Elior Group: Results A Successful First Year for the 2020 Strategy: Financial Objectives Achieved, Strategy Execution Head of Schedule

  • 3.9% revenue growth, of which 3.1% organic growth excluding the impact of voluntary contract exits
  • EBITDA1 up by 5.5% and EBITDA margin up by 20 basis points excluding the dilutive effect of the consolidation of Preferred Meals
  • 31% increase in adjusted earnings per share2
  • Recommended dividend up 31% to €0.42

PARIS--()--Regulatory News:

Elior Group (Paris:ELIOR) (Euronext Paris – ISIN: FR 0011950732), one of the world’s leading operators in the catering and related services industry, today released its consolidated results for FY 2015-2016, corresponding to the twelve months ended September 30, 2016.

Commenting on these results, Philippe Salle, the Group’s Chairman and Chief Executive Officer, stated: "One year after the launch of our 2020 strategy, we are ahead of schedule in execution, both in terms of external growth and the Group's transformation process. We achieved our financial objectives for FY 2015-2016, with organic growth of 3.1% (excluding the impact of voluntary contract exits which mainly affected contract catering), and EBITDA margin up by 20 basis points (without the dilutive effect of our most recent acquisition in the United States). And this increase in profitability is just the beginning. Going forward, we intend to continue our drive to optimize operational performance across our various markets through the rollout of the 8 projects under the Tsubaki transformation plan. We therefore expect to see more rapid profitability growth for the current fiscal year and are confident in the Group's longer term outlook."

     

(in € millions)

  FY 2015-2016   FY 2014-2015  

Year-on-year
change

Revenue 5,896 5,674 + 3.9%
EBITDA1 501 475 + 5.5%
As a % of revenue 8.5% 8.4 % + 10bps

As a % of revenue excl. the dilutive
effect of PM3

8.6% 8.4% + 20bps
Reported net result 135 107 + 26.2%
Adjusted EPS2 (in €) 1.05 0.80 + 30.7%

Dividend to be recommended at the
next AGM (in €)

  0.42   0.32   + 31.3%
 

Business development

Business development was buoyant in FY 2015-2016. The retention rate for contract catering was 93% at September 30, 2016, having risen steadily throughout the fiscal year despite the effect of the review of the contract portfolio, which mainly concerned France and Italy. A number of major contracts were won in the contract catering & services business line during the fourth quarter, including with Natixis, the Pont d’Issy inter-company restaurant and Cochin hospital in France, Four Seasons Health Care and Murrayfield Stadium in the United Kingdom, Indiana DMHA in the United States, numerous municipal schools in Spain, and Innova and Metro Cash & Carry in Italy.

Revenue

Consolidated revenue totaled €5,896 million in FY 2015-2016. The 3.9% year-on-year increase reflects (i) organic growth of 1.4% (taking into account the 1.7% negative effect of voluntary contract exits), (ii) a positive 2.6% impact from acquisition-led growth, and (iii) a negative 0.2% currency effect.

The portion of revenue generated by international operations rose to 52% in FY 2015-2016 from 50% in the previous fiscal year.

Contract catering & services revenue was up €233 million, or 5.8%, on the FY 2014-2015 figure, coming in at €4,228 million and accounting for 72% of total Group consolidated revenue.

Organic growth was 1.3%, reflecting a positive calendar effect but also the adverse impact of the Group's strategy of withdrawing from low- and non-profit-making contracts in Europe. Excluding voluntary contract exits, organic growth came to 3.4%.

The acquisitions carried out in the United States and the United Kingdom4 had a €200 million favorable effect during FY 2015-2016, and net of the impact of the sale of non-strategic operations in the education market, changes in the scope of consolidation pushed up contract catering & services revenue by an overall 4.6%.

The currency effect during the year was a negative 0.1%.

In France, organic growth was up 2.0% and revenue totaled €2,163 million.

  • In the business & industry market, revenue was buoyed by strong business development, a favorable calendar effect and an increase in average customer spend.
  • Revenue generated in the education market was up year on year thanks to both a favorable calendar effect and significantly higher restaurant attendance.
  • Revenue also rose in the healthcare market, led by the performance of existing sites.

Revenue for the international segment advanced 11.1% to €2,065 million. Organic growth for this segment was 0.6%, mainly due to the unfavorable effect of voluntary contract exits in Europe. Acquisitions in the United States and the United Kingdom generated additional growth of 10.7% during the year, whereas the currency effect was a negative 0.3%.

  • In Spain, all business units reported revenue rises, powered by good performances from existing sites as well as strong business development, particularly in healthcare and in education towards the end of the fiscal year.
  • In the United States, the pace of growth continued to pick up in the second half of the year, especially in the education market.
  • In Italy, revenue decreased due to a high number of voluntary contract exits and a more selective approach to replying to invitations to tender.
  • In the United Kingdom, revenue was boosted by the start-up of new contracts and good performance from existing sites in the healthcare and education markets.

