(AOF) – Elior has won an increase of nearly 2% to 6.19 euros per share on Wednesday, after having published encouraging prospects at the same time as annual results without surprise. For the 2021-2022 financial year, the catering group indeed anticipates organic growth of at least 18% and an adjusted EBITDA margin of between 2% and 2.5%, with capex limited to around 2, 5% of income. LCM Midcap analysts were not asking for much, as they expected growth of 12% and a margin of 1.2%.

“The update of the New Elior 2024 strategic plan has reaffirmed our value creation levers, defined for 2019,” the company explained in a press release.

Its ultimate objective is to return to the pre-crisis level of turnover (4.92 billion euros in 2018-2019), with a significantly higher adjusted EBITDA margin (3.6% in 2018- 2019). Elior is therefore targeting annual organic revenue growth of at least 7% for 2022-2023 and 2023-2024 and an adjusted EBITDA margin of around 4.6% in 2023-2024.

Elior also plans to resume the distribution of dividends based on 2022-2023 results.

In the meantime, over the 2020-2021 financial year, the group significantly reduced its loss thanks to the resumption of activity, which fell to 106 million euros against 487 million euros a year ago. Adjusted EBITDA stood at -64 million euros (consensus at -69 million), a slight improvement compared to -69 million last year, reflecting, according to the company, the strict control of its operating costs .

Turnover stood at 3.69 billion euros, a contraction of 7%, of which -5.3% on an organic basis. LCM aimed slightly less, at 3.642 billion euros. “This performance implies a fourth quarter growth of more than 8% with activity equivalent to 85% of the fourth quarter 2018-2019”, notes the broker.

LCM however maintained its recommendation for Sale, with a target price of 5 euros, “considering that the next quarters could be further complicated as class closures are increasing in France.”


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