The logo catering group Elior is seen on top of the company’s headquarters in the financial and business district in La Defense at Courbevoie near Paris, France, May 16, 2018. REUTERS/Charles Platiau/File Photo
French catering group Elior (ELIOR.PA) on Wednesday forecast sales growth below analysts’ expectations for its 2024 financial year, after reporting its first annual core profit since the COVID pandemic started.
Europe’s third biggest contract caterer expects organic revenue growth of between 4% and 5% and a margin for adjusted earnings before interest, taxes and amortisation (EBITA) of around 2.5% in the fiscal year that started in October.
Analysts polled by the company had forecast organic revenue growth of 5.9% and an EBITA margin of 2.6% for 2024.
Elior’s adjusted EBITA was 59 million euros ($64.35 million) in the 12 months through Sept. 30, ahead of the 50 million euros expected by analysts.
“The combined balance of the volume effect and price increases almost offsets the impact of inflation,” CEO Daniel Derichebourg said in a statement.
He also pointed to a positive effect of acquisitions and improved renegotiations of catering contracts in France and Italy.
($1 = 0.9168 euros)
Reporting by Federica Mileo in Gdansk; editing by Milla Nissi
