French caterer Elior delivers $109 mln core profit in 'robust' first half (updated)

Elior SA

16/05/2024 07:13

(Updates with details from paragraph 2)
       May 16 (Reuters) - French catering group Elior
 ELIOR.PA  reported higher-than-forecast first-half core profit
on Thursday, saying the impact of inflation was more than offset
by price rises and it was helped by operating efficiency gains.
    Elior, which supplies businesses, schools, prisons,
hospitals and care homes, has taken longer to recover from the
impact of the COVID-19 pandemic than its competitors Sodexo
 EXHO.PA  and Compass  CPG.L , struggling with inflation.
    But it expects price increases after the renegotiation of
contracts to drive revenues for the rest of its fiscal year.
    "We've returned to operating profitability and have removed
sources of losses within several strategic contracts. Our
business development was robust, and we won and renewed major
contracts during the period," CEO Daniel Derichebourg said.
    Elior said that its consolidated revenue was 3.12 billion
euros in the first half of its 2023-2024 fiscal year, mainly in
line with a company-compiled consensus of analyst forecasts of
3.11 billion euros, while its adjusted EBITA margin reached 3.2%
versus an estimate of 2.8%.
    It said adjusted earnings before interest, taxes and
amortisation (EBITA) were 100 million euros ($109 million) for
the period from October 2023 to March 2024. This compared to 87
million euros ($94.69 million) forecast by analysts and 41
million euros during the same period a year ago.
    Elior, which confirmed its annual targets, also said
operational efficiency gains amounted to 29 million euros in the
period, including 9 million euros in synergies.
($1 = 0.9193 euros) 

 (Reporting by Diana Mandiá; Editing by Alexander Smith)
 ((diana.mandiaalvarez@thomsonreuters.com))