Elior falls after cutting FY EBITA margin target

Elior SA

25/07/2023 10:24

** Shares in French caterer Elior  ELIOR.PA  are down 7%,
after falling more than 10%, as the company lowered its
full-year EBITA margin target
    ** Elior now expects an adjusted EBITA margin of about 1%
for the 2022-2023 fiscal year, down from a prior estimate of
between 1.5% and 2%, pointing to higher-than-expected start-up
costs in relation to a handful of new catering contracts
    ** "This further deterioration is characteristic of the poor
visibility of a business strongly impacted by inflation", Midcap
analyst Julien Thomas writes in a note
    ** "Inflation seems to have peaked but remains historically
high", the company added in a statement
    ** The company reported 12.3% organic growth over the last
nine months
    ** Shares on track for their worst day since May 17, 2023
when it closed 22.8 % lower
    ** Up to the previous session's close, shares were down
14.1%​ year-to-date

    
    

 (Reporting by Victor Goury-Laffont)
 ((Victor.goury-laffont@tr.com))