Non-controlling interests
(3)
(1)
(in €)
Six months ended March 31,
2021 Non audited
Six months ended March 31,
2020 Non audited
Earnings/(loss) per share
Earnings/(loss) per share for the
period from continued operations
basic
(0.29)
0.02
diluted
(0.29)
0.02
Earnings/(loss) per share the period
from discontinued operations or being sold
basic
(0.02)
(0.12)
diluted
(0.02)
(0.12)
Total Earnings/(loss) per share
basic
(0.31)
(0.10)
diluted
(0.31)
(0.10)
Consolidated Balance sheet - Assets
(in € millions)
At March 31, 2021 Non
audited
At September 30, 2020
Audited
Goodwill
1,720
1,719
Intangible assets
210
221
Property, plant and equipment
295
314
Right of Use Asset
248
238
Other non-current assets
4
6
Non-current financial assets
111
111
Equity-accounted investees
-
-
Fair value of derivative financial
instruments (*)
-
-
Deferred tax assets
82
74
Total non-current assets
2,670
2,683
Inventories
92
102
Trade and other receivables
583
625
Contract assets
-
-
Current income tax assets
10
14
Other current assets
58
54
Short-term financial receivables
4
3
Cash and cash equivalents (*)
32
41
Assets classified as held for sale
23
17
Total current assets
802
856
Total assets
3,472
3,539
(*) Included in the calculation of net
debt
Consolidated Balance sheet: Equity and
liabilities
(in € millions)
At March 31, 2021 Non
audited
At September 30, 2020
Audited
Share capital
2
2
Retained earnings and other reserves
1,106
1,152
Translation reserve
(23)
(19)
Non-controlling interests
(5)
(3)
Total equity
1,080
1,132
Long-term debt (*)
803
781
Lease Liabilities - IFRS 16 (*)
201
192
Fair value of derivative financial
instruments (*)
3
6
Non-current liabilities relating to share
acquisitions
14
18
Deferred tax liabilities
-
-
Provisions for pension and other
post-employment benefit obligations
91
96
Other long-term provisions
24
23
Other non-current liabilities
-
-
Total non-current liabilities
1,136
1,116
Trade and other payables
486
448
Due to suppliers of non-current assets
11
11
Accrued taxes and payroll costs
484
536
Current income tax liabilities
6
1
Short-term debt (*)
3
2
Lease Liabilities - IFRS 16 (*)
61
58
Current liabilities relating to share
acquisitions
2
2
Short-term provisions
118
130
Contract liabilities
41
62
Other current liabilities
17
21
Liabilities classified as held for
sale
27
20
Total current liabilities
1,256
1,291
Total liabilities
2,392
2,407
Total equity and liabilities
3,472
3,539
(*) Included in the calculation of net
debt
1,038
998
Net debt excluding fair value of
derivative financial instruments and debt issuance costs
1,038
995
Consolidated cash flow statement
(in € millions)
Six months ended March 31,
2021 Non audited
Six months ended March 31,
2020 Non audited
Cash flows from operating activities –
continuing operations
Recurring operating profit/(loss)
including share of profit/(loss) of equity-accounted investees
(34)
40
Amortization and depreciation (1)
93
95
Provisions
(2)
-
EBITDA
57
135
Change in operating working capital
12
(38)
Interest and other financial expenses
paid
(18)
(11)
Tax reimbursed (paid)
2
2
Other
(11)
(4)
Net cash from operating activities -
continuing operations
42
84
Cash flows from investing activities -
continuing operations
Purchases of property, plant and equipment
and intangible assets
(32)
(55)
Proceeds from sale of property, plant and
equipment and intangible assets
3
2
Purchases of financial assets
(1)
(1)
Proceeds from sale of financial assets
-
-
Acquisitions of shares in consolidated
companies, net of cash acquired
-
(4)
Other cash flows related to investing
activities
-
-
Net cash used in investing activities –
continuing operations
(30)
(58)
Cash flows from financing activities –
continuing operations
Dividends paid to owners of the parent
-
-
Purchases of own shares
-
(21)
Proceeds from borrowings
231
732
Repayments of borrowings
(215)
(3)
Repayments of lease liabilities
(32)
(28)
Net cash from/(used in) financing
activities – continuing operations
(16)
680
Effect of exchange rate and other
changes
(2)
-
Net increase/(decrease) in cash from
continued operations
(6)
706
Net increase/(decrease) in cash from
discontinued operations
(4)
(6)
Net cash and cash equivalents at
beginning of period
40
76
Net cash and cash equivalents at end of
period
30
776
(1) Including €1 million in amortization
of advances on customer contracts for the six months ended March
31, 2021 and March 31, 2020.
Appendix 6: Definition of Alternative
Performance Indicators
Organic growth in consolidated revenue: as described in
Chapter 4, Section 4.2 of the fiscal 2018-2019 Universal
Registration Document, growth in consolidated revenue expressed as
a percentage and adjusted for the impact of (i) changes in exchange
rates, (ii) changes in accounting policies and (iii) changes in
scope of consolidation.
Retention rate: percentage of revenues retained from the
previous year, adjusted for the cumulative year-on-year change in
revenues attributable to contracts or sites lost since the
beginning of the previous year.
Adjusted EBITA: Recurring operating result reported
including the share of net result of equity-accounted investees
adjusted for the impact of share-based compensation expense (stock
options and performance shares granted by Group companies) and net
amortization of intangible assets recognized on consolidation.
The Group considers that this indicator best reflects the
operating performance of its businesses as it includes the
depreciation and amortization arising as a result of the capex
inherent to the Group’s business model. It is also the most
commonly used indicator in the industry and therefore permits
comparisons between the Group and its peers.
Adjusted EBITA margin: Adjusted EBITA as a percentage of
consolidated revenue.
Operating free cash flow: The sum of the following items
as defined in the 2018-2019 Universal Registration Document and
recorded either as individual line items or as the sum of several
individual line items in the consolidated cash flow statement:
- EBITDA.
- Net capital expenditure (i.e. amounts paid as consideration for
property, plant and equipment and intangible assets used in
operations less the proceeds received from sales of these types of
assets).
- Change in net operating working capital.
- Other cash movements, which primarily comprise cash outflows
related to (i) non-recurring items in the income statement and (ii)
provisions recognized for liabilities resulting from fair value
adjustments recognized on the acquisition of consolidated
companies.
This indicator reflects cash generated by operations.
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version on businesswire.com: https://www.businesswire.com/news/home/20210519005911/en/
Press Thibault Joseph – Thibault.Joseph@eliorgroup.com /
+33 (0)6 23 00 16 93
Investor relations Kimberly Stewart –
Kimberly.Stewart@eliorgroup.com / +33 (0)1 71 06 70 13
Grafico Azioni Elior (EU:ELIOR)
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Da Mar 2024 a Apr 2024
Grafico Azioni Elior (EU:ELIOR)
Storico
Da Apr 2023 a Apr 2024
