Economia
Elis: Q3 2024 revenue
Q3 2024 revenue up +5.5%
+4.9% organic growth, driven by the Group's many commercial initiatives
Disappointing performance in Hospitality in the quarter
Full-year 2024 objectives confirmed
Q3 2024 organic revenue growth at +4.9% (+5.3% over the first nine months of the year)
Continuation of the M&A strategy and opening of a first country in Asia
Full-year 2024 objectives confirmed
Significant improvement of Elis' CSR ratings with many agencies: Ecovadis, ISS ESG and S&P Global
Saint-Cloud, 30 October 2024 – Elis, the global leader in circular services at work, today announces its revenue for the 9 months ended 30 September 2024. These figures are unaudited.
Commenting on the announcement, Xavier Martiré, Chairman of the Management Board of Elis, said:
“In Q3 2024, Elis delivered further growth, with revenue up +5.5%, of which +4.9% on an organic basis.
Commercial momentum remained solid, driven by the many initiatives launched by the Group in each country, aiming at benefitting from the organic opportunities identified locally.
Q3 revenue continued to benefit from the pricing adjustments implemented to offset cost base inflation. Furthermore, we are pleased to confirm the return to a normalized retention rate, which reflects the improvement of our quality of service and the Group's good client relationships.
In Hospitality, Q3 performance was disappointing: the Olympic and Paralympic Games penalized tourist activity with, notably, the cancellation, or the postponement of many professional events scheduled in Paris during the summer. In addition, hospitality operators seem to be focused on maintaining high prices to the detriment of occupancy rates, with a negative effect on activity, notably in France and in the UK.
Our Q3 operational performance enables us to confirm all our 2024 objectives with, notably, full-year organic revenue growth expected between +5.2% and +5.5%, 2024 EBITDA margin expected between 35.2% and 35.5%, and financial leverage ratio expected at c. 1.8x as of 31 December 2024.
The Group's operational know-how, its growth profile and its model based on the principles of the circular economy will enable Elis to continue to assert its leadership in all the countries in which it operates, while exploring all profitable growth opportunities in new geographies.”
I. Q3 2024 revenue
Reported revenue
« Others » includes Manufacturing Entities, Holdings and Malaysia.
Percentage change calculations are based on actual figures.
Q3 2024 reported growth breakdown
« Others » includes Manufacturing Entities, Holdings and Malaysia.
Percentage change calculations are based on actual figures.
9-month 2024 organic revenue growth
« Others » includes Manufacturing Entities, Holdings and Malaysia.
Percentage change calculations are based on actual figures.
France
Q3 revenue was up +3.1% (entirely organic). As expected, activity in Hospitality was penalized by the organization of the Paris Olympic and Paralympic Games, with the postponement or cancellation of many professional events and a decrease in occupancy rates over the period. However, commercial dynamism remains solid in all our markets, and we continued to record many new contract wins. Pricing momentum is also still well-oriented.
Central Europe
Q3 revenue was up +13.2% in the region (+7.6% on an organic basis). Germany and the Netherlands, the region's two main contributors, delivered quarterly organic revenue growth of above +8% and above +9% respectively, driven by further outsourcing in workwear and good pricing dynamics. The acquisition of Moderna in the Netherlands, consolidated since the beginning of March 2024, contributed +5.1% to the quarterly growth of the region.
Scandinavia & Eastern Europe
The region's revenue was up +4.8% in Q3 2024 (+3.8% on an organic basis). Commercial momentum remained good in Sweden, Norway and in the Baltics. In Denmark, the limited client losses recorded in the first half, notably in Hygiene and well-being, continued to weigh on growth.
UK & Ireland
The region's revenue was up +5.1% in Q3 2024 (+3.6% on an organic basis), driven by a favorable pricing effect in relation to the marked inflation in the region. Commercial momentum remains good in Healthcare and in workwear (standard and cleanroom), but activity was disappointing in Hospitality in August and September.
Latin America
The region delivered organic revenue growth of +8.9% in Q3, still driven by good commercial dynamism and further outsourcing. Reported revenue decreased -3.4%, resulting from the evolution of local currencies over the period (negative FX impact of -12.3% in Q3).
Southern Europe
The region's revenue was up +4.9% in Q3 2024 (+3.7% on an organic basis), with a negative calendar effect, linked to the weekly billing method in place in Portugal. Our commercial initiatives enabled us to record many new contract wins, driven by further outsourcing. In Hospitality, activity was globally disappointing in the quarter, especially in July. Finally, the acquisition of Compania de Tratamientos Levante S.L in November 2023 in the Pest Control market in Spain contributed +1.2% to the quarterly growth.
II. CSR
The circular economy at the heart of Elis' business model
Elis offers its clients products that are maintained, repaired, reused, and reemployed to optimize their usage and lifespan. The Group therefore selects its textile products based on sustainability criteria, to ensure frequent washing, and also operates repair workshops. Elis' conviction is that the circular economy model, which notably aims at reducing consumption of natural resources by optimizing the lifespan of products, is a sustainable solution to address today's environmental challenges.
The services offered by Elis represent a sustainable alternative to the simple purchase or use of products or to single-use disposable, products.
Moreover, these alternatives to a linear approach to consumption allow our clients to avoid CO2 emissions and thus contribute to the reduction of their own emissions.
