PARIS--(BUSINESS WIRE)--Regulatory News:
At its meeting on November 16, 2017, the Board of Directors examined Elior Group’s (Paris:ELIOR) unaudited preliminary financial information, as presented by Management, including for the fourth fiscal quarter ended September 30, 2017. Based on this information, Elior Group (Euronext Paris – ISIN: FR 0011950732), one of the world’s leading operators in the catering and support services industry, has revised its guidance for FY 2016-2017, which is now as follows:
- Reported revenue growth of around 8.9%.
- Organic growth of approximately 3.6% excluding the effect of voluntary contract exits (which is estimated to be 130 basis points)1.
- Adjusted EBITDA margin of 8.3%2 (including a 5 basis-point dilutive impact of acquisitions carried out during the fiscal year), corresponding to a near-6% increase in adjusted EBITDA compared with FY 2015-2016.
____________________
1 Higher than the
previously-announced target of organic growth of at least 3% excluding
the effect of voluntary contract exits, which was expected to be less
than 150 basis points.
2 Lower than the
previously-announced target of a 20 to 30 basis-point increase in
adjusted EBITDA margin compared with the 8.5% reported for FY 2015-2016
(based on a constant scope of consolidation).
The target of significant growth in adjusted earnings per share will not be met.
The revision primarily reflects:
- Start-up costs for new contracts, notably with the Italian Ministry of Defense and in the education segment in France.
- The impact of Hurricane Irma in September, both on the contract catering and concession catering businesses.
- The fact that action and cost-saving plans made less of a contribution than expected, as it was thought that their benefits would start feeding through in the fourth quarter.
Full details of the Group’s FY 2016-2017 results and its outlook for FY 2017-2018 will be published on December 6, 2017 and will be commented on during a press conference.
At its next meeting on December 5, 2017, the Board of Directors intends to appoint Philippe Guillemot as Elior Group’s new Chief Executive Officer.
Philippe Guillemot has the undisputed ability to strengthen organizational structures, rally people around clear objectives and pursue the transformation process already launched, all of which will be essential assets for the Group. At the same time, his knowledge of major decentralized and international corporations will be particularly useful for continuing to accelerate the Group’s internationalization strategy.
The new Chief Executive Officer will be responsible for drawing up the Group’s medium- and long-term road map and setting the related financial targets, all in line with the overall strategy set by the Board of Directors.
The Group remains confident in its development prospects, both for its contract catering and concession catering businesses. Its growth potential is significant, thanks to its solid fundamentals and the major opportunities that are available in its markets.
A conference call will be held today at 8:30 a.m. (CET). To connect up to the call please dial one of the following numbers:
- From France: + 33 (0)1 76 77 22 75
- From the United Kingdom: +44
(0)33 0336 9105
- From the United States: +1 323 794 2093
Access
code: 2179589
Appendix 1: Definition of alternative performance indicators
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 has become 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 people 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: Definitions of alternative performance indicators
Organic growth in consolidated revenue: Growth in consolidated revenue expressed as a percentage and adjusted for the impact of (i) changes in exchange rates, using the calculation method described in Chapter 4, Section 4.1.4.1 of the FY 2015-2016 Registration Document, and (ii) other-than-marginal changes in scope of consolidation.
Adjusted EBITDA: Reported EBITDA as defined above adjusted for the impact of stock options and free shares granted by Group companies.
Adjusted EBITDA margin: Adjusted EBITDA as a percentage of consolidated revenue.
Adjusted earnings per share: This indicator is calculated based on consolidated profit for the period attributable to owners of the parent adjusted for non-recurring items net of the income tax effect calculated at the Group’s standard tax rate of 34% and amortization of intangible assets recognized on consolidation (mainly customer relationships).
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