PARIS--(BUSINESS WIRE)--Regulatory News:
Elior (Paris:ELIOR)(Euronext Paris – ISIN: FR 0011950732), one of the world's leading operators in the contracted food and support services industry, today released its results for the nine months ended June 30, 2015
Philippe Salle – Elior’s Chairman and Chief Executive Officer – stated: “The first nine months of our fiscal year are solid, with 2.7% organic revenue growth and an EBITDA margin that was close with the one of the first nine months of 2013-2014. During the third quarter the trends observed since the beginning of fiscal 2014-2015 continued, with an acceleration of growth and profitability for our concession catering operations, and a mixed picture for contract catering which led us to adapt our operational management to different regions and market segments. As a result of our solid performance for the period we are raising our revenue growth forecasts and standing by all of our other financial targets for full-year 2014-2015.”
| (In € millions) | 9 months ended | 9 months ended | Year-on-year | ||||
| June 30, 2015 | June 30, 2014 | change | |||||
| Revenue | 4,280.6 | 4,040.7 | +5.9% | ||||
|
EBITDA1 |
325.4 | 311.3 | +4.5% | ||||
| As a % of revenue | 7.6% | 7.7% | (10) bps | ||||
| EBIT1 | 208.4 | 211.3 | (1.4)% | ||||
| As a % of revenue | 4.9% | 5.2% | (30) bps | ||||
| Attributable profit for the period | 67.5 | 20.1 | x 3.3 | ||||
|
Operating cash flow2 |
137.1 | 130.9 | +4.7% |
Change in Accounting Method Affecting the Group’s Reported Results
Elior’s consolidated financial statements for the first nine months of 2014-2015 have been affected by the application of IFRIC 21, “Levies” – issued in connection with International Financial Reporting Standards (IFRS) – which concerns the recognition of taxes other than on income and is applicable by the Group on a retrospective basis from the fiscal year beginning October 1, 2014. In accordance with IFRIC 21, levies are now recognized when the obligation to pay the levy (the “obligating event”) is triggered, whereas previously their recognition was deferred throughout the fiscal year. The impact on the income statement for the nine months ended June 30, 2015 represented negative amounts of €2.1 million pre-tax and €1.5 million post-tax (negative amounts of €4.4 million and €3.1 million respectively for the first half of the fiscal year). The income statement for the first nine months of 2013-2014 has been restated for the same pre-tax and post-tax amounts. This change in accounting method affects the Group’s interim financial statements but the full year impact of applying IFRIC 21 for full-year 2014-2015 will be virtually nil.
Revenue
Consolidated revenue totaled €4,280.6 million in the first nine months of 2014-2015. The 5.9% increase on the equivalent period of 2013-2014 reflects solid organic growth of 2.7% over the period. The October 2014 acquisition of Lexington in the United Kingdom added 0.9% to revenue growth, net of the effect of the disposal in December 2013 of non-strategic concession catering operations in Argentina and Morocco. Changes in exchange rates had a 2.3% net positive impact, mainly due to the strengthening of the U.S. dollar and pound sterling against the euro. The portion of revenue generated by international operations in the first nine months of 2014-2015 was 49.5% versus 46.9% in the same period of 2013-2014.
1 Including the impact of IFRIC 21
2 Defined as EBITDA + changes in WCR - net capex
Contract Catering & Support Services revenue was up €166.5 million, or 5.6%, on the first nine months of 2013-2014, coming in at €3,118.5 million and representing 73% of total consolidated revenue.
Organic growth was 2.0% over the period, driven by a particularly strong performance in international markets.
The calendar effect – corresponding to the year-on-year difference in the number of working days – was only slight during the first nine months of 2014-2015, representing 0.1% of revenue.
Changes in the scope of consolidation pushed up Contract Catering & Support Services revenue by 1.3%, fueled by the acquisition of Lexington which had a €39 million favorable impact.
Lastly, changes in exchange rates had a positive 2.3% effect.
In France, revenue reached €1,664.5 million, with organic growth amounting to 0.7%.
- In the Business & Industry market, average revenue per meal increased but attendance levels were lower.
- Revenue generated in the Education market was up year on year, notably thanks to the contribution of the catering contract for the secondary schools in the Hauts-de-Seine region, as well as increased attendance and a higher average customer spend.
- In the Healthcare market, revenue was up on the first nine months of 2013-2014, led by the performance of existing sites.
In international markets, revenue rose 11.8% year on year to €1,454.0 million. Organic growth was 3.6%, propelled by the United States, the United Kingdom and Spain, while Italy posted