Elior jumps 26% after H1 core profit beat

Elior SA

16/05/2024 08:29

** Shares in Elior  ELIOR.PA  rally around 26% to their
highest since December as the French catering group reported
higher-than-forecast first-half core profit
    ** Its EBITA was 100 million euros ($109 million) during
October 2023 to March 2024, versus 87 million forecast in a
company-compiled consensus; EBITA margin reached 3.2% versus an
estimate of 2.8%
    ** J.P.Morgan notes that profitability improved ahead of
expectations and cash generation ended in positive territory,
impacting net debt positively
    ** The brokers says this is "a reassuring sign of the
improving underlying operating momentum coming through since CEO
Derichebourg got onboard"
    * "This is an encouraging set of H1 results showing
significant operating progress at Elior that should continue
over the coming months," ODDO says in a note
    ** Elior said it expects its adjusted EBITA margin to be "at
least 2.5%" in 2024 versus previously "around 2.5%"
    

 (Reporting by Diana Mandiá)
 ((diana.mandiaalvarez@thomsonreuters.com))