Concession catering revenue edged back to €1,668 million in FY 2015-2016 and represented 28% of total Group consolidated revenue.

Organic growth came to 1.7% but changes in the scope of consolidation and exchange rates had negative impacts of 2.0% and 0.3% respectively.

Revenue generated in France amounted to €657 million, down 8.2% on FY 2014-2015, with changes in the scope of consolidation accounting for 1.8 % of the overall year-on-year contraction.

  • Revenue in the motorways market retreated, mainly due to works carried out following the renewal of certain contracts on the Cofiroute network, and the non-renewal of other contracts that expired. This adverse effect was partly offset by high traffic volumes during the summer period, on a same-site basis.
  • In the airports market, revenue was weighed down by the loss of the catering contract for terminals E and F at Paris-Charles-de-Gaulle airport in 2015 and the impact on tourism of the terrorist attacks in France.
  • The city sites & leisure market reported a year-on-year revenue decline due to lower numbers of visitors to sites in Paris following the terrorist attacks and an unfavorable basis of comparison with FY 2014-2015 when a number of biennial trade fairs took place. These impacts were partly offset by good business levels in the leisure sector, particularly due to the opening in June 2015 of the Bois aux Daims vacation resort village in the Vienne region.

In the international segment, 5.0% growth drove revenue up to €1,011 million for FY 2015-2016. Organic growth was 7.7% but changes in the scope of consolidation and exchange rates trimmed revenue by 2.2% and 0.6% respectively.

  • The motorways market felt the positive effects of higher traffic volumes in Spain and Portugal and the reopening of the Okahumpka service plaza in Florida (USA).
  • Revenue in the airports market was lifted by upward trends in traffic volumes in Spain, Portugal, the United States and Mexico, as well as by the opening of new points of sale in Spain, Portugal, Italy and the USA, and the launch of new concepts.

EBITDA5 and Recurring Operating Profit

Consolidated EBITDA5 rose by €26 million to €501 million and represented 8.5% of revenue (or 8.6% excluding the dilutive effect of the consolidation of Preferred Meals in the United States, up 20 basis points on FY 2014-2015).

EBITDA5 for the contract catering & services business line increased to €325 million from €304 million and represented 7.7% of revenue, up 10 basis points.

  • In France, EBITDA5 totaled €186 million and represented 8.6% of revenue, unchanged from FY 2014-2015. The improvement in profitability for the catering business achieved as a result of the rollout of the Tsubaki transformation plan was offset by higher personnel costs due to the application of new labor agreements for employees in the services business.
  • In the international segment, EBITDA5 for the contract catering & services business line advanced by €18 million to €139 million. As a percentage of revenue it widened to 6.7% from 6.5% in FY 2014-2015, with the effect of enhanced profitability in Italy and the United Kingdom more than offsetting the dilutive effect of recently-acquired companies, notably Preferred Meals in the United States. Excluding the dilutive effect of the consolidation of Preferred Meals, EBITDA margin came to 6.9%.

Concession catering EBITDA5 amounted to €183 million (versus €179 million in FY 2014-2015) and represented 11.0% of revenue, up 30 basis points year on year.

  • In France, the EBITDA5 figure contracted to €76 million from €89 million for FY 2014-2015, reflecting the revenue decline posted for the year.
  • In the international segment, EBITDA5 rose by €17 million to €108 million and EBITDA margin surged by 120 basis points to 10.6%, led by higher revenue in all regions in Europe and America. EBITDA margin stood at 10.6%.

Recurring operating profit (EBIT6) totaled €331 million in FY 2015-2016, up 7.1% year on year, in line with the rise in EBITDA. The EBIT figure includes €13 million in acquisitions intangible asset amortization (versus €8 million in FY 2014-2015).

Attributable Profit for the Period

Non-recurring items represented a net expense of €50 million, breaking down as follows: (i) an aggregate €35 million in restructuring costs recorded in France, Italy, Spain and the United States, (ii) €9 million in losses on sales of non-strategic assets and closures of non-profit making sites, and (iii) €5 million in acquisition-related costs. These amounts reflect the acceleration during the year of the implementation of the Group’s acquisition strategy and the measures put in place under the Tsubaki transformation plan.

At €63 million, net financial expense was considerably lower than in FY 2014-2015, primarily due to (i) the debt refinancing carried out in December 2014, May 2015 and May 2016, (ii) the better financial conditions obtained for the Group's euro-denominated senior debt in December 2015, and (iii) lower interest rates. The FY 2015-2016 figure also includes €14 million in non-recurring expenses arising on the early redemption in May 2016 of the Group’s high yield notes.

