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Elis
Earnings Release • Jan 30, 2020
1280_iss_2020-01-30_a6bdc8e4-bd7e-4162-9ca8-9bd3c279e66b.pdf
Earnings Release
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Record revenue in 2019, up +4.7% to €3,282mn Very good 2019 organic growth of +3.3%
2019 organic performance driven by the effect of price increases related to inflation, good commercial momentum and an improved retention rate of our clients in most countries
- Very satisfactory performance in France (+3.2%): Good commercial dynamic and improvement of the renewal rate of our contracts
- Good momentum in Central Europe (+2.8%): Strong growth in Poland and in the Netherlands, more moderate growth in Germany
- Acceleration in Scandinavia & Eastern Europe (+3.7%), driven by a favorable dynamic in Flat linen in Sweden and Denmark
- Continuation of the operational turnaround in the UK & Ireland (-1.2%): Price increase in Hospitality and improved retention rate in Workwear
- Sustained growth in Southern Europe (+7.4%): Successful price increases in Spain and ongoing opening of the Workwear market in the region
- Latin America remains very well-oriented (+7.1%) driven by the development of outsourcing in Brazil across all our segments
The 2019 currency impact is -0.3% and the acquisition effect is +1.8%
Saint Cloud, January 30, 2020 – Elis, an international multi-service provider, offering textile, hygiene and facility services solutions across 28 countries in Europe and Latin America, today announces its full-year 2019 revenue. These figures are unaudited.
Commenting on the full-year revenue, Xavier Martiré, CEO of Elis, said:
"In 2019, Elis' revenue reached a new record at €3.3bn, increasing by approximately +5%. The Group demonstrated its ability to increase prices in a context of cost inflation, while improving its commercial activity and its client retention rate. As a result, organic growth reached +3.3% over the year, one of the highest levels ever for the Group.
We continue to open many markets to the rental-cleaning activity, especially in the Workwear segment in Latin America, Southern Europe and Eastern Europe.
In the United Kingdom we pursue the industrial and commercial turnaround, with a marked improvement in operational indicators, even if the region's organic revenue remains slightly down.
As is our practice, we will provide our outlook for the current year when we release our 2019 annual results on March 4th."
Elis SA
The figures disclosed in the present press release exclude the Clinical Solutions activity for both 2018 and 2019. In H1 2018 the Group initiated the sale process for its Clinical Solutions (operating only in the United Kingdom) and sold the activity in two parts in August and October 2019.
2019 reported revenue
| (EUR million) | H1 | 2019 H2 |
FY | H1 | 2018 H2 |
FY | H1 | Var. H2 |
FY |
|---|---|---|---|---|---|---|---|---|---|
| France | 518.9 | 546.8 | 1,065.7 | 505.9 | 526.9 | 1,032.8 | +2.6% | +3.8% | +3.2% |
| Central Europe | 357.9 | 373.1 | 731.0 | 328.7 | 353.4 | 682.1 | +8.9% | +5.6% | +7.2% |
| Scandinavia & East. Eur. | 249.8 | 257.2 | 507.0 | 240.8 | 243.1 | 483.8 | +3.7% | +5.8% | +4.8% |
| United Kingdom & Ireland | 195.0 | 201.1 | 396.1 | 196.6 | 201.1 | 397.8 | -0.8% | 0.0% | -0.4% |
| Southern Europe | 142.0 | 156.1 | 298.2 | 126.9 | 141.1 | 268.0 | +11.9% | +10.6% | +11.2% |
| Latin America | 129.5 | 133.0 | 262.5 | 125.5 | 122.2 | 247.7 | +3.2% | +8.8% | +6.0% |
| Others | 10.6 | 10.8 | 21.4 | 9.6 | 11.4 | 21.0 | +11.0% | -6.0% | +1.7% |
| Total | 1,603.7 | 1,678.1 | 3,281.8 | 1,533.9 | 1,599.3 | 3,133.3 | +4.5% | +4.9% | +4.7% |
« Others » includes Manufacturing Entities and Holdings.
Percentage change calculations are based on actual figures.
2019 reported organic revenue growth
| H1 organic growth | H2 organic growth | 2019 organic growth | |
|---|---|---|---|
| France | +2.6% | +3.8% | +3.2% |
| Central Europe | +2.2% | +3.3% | +2.8% |
| Scandinavia & East. Eur. | +3.9% | +3.4% | +3.7% |
| United Kingdom & Ireland | -1.4% | -0.9% | -1.2% |
| Southern Europe | +7.4% | +7.4% | +7.4% |
| Latin America | +6.4% | +8.0% | +7.1% |
| Others | +10.7% | -6.5% | +1.3% |
| Total | +3.0% | +3.6% | +3.3% |
« Others » includes Manufacturing Entities and Holdings.
Percentage change calculations are based on actual figures.
2019 Q4 revenue
| (EUR million) | 2019 | 2018 | Reported growth | Organic growth |
|---|---|---|---|---|
| France | 262.6 | 254.9 | +3.0% | +3.0% |
| Central Europe | 185.0 | 176.6 | +4.8% | +2.3% |
| Scandinavia & East. Eur. | 133.0 | 125.7 | +5.8% | +3.1% |
| United Kingdom & Ireland | 100.2 | 98.9 | +1.4% | -1.3% |
| Southern Europe | 70.4 | 64.6 | +9.0% | +6.3% |
| Latin America | 64.9 | 62.9 | +3.1% | +6.8% |
| Others | 6.1 | 5.2 | +17.9% | +16.5% |
| Total | 822.1 | 788.7 | +4.2% | +3.0% |
« Others » includes Manufacturing Entities and Holdings.
Percentage change calculations are based on actual figures.
France
In 2019, organic growth in France was +3.2%. All our markets were well-oriented thanks to an improvement in the retention rate of our clients, whose activity was good.
In Q4, we posted organic growth of +3.0%, with a limited impact of the strikes on our Hospitality activity in December.
Central Europe
In 2019, organic growth was +2.8%, mainly driven by the very good momentum in Poland and the Netherlands. Germany posted organic growth above +1.5%, driven by the Workwear segment, despite a slight slowdown of the German economy.
In Q4, organic growth was up +2.3%, broadly in line with the full-year trends.
Scandinavia & Eastern Europe
In 2019, the good commercial momentum continued in Scandinavia & Eastern Europe, where organic growth was close to +3.7%. This good performance is mainly explained by solid growth in Flat linen in Sweden and Denmark and by the expansion of Workwear in Eastern Europe. The foreign exchange impact for the year was -1.8%.
In Q4, organic growth was up +3.1%, with a slightly tougher comparable base.
United Kingdom & Ireland
In 2019, organic revenue of United Kingdom & Ireland decreased slightly, by -1.2%, notably due to the drop in the activity of a significant client in the retail sector. Nevertheless, operational indicators improved
not only in Hospitality, with a focus on price increases, but also in Workwear, where efforts are underway to improve the client retention rate.
In Q4, the zone's organic growth was down -1.3%, affected by the above-mentioned reduction of activity of a client.
Southern Europe
In 2019, revenue in Southern Europe was up +11.2%, with organic growth of +7.4%. This very good performance is driven by the price increase effect in Spain in a context of a strong rise in labor costs, the very good commercial momentum in the Workwear segment in the region and the good activity in Flat linen segment in Portugal.
In Q4 organic growth in the region was +6.3%, with a calendar effect of c. -0.5% in the quarter.
Latin America
In 2019, organic revenue in Latin America grew by +7.1%, driven by the development of outsourcing in Healthcare and Workwear, especially in Brazil, while maintaining a limited client churn rate. The impact of acquisitions was +1.7% and the foreign exchange impact was -2.9%.
In Q4, the region's organic growth was +6.8%, driven by Brazil and Colombia. Chile posted a slight decline due to the very tense social context since last October.
Financial definitions
Organic growth in the Group's revenue is calculated excluding (i) the impacts of changes in the scope of consolidation of "major acquisitions" and "major disposals" (as defined in the Document de Base) in each of the periods under comparison, as well as (ii) the impact of exchange rate fluctuations.
Geographical breakdown
- France
- Central Europe: Germany, Netherlands, Switzerland, Poland, Belgium, Austria, Czech Republic, Hungary, Slovakia, Luxembourg
- Scandinavia & Eastern Europe: Sweden, Denmark, Norway, Finland, Latvia, Estonia, Lithuania, Russia • UK & Ireland
- Southern Europe: Spain & Andorra, Portugal, Italy
- Latin America: Brazil, Chile, Colombia
Full-year 2019 results presentation (in English)
Date:
Wednesday 4 March 2020 - 8:30am London time (9:30am Paris time)
Venue:
Sofitel London St James, 6 Waterloo Pl, St. James's, London, SW1Y4AN
Investors wishing to attend the presentation are invited to contact us by e-mail at: [email protected]
Contacts
Nicolas Buron, Investor Relations Director - Phone: +33 175 499 830 - [email protected] Audrey Bourgeois, Investor Relations - Phone: + 33 175 499 625 - [email protected]