The Ellen MacArthur Foundation states that the circular economy can significantly contribute to reaching Net Zero and that nearly 9 billion tons of CO2eq (i.e. 20% of world emissions) could be reduced thanks to the transition of just some key industries from the current model towards a circular economy.
Synthesis of non-financial rating
In Q3 2024, many agencies revised upward the Group's CSR rating:
Our climate commitment: ambitious 2030 climate targets
On September 4, 2023, Elis unveiled its climate roadmap and related 2030 targets, underscoring its commitment to contributing to a low-carbon society.
Elis' ambition is to achieve the following targets by 2030:
These targets have been approved by the Science Based Targets initiative (SBTi), an international reference and a partnership between the United Nations Global Compact, the World Resources Institute (WRI), the Carbon Disclosure Project (CDP) and the World Wildlife Fund for Nature (WWF). They are fully in line with the objectives of the 2015 Paris Climate Agreements to contribute to restrict global warming to less than 1.5°C compared to pre-industrial levels on scopes 1 and 2, and well below 2°C on scope 3.
These climate targets mark a new step in Elis' sustainability strategy and climate actions. The Group has worked for many years to reduce its energy consumption and CO2eq emissions.
III. Other information
Financial definitions
Geographical breakdown
Disclaimer
This press release may include data information and statements relating to estimates, future events, trends, plans, expectations, objectives, outlook and other forward-looking statements relating to the Group's future business, financial condition, results of operations, performance and strategy as they relate to climate objectives, financial targets and other goals set forth therein. Forward-looking statements are not statements of historical fact and may contain the terms “may”, “will”, “should”, “continue”, “aims”, “estimates”, “projects”, “believes”, “intends”, “expects”, “plans”, “seeks” or “anticipates” or words of similar meaning. In addition, the term “ambition” expresses an outcome desired by the Group, it being specified that the means to be deployed do not depend solely on the Group. Such forward-looking information and statements have not been audited by the statutory auditors. They are based on data, assumptions and estimates that the Group considers as reasonable as of the date of this press release and, by nature, involve known and unknown risks and uncertainties. These data, assumptions and estimates may change or be adjusted as a result of uncertainties, many of which are outside the control of the Group, relating particularly to the economic, financial, competitive, regulatory or tax environment or as a result of other factors of which the Group is not aware on the date of this press release. In addition, the materialization of certain risks, especially those described in chapter 4 “Risk management and internal control” of the Universal Registration Document for the financial year ended December 31, 2023, which is available on Elis's website ( http://www.elis.com ), may have an impact on the Group's business, financial condition, results of operations, performance, and strategy, notably with respect to these climate-related objectives, financial objectives or other objectives included in this press release. Therefore, the actual achievement of climate-related objectives, financial targets and other goals set forth in this press release may prove to be inaccurate in the future or may differ materially from those expressed or implied in such forward-looking statements. The Group makes no representation and gives no warranty regarding the achievement of any climate objectives, targets and other goals set forth in this press release. Therefore, undue reliance should not be placed on such information and statements.
This press release and the information included therein were prepared on the basis of data made available to the Group as of the date of this press release. Unless stated otherwise in this press release, this press release and the information included therein are accurate only as of such date. The Group assumes no obligation to update or revise any of these forward-looking statements, whether to reflect new information, future events or circumstances or otherwise, except as required by applicable laws and regulations.
This press release includes certain non-financial metrics, as well as other non-financial data, all of which are subject to measurement uncertainties resulting from limitations inherent in the nature and the methods used to determine them. These data generally have no standardized meaning and may not be comparable to similarly labelled measures used by other companies. The Group reserves the right to amend, adjust and/or restate the data included in this press release, from time to time, without notice and without explanation. The data included in this press release may be further updated, amended, revised or discontinued in subsequent publications, presentations and/or press releases of Elis, depending on, among other things, the availability, fairness, adequacy, accuracy, reasonableness or completeness of the information, or changes in applicable circumstances, including changes in applicable laws and regulations.
This press release may include or refer to information obtained from or established on the basis of various third-party sources. Such information may not have been reviewed, and/or independently verified, by the Group and the Group does not approve or endorse such information by including them or referring to them. Accordingly, the Group does not guarantee the fairness, adequacy, accuracy, reasonableness or completeness of such information, and no representation, warranty or undertaking, express or implied, is made or responsibility or liability is accepted by the Group as to the fairness, adequacy, accuracy, reasonableness or completeness of such information, and the Group shall not be obliged to update or revise such information.
The climate-related data and the climate-related objectives included in this press release were neither audited nor subject to a limited review by the statutory auditors of the Group.
Next information
IV. Contacts
Nicolas Buron
Director of Investor Relations, Financing & Treasury
Phone: + 33 (0)1 75 49 98 30 -
nicolas.buron@elis.com
Charline Lefaucheux
Investor Relations
Phone: + 33 (0)1 75 49 98 15 -
charline.lefaucheux@elis.com
1 The target boundary includes land-related emissions and removals from bioenergy. Scope 2 emissions targets are market-based.
Scope 1 (direct emissions) is mainly associated with consumption of gas, fuel, etc.
Scope 2 (indirect emissions) is associated with consumption of electrical energy or steam;
Scope 3 (other indirect emissions) is associated with emission from other areas: purchases, upstream transport, employee travel, etc.
Attachment
2321 Rosecrans Avenue. Suite 2200
90245 El Segundo Stati Uniti