The Group's income tax expense rose to €74 million from €68 million and the applicable tax rate was 34%, including the CVAE contribution. The year-on-year decrease in the tax rate was mainly due to lower effective tax rates in certain countries (notably Italy, as a result of the reform of the IRAP regional tax).

The Group reported a €6 million loss for the period from discontinued operations, primarily relating to non-strategic operations run by Areas in Northern Europe.

Attributable profit for the period advanced 26% to €135 million in FY 2015-2016 and adjusted earnings per share 7 jumped 31% to €1.05.

Cash flow and Debt

Free cash flow8 contracted by €15 million to €173 million. This reflects the fact that the effects of the higher EBITDA figure and improved working capital before acquisitions were offset by the adverse impact on working capital of acquisitions carried out during the year, a slight rise in capital expenditure and a one-off €21 million tax payment related to prior years (which had been provisioned at September 30, 2015). Excluding non-recurring items and one-off tax payment, the conversion rate from EBITDA into free cash flow stood at 51%, against 58% in FY 2014-2015.

Net debt totaled €1,706 million at September 30, 2016, up €254 million on the September 30, 2015 figure, mainly due to the acquisitions carried out during the year for an aggregate amount of €277 million. These acquisitions corresponded to companies and assets (Cura Hospitality, ABL Management, Preferred Meals, Waterfall Catering Group and Autogrill's assets in railway stations in France) as well as long-term equity investments (Ducasse, start-ups etc.). The Group's leverage ratio9 stood at 3.2x EBITDA at September 30, 2016, compared with 3.0x one year earlier.

Outlook

As part of its 2020 strategy, the Group has embarked on a transformation process with a view to accelerating its development. Having set up and launched various Group-wide projects during the plan's first year of implementation, FY 2016-2017 should see an acceleration in the profitable growth momentum created in FY 2015-2016. Consequently, the Group's objectives for FY 2016-2017 are to achieve the following:

  • Organic growth10 of at least 3% excluding the impact of voluntary contract exits (which is expected to be less than 100 basis points). Acquisitions closed to date represented c. €250 million non-consolidated sales in FY 2015-2016
  • An EBITDA11 margin up 20 to 30 basis points compared with FY 2015-2016 (at constant perimeter)
  • A significant rise in EBITDA11 and adjusted earnings per share12.

Subsequent events

On November 21, 2016, Elior Group announced its entry into the Indian market through the simultaneous acquisitions of MegaBite Food Services and CRCL, two leading contract caterers in the business & industry market. The Group's new subsidiary – Elior India – will have over 3,500 employees and will serve 135,000 meals per day. This move into India represents the Group's first step towards expanding into emerging markets, which is one of the objectives of its 2020 strategy. India is a highly promising market with significant growth potential and a very fragmented profile. Thanks to these two acquisitions, Elior Group will be a market leader from the outset in India.

A conference will be held on Friday, December 9, 2016 at 9.30 a.m. (CET), which will also be accessible by webcast on the Elior Group website and by phone by dialing one of the following numbers:

France: + 33 (0)1 76 77 22 74
United Kingdom: + 44 33 0336 9132
United States: + 1 719 457 1036

Financial calendar:

 

  • January 27, 2017: First-quarter FY 2016-2017 revenue – issue of press release
    before the start of trading
  • May 30, 2017: First-half FY 2016-2017 results – issue of press release before
    the start of trading and conference call
  • July 28, 2017: Revenue for the first nine months of FY 2016-2017 – issue of
    press release before the start of trading

Appendix 1: Revenue by business line and geographic region
Appendix 2: Revenue by geographic region
Appendix 3: Revenue by market
Appendix 4: EBITDA by business line and geographic region
Appendix 5: EBITA by business line and geographic region
Appendix 6: Simplified cash flow statement
Appendix 7: Consolidated financial statements

The English-language version of this document is a free translation from the original, which was prepared in French. All possible care has been taken to ensure that the translation is an accurate representation of the original. However, in all matters of interpretation of information, views or opinions expressed therein, the original language version of the document in French takes precedence over this translation.

About Elior Group

Founded in 1991, Elior Group has grown into one of the world's leading operators in the catering and support services industry, and is now a benchmark player in the business & industry, education, healthcare, and travel markets.

Now operating in 15 countries, the Group generated €5,896 million in revenue through 23,000 restaurants and points of sale in FY 2015-2016. Our 120,000 employees serve 4.4 million customers on a daily basis, taking genuine care of each and every one by providing personalized catering and service solutions to ensure an innovative customer experience.

We place particular importance on corporate social responsibility and have been a member of the United Nations Global Compact since 2004. The professional excellence of our teams, as well as their unwavering commitment to quality and innovation and to providing best in-class service is embodied in our corporate motto: "Time savored".

For further information please visit our website: http://www.eliorgroup.com or follow us on Twitter: @Elior_Group

Appendix 1: Revenue by Business Line and Geographic Region

           
(in € millions)

Q1

2015-2016

Q1

2014-2015

Organic
growth (1)

Changes in
scope of
consolidation
(2)

Currency
effect (3)

Total growth

 
France 558 555 1.0% -0.5% 0.0% 0.5%
International   535   487   -0.9%   6.2%   4.6%   9.8%
Contract catering & services   1,093   1,043   0.2%   2.6%   2.1%   4.9%
France 154 168 -3.3% -5.4% 0.0% -8.8%
International   228   209   9.3%   -2.6%   2.6%   9.2%
Concession catering   382   377   3.6%   -3.9%   1.4%   1.2%
GROUP TOTAL   1,475   1,420   1.2%   0.9%   1.9%   3.9%
 
           
(in € millions)

Q2

2015-2016

Q2

2014-2015

Organic
growth (1)

Changes in
scope of
consolidation
(2)

Currency
effect (3)

Total growth
 
France 573 569 1.8% -1.0% 0.0% 0.8%
International   528   492   0.1%   7.2%   0.0%   7.3%
Contract catering & services   1,101   1,061   1.0%   2.8%   0.0%   3.8%
France 133 145 -3.0% -4.8% 0.0% -7.8%
International   211   197   10.7%   -2.4%   -1.5%   6.8%
Concession catering   344   342   4.9%   -3.4%   -0.9%   0.6%
GROUP TOTAL   1,445   1,403   2.0%   1.3%   -0.2%   3.0%
 
           
(in € millions)

Q3

2015-2016

Q3

2014-2015

Organic
growth (1)

Changes in
scope of
consolidation
(2)

Currency
effect (3)

Total growth
 
France 557 540 3.9% -0.8% 0.0% 3.1%
International   525   475   4.2%   8.7%   -2.2%   10.7%
Contract catering & services   1,083   1,015   4.0%   3.6%   -1.0%   6.7%
France 168 186 -9.3% -0.2% 0.0% -9.6%
International   258   257   4.7%   -2.0%   -2.1%   0.5%
Concession catering   427   443   -1.2%   -1.3%   -1.2%   -3.7%
GROUP TOTAL   1,509   1,458   2.4%   2.1%   -1.1%   3.5%
 
           
(in € millions)

Q4

2015-2016

Q4

2014-2015

Organic
growth (1)

Changes in
scope of
consolidation
(2)

Currency
effect (3)

Total growth
 
France 474 472 1.1% -0.5% 0.0% 0.6%
International   476   405   -1.3%   22.9%   -4.1%   17.5%
Contract catering & services   951   877   0.0%   10.3%   -1.9%   8.4%
France 202 216 -8.4% 1.6% 0.0% -6.7%
International   314   300   7.3%   -1.9%   -0.8%   4.6%
Concession catering   516   517   0.8%   -0.4%   -0.5%   -0.1%
GROUP TOTAL   1,466   1,393   0.3%   6.3%   -1.4%   5.2%
 
           
(in € millions)

12 months

2015-2016

12 months

2014-2015

Organic
growth (1)

Changes in
scope of
consolidation
(2)

Currency
effect (3)

Total growth
 
France 2,163 2,136 2.0% -0.7% 0.0% 1.3%
International   2,065   1,859   0.6%   10.7%   -0.3%   11.1%
Contract catering & services   4,228   3,995   1.3%   4.6%   -0.1%   5.8%
France 657 715 -6.3% -1.8% 0.0% -8.2%
International   1,011   963   7.7%   -2.2%   -0.6%   5.0%
Concession catering   1,668   1,679   1.7%   -2.0%   -0.3%   -0.6%
GROUP TOTAL   5,896   5,674   1.4%   2.6%   -0.2%   3.9%
 

1. Organic growth: change in revenue on a constant Group structure basis and excluding the currency effect.
2. Changes in scope of consolidation correspond to the acquisitions carried out in the United States and the United Kingdom and completed or planned divestments of non-strategic assets.
3. The currency effect stems from changes in the USD, GBP, MXN and CLP exchange rates.

Appendix 2: Revenue by Geographic Region

           
(in € millions)

Q1

2015-2016

Q1

2014-2015

Organic
growth (1)

Changes in
scope of
consolidation
(2)

Currency
effect (3)

Total growth
 
France 712 724 0.0% -1.7% 0.0% -1.6%
Other European countries 546 530 1.9% -0.4% 1.6% 3.1%
Rest of the world   217   166   3.0%   16.0%   11.4%   30.4%
GROUP TOTAL   1,475   1,420   1.2%   0.9%   1.9%   3.9%
 
           
(in € millions)

Q2

2015-2016

Q2

2014-2015

Organic
growth (1)

Changes in
scope of
consolidation
(2)

Currency
effect (3)

Total growth

 
France 707 713 0.9% -1.8% 0.0% -1.0%
Other European countries 512 510 1.5% -0.3% -0.7% 0.5%
Rest of the world   227   180   7.9%   18.0%   0.2%   26.0%
GROUP TOTAL   1,445   1,403   2.0%   1.3%   -0.2%   3.0%
 
           
(in € millions)

Q3

2015-2016

Q3

2014-2015

Organic
growth (1)

Changes in
scope of
consolidation
(2)

Currency
effect (3)

Total growth
 
France 726 727 0.5% -0.6% 0.0% -0.1%
Other European countries 558 550 3.5% -0.4% -1.5% 1.5%
Rest of the world   225   182   7.1%   21.1%   -4.1%   23.9%
GROUP TOTAL   1,509   1,458   2.4%   2.1%   -1.1%   3.5%
 
           
(in € millions)

Q4

2015-2016

Q4

2014-2015

Organic
growth (1)

Changes in
scope of
consolidation
(2)

Currency
effect (3)

Total growth
 
France 676 688 -1.9% 0.2% 0.0% -1.7%
Other European countries 518 521 1.4% 1.1% -3.1% -0.6%
Rest of the world   273   184   5.3%   44.1%   -1.5%   47.8%
GROUP TOTAL   1,466   1,393   0.3%   6.3%   -1.4%   5.2%
 
           
(in € millions)

12 months

2015-2016

12 months

2014-2015

Organic
growth (1)

Changes in
scope of
consolidation
(2)

Currency
effect (3)

Total growth

 
France 2,820 2,852 -0.1% -1.0% 0.0% -1.1%
Other European countries 2,135 2,111 2.1% 0.0% -0.9% 1.1%
Rest of the world   941   712   5.8%   25.1%   1.3%   32.2%
GROUP TOTAL   5,896   5,674   1.4%   2.6%   -0.2%   3.9%
 

1. Organic growth: change in revenue on a constant Group structure basis and excluding the currency effect.
2. Changes in scope of consolidation correspond to the acquisitions carried out in the United States and the United Kingdom and completed or planned divestments of non-strategic assets.
3. The currency effect stems from changes in the USD, GBP, MXN and CLP exchange rates.

Appendix 3: Revenue by Market

           
(in € millions)

Q1

2015-2016

Q1

2014-2015

Organic
growth (1)

Changes in
scope of
consolidation
(2)

Currency
effect (3)

Total growth
 
Business & industry 500 474 -0.3% 3.9% 2.0% 5.6%
Education 305 305 -1.0% -0.7% 1.6% -0.1%
Healthcare   288   264   2.3%   4.1%   2.9%   9.3%
Contract catering & services   1,093   1,043   0.2%   2.6%   2.1%   4.9%
Motorways 132 131 1.1% -1.7% 1.8% 1.3%
Airports 168 151 8.7% 0.1% 2.3% 11.0%
City sites & leisure   82   96   -0.8%   -13.1%   -0.4%   -14.4%
Concession catering   382   377   3.6%   -3.9%   1.4%   1.2%
GROUP TOTAL   1,475   1,420   1.2%   0.9%   1.9%   3.9%
 
           
(in € millions)

Q2

2015-2016

Q2

2014-2015

Organic
growth (1)

Changes in
scope of
consolidation
(2)

Currency
effect (3)

Total growth
 
Business & industry 497 473 1.4% 4.2% -0.4% 5.0%
Education 315 320 -0.9% -0.9% 0.3% -1.5%
Healthcare   289   268   3.0%   4.7%   0.4%   8.1%
Contract catering & services   1,101   1,061   1.0%   2.8%   0.0%   3.8%
Motorways 120 118 2.8% -1.5% 0.2% 1.6%
Airports 148 140 7.0% 0.0% -1.4% 5.6%
City sites & leisure   76   84   4.4%   -11.9%   -1.7%   -9.1%
Concession catering   344   342   4.9%   -3.4%   -0.9%   0.6%
GROUP TOTAL   1,445   1,403   2.0%   1.3%   -0.2%   3.0%
 
           
(in € millions)

Q3

2015-2016

Q3

2014-2015

Organic
growth (1)

Changes in
scope of
consolidation
(2)

Currency
effect (3)

Total growth
 
Business & industry 506 470 3.4% 5.8% -1.5% 7.6%
Education 292 278 6.3% -0.8% -0.6% 4.9%
Healthcare   285   267   3.1%   4.4%   -0.7%   6.7%
Contract catering & services   1,083   1,015   4.0%   3.6%   -1.0%   6.7%
Motorways 145 160 -8.0% -1.5% -0.2% -9.8%
Airports 188 185 3.8% 0.0% -1.9% 1.9%
City sites & leisure   94   98   0.5%   -3.4%   -1.6%   -4.4%
Concession catering   427   443   -1.2%   -1.3%   -1.2%   -3.7%
GROUP TOTAL   1,509   1,458   2.4%   2.1%   -1.1%   3.5%
 
           
(in € millions)

Q4

2015-2016

Q4

2014-2015

Organic
growth (1)

Changes in
scope of
consolidation
(2)

Currency
effect (3)

Total growth
 
Business & industry 441 444 -3.5% 5.8% -2.9% -0.7%
Education 228 166 6.9% 31.5% -0.9% 37.4%
Healthcare   281   266   1.6%   4.7%   -0.8%   5.6%
Contract catering & services   951   877   0.0%   10.3%   -1.9%   8.4%
Motorways 196 207 -3.5% -1.3% 0.0% -4.9%
Airports 220 211 5.1% 0.0% -0.8% 4.3%
City sites & leisure   99   99   0.5%   0.5%   -0.6%   0.4%
Concession catering   516   517   0.8%   -0.4%   -0.5%   -0.1%
GROUP TOTAL   1,466   1,393   0.3%   6.3%   -1.4%   5.2%
 
           
(in € millions)

12 months

2015-2016

12 months

2014-2015

Organic
growth (1)

Changes in
scope of
consolidation
(2)

Currency
effect (3)

Total growth

 
Business & industry 1,945 1,861 0.2% 4.9% -0.7% 4.5%
Education 1,139 1,069 2.1% 4.2% 0.3% 6.6%
Healthcare   1,144   1,065   2.5%   4.5%   0.4%   7.4%
Contract catering & services   4,228   3,995   1.3%   4.6%   -0.1%   5.8%
Motorways 593 615 -2.5% -1.4% 0.4% -3.6%
Airports 724 687 5.9% 0.0% -0.5% 5.4%
City sites & leisure   351   376   1.0%   -6.7%   -1.0%   -6.7%
Concession catering   1,668   1,679   1.7%   -2.0%   -0.3%   -0.6%
GROUP TOTAL   5,896   5,674   1.4%   2.6%   -0.2%   3.9%
 

1. Organic growth: change in revenue on a constant Group structure basis and excluding the currency effect.
2. Changes in scope of consolidation correspond to the acquisitions carried out in the United States and the United Kingdom and completed or planned divestments of non-strategic assets.
3. The currency effect stems from changes in the USD, GBP, MXN and CLP exchange rates.

NB: The figures for the first nine months of FY 2015-2016 have been restated due to the reclassification of non-strategic assets held by Areas Northern Europe as discontinued operations.

Appendix 4: EBITDA4 by Business Line and Geographic Region

       
(in € millions)

Q1
2015-2016

Q1
2014-2015

Y-on-y change
(€m)

Y-on-y change
(%)

 
France 49 48 1 2.0%
International   40   37   2   6.6%
Contract catering & services   89   85   4   4.0%
France 10 13 (3) -21.8%
International   14   8   6   88.7%
Concession catering   25   21   4   19.3%
Corporate   (2)   (2)   0   nm
GROUP TOTAL   111   103   8   7.4%
 
       
(in € millions)

Q2
2015-2016

Q2
2014-2015

Y-on-y change
(€m)

Y-on-y change
(%)

 
France 58 60 (2) -2.2%
International   39   37   2   5.9%
Contract catering & services   98   97   0   0.9%
France 6 5 1 4.7%
International   8   5   3   79.4%
Concession catering   14   10   4   38.8%
Corporate   (2)   (2)   0   nm
GROUP TOTAL   109   105   4   3.6%
 
       
(in € millions)

Q3
2015-2016

Q3
2014-2015

Y-on-y change
(€m)

Y-on-y change
(%)

 
France 45 39 6 16.3%
International   40   31   9   29.1%
Contract catering & services   85   70   14   22.0%
France 21 24 (3) -10.9%
International   30   27   3   8.0%
Concession catering   51   51   0   -0.8%
Corporate   (2)   (2)   0   nm
GROUP TOTAL   134   119   15   12.5%
 
       
(in € millions)

Q4
2015-2016

Q4
2014-2015

Y-on-y change
(€m)

Y-on-y change
(%)

 
France 34 37 (3) -7.3%
International   20   15   5   30.8%
Contract catering & services   54   52   1   3.9%
France 38 46 (8) -16.8%
International   55   51   4   8.8%
Concession catering   94   97   (3)   -3.4%
Corporate   0   (2)   2   nm
GROUP TOTAL   147   147   0   -0.1%
 
       
(in € millions)

12 months
2015-2016

12 months
2014-2015

Y-on-y change
(€m)

Y-on-y change
(%)

 
France 186 183 3 1.8%
International   139   121   18   15.2%
Contract catering & services   325   304   22   7.1%
France 76 89 (13) -14.5%
International   108   91   17   18.9%
Concession catering   183   179   4   2.4%
Corporate   (8)   (8)   0   nm
GROUP TOTAL   501   475   26   5.5%
 

4. Excluding the impact of stock options and performance shares.

Appendix 5: EBITA5 by Business Line and Geographic Region

       

Q1

2015-2016

Q1

2014-2015

Y-on-y change
(€m)

Y-on-y change
(%)

(in € millions)
France 39 38 1 4.1%
International   31   28   2   8.6%
Contract catering & services   70   66   4   6.0%
France 2 4 (2) -47.8%
International   3   (3)   7   nm
Concession catering   5   1   4   414.9%
Corporate   (2)   (3)   0   nm
GROUP TOTAL   73   64   8   12.9%
 
       

Q2

2015-2016

Q2

2014-2015

Y-on-y change
(€m)

Y-on-y change
(%)

(in € millions)
France 49 51 (2) -2.5%
International   30   29   1   4.3%
Contract catering & services   80   80   0   0.0%
France (1) (4) 3 -73.6%
International   (3)   (7)   4   -56.2%
Concession catering   (4)   (11)   7   -62.6%
Corporate   (3)   (2)   (1)   nm
GROUP TOTAL   73   67   5   9.0%
 
       

Q3

2015-2016

Q3

2014-2015

Y-on-y change
(€m)

Y-on-y change
(%)

(in € millions)
France 35 29 6 21.3%
International   31   23   8   32.8%
Contract catering & services   66   52   14   26.4%
France 13 15 (2) -12.0%
International   18   15   3   17.7%
Concession catering   31   30   1   3.2%
Corporate   (3)   (3)   0   nm
GROUP TOTAL   94   79   14   18.4%
 
       

Q4

2015-2016

Q4

2014-2015

Y-on-y change
(€m)

Y-on-y change
(%)

(in € millions)
France 27 27 0 -0.3%
International   11   8   3   37.4%
Contract catering & services   38   35   3   3.4%
France 32 37 (5) -12.3%
International   43   39   4   12.5%
Concession catering   75   75   0   0.4%
Corporate   (4)   (2)   (2)   nm
GROUP TOTAL   109   108   0   -0.9%
 
       

12 months

2015-2016

12 months

2014-2015

Y-on-y change
(€m)

Y-on-y change
(%)

(in € millions)
France 151 145 6 4.4%
International   102   88   14   16.1%
Contract catering & services   253   233   19   8.1%
France 46 51 (5) -10.1%
International   61   44   17   39.0%
Concession catering   107   95   12   12.6%
Corporate   (12)   (10)   (2)   nm
GROUP TOTAL   348   318   31   9.4%
 

5. Excluding the impact of stock options and performance shares.

Appendix 6: Simplified Cash Flow Statement

     

12 months
2015-2016

12 months
2014-2015

Y-on-y change
(€m)

(in € millions)
EBITDA6   501   475   26
Change in working capital   (3)   33   (36)
Net capex   (183)   (178)   (5)
Tax paid   (79)   (56)   (23)
Non-recurring cash items   (64)   (85)   (31)
Free cash flow   173   189   (15)
 

6. Excluding the impact of stock options and performance shares.

Appendix 7: Consolidated Financial Statements

Consolidated Income Statement

(in € millions)  

12 months
ended
Sept. 30, 2016

 

12 months
ended
Sept. 30, 2015

Revenue 5 896 5 674
Purchase of raw materials and consumables -1 824 -1 726
Personnel costs -2 618 -2 532
Share-based compensation expense -4 -1
Other operating expenses -889 -878
Taxes other than on income -67 -64
Depreciation, amortization and provisions for recurring operating items -153 -157
Net amortization of intangible assets recognized on consolidation   -13   -8
Recurring operating profit   328   307
Share of profit of equity-accounted investees   3   2
Recurring operating profit including share of profit of equity-accounted investees   331   309
Non-recurring income and expenses, net   -50   -27
Operating profit including share of profit of equity-accounted investees   281   281
Net financial expense   -63   -107
Profit before income tax   218   174
Income tax -74 -68
Loss for the period from discontinued operations   -6   -
Profit for the period   139   106
Attributable to owners of the parent 135   107
Attributable to non-controlling interests 3 -1
Earnings per share (in €)   0,78   0,65
 

Consolidated Balance Sheet – Assets

(in € millions)  

At Sept. 30,
2016

 

At Sept. 30,
2015

Goodwill 2,542   2,376
Intangible assets 379 294
Property, plant and equipment 575 510
Non-current financial assets 65 49
Equity-accounted investees 6 3
Fair value of derivative financial instruments
Deferred tax assets   216   223
Total non-current assets   3,782   3,455
Inventories 117 96
Trade and other receivables 933 907
Current income tax assets 25 17
Other current assets 72 59
Short-term financial receivables 10 11
Cash and cash equivalents 161 210
Assets classified as held for sale   18   6
Total current assets   1,335   1,307
Total assets 5,118 4,762
 

Consolidated Balance Sheet – Equity and Liabilities

(in € millions)  

At Sept. 30,
2016

 

At Sept. 30,
2015

Share capital 2   2
Reserves and retained earnings 1,515 1,454
Non-controlling interests   41   31
Total equity   1,557   1,486
Long-term debt 1,846 1,530
Fair value of derivative financial instruments 16 21
Non-current liabilities relating to share acquisitions 19 20
Deferred tax liabilities 74 51
Provisions for pension and other post-employment benefit obligations 113 102
Other long-term provisions 27 22
Other non-current liabilities   5    
Total non-current liabilities   2,099   1,746
Trade and other payables 730 701
Due to suppliers of non-current assets 42 24
Accrued taxes and payroll costs 557 560
Current income tax liabilities 9 29
Short-term debt 11 124
Current liabilities relating to share acquisitions 22 9
Short-term provisions 50 59
Other current liabilities 25 22
Liabilities classified as held for sale   15   2
Total current liabilities   1,461   1,530
Total liabilities 3,560 3,276
Total equity and liabilities 5,118 4,762
 

Consolidated Cash Flow Statement

(in € millions)  

12 months
ended
Sept. 30,
2016

 

12 months
ended
Sept. 30,
2015

Cash flows from operating activities        
EBITDA7   501   475
Change in working capital (3)   33
Interest paid (81) (73)
Tax paid (79) (56)
Other cash movements   (63)   (85)
Net cash from operating activities   275   294
Cash flows from investing activities      

Purchases of and proceeds from sale of property, plant and equipment and
intangible assets

(183) (178)
Purchases of and proceeds from sale of non-current financial assets (24) 2
Acquisition/sale of shares in consolidated companies   (253)   (110)
Net cash used in investing activities   (462)   (286)
Cash flows from financing activities    
Dividends paid to owners of the parent (55) (33)
Movements in share capital of the parent 2 1
Purchases of treasury shares (1) -
Dividends paid to non-controlling interests (1) (8)
Proceeds from borrowings 550 1,165
Repayments of borrowings   (352)   (1,101)
Net cash from financing activities   143   24
Effect of exchange rate and other changes 1 (24)
Net increase/(decrease) in cash and cash equivalents (41) 9
 

7. Excluding the impact of stock options and performance shares.

1 Excluding the impact of stock options and performance shares.
2 Adjusted for (i) non-recurring operating items net of tax (at the standard rate of 34%), and (ii) acquisitions intangibles amortization.
3 Preferred Meals, a U.S. company acquired by the Group and consolidated since July 1, 2016.
4 Starr Catering Group and Cura Hospitality (consolidated since October 1, 2015), ABL Management (consolidated since December 1, 2015), Preferred Meals (consolidated since July 1, 2016) and Waterfall Catering Group (consolidated since September 1, 2016).
5 Excluding the impact of stock options and performance shares
6 Including share of profit of equity-accounted investees
7 Adjusted for (i) non-recurring operating items net of tax (at the standard rate of 34%), and (ii) acquisitions intangibles amortization.
8 Defined as EBITDA + change in WCR - net capex - cash impact of tax - non-recurring cash items.
9 Calculated in accordance with the definition in the SFA: Consolidated net debt/Pro forma EBITDA adjusted for acquisitions and divestments carried out in the past twelve months.
10 Excluding changes in scope of consolidation and the currency effect.
11 Excluding the impact of stock options and performance shares.
12 Adjusted for (i) non-recurring operating items net of tax (at the standard rate of 34%), and (ii) acquisitions intangibles amortization.

Contacts

Investor relations:
Marie de Scorbiac, +33 (0)1 71 06 70 13
marie.descorbiac@eliorgroup.com
or
Media:
Anna Adlewska / Caroline Guilhaume, +33 (0)1 47 03 68 10
anna.adlewska@fticonsulting.com / caroline.guilhaume@fticonsulting.com

Contacts

Investor relations:
Marie de Scorbiac, +33 (0)1 71 06 70 13
marie.descorbiac@eliorgroup.com
or
Media:
Anna Adlewska / Caroline Guilhaume, +33 (0)1 47 03 68 10
anna.adlewska@fticonsulting.com / caroline.guilhaume@fticonsulting.com