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Elior ups full year forecast after 5.9% Q3 sales spike

28 August 2015 by
Elior ups full year forecast after 5.9% Q3 sales spike

Elior has upped its full year revenue growth forecast, prompted by a 5.9% year-on-year increase in revenue to €4.28b (£3.14b) for the nine months to 30 June 2015.

The French caterer has raised its full year growth forecast to at least 5%, versus the previously set target of 4%, with at least 2.5% organic growth (previously 2%).

Revenue for the same period in 2013-2014 was €4.04b (£2.96b), while EBITDA was up 4.5% to €325.4m (£2.805m) for the same period.

Philippe Salle, Elior's chairman and chief executive officer, commented: "The first nine months of our fiscal year are solid, with 2.7% organic revenue growth and an EBITDA margin that was close with the one of the first nine months of 2013-2014.

"During the third quarter the trends observed since the beginning of fiscal 2014-2015 continued, with an acceleration of growth and profitability for our concession catering operations, and a mixed picture for contract catering which led us to adapt our operational management to different regions and market segments.

"As a result of our solid performance for the period we are raising our revenue growth forecasts and standing by all of our other financial targets for full-year 2014-2015."

Other financial targets remain unchanged, including an EBITDA margin of 8.4%, an increase in operating cash flow and a "sharp rise" in earnings per share.

Elior acquired boutique UK caterer Lexington last October for an undisclosed sum, which the company said generated additional revenue growth of 2.9%, which has had a €24.8m (£17.8m) positive effect on sales.

Lexington's full year financial results to 31 December 2014 were posted to Companies House yesterday and revealed an 11.2% spike in sales to £36.9m (2013: £33.2m).

The contract catering and support services element of Elior was up 5.6% (€166.5m/£122.05m) year on year to €3.1b (£2.3m), representing 73% of total consolidated revenue.

Organic growth was 2% in this period, driven by a strong performance in the international markets, which grew 11.8% year-on-year to €1.45b (£1.06b). This was largely as a result of sustained organic growth in all regions (3.6% in total), but particularly the US, the UK and Spain. Italy posted a slight overall contraction.

Meanwhile Elior's concession catering and travel retail arm, which operates in France, Germany Belgium, Italy, Spain and the US, grew its revenue to €1.16b (£0.85b), up 6.7% year-on-year and representing 27% of total consolidated revenue.

Sales up 5.6% at Elior >>

Lexington reports 11% sales spike for 2014 >>

Elior buys Lexington Catering >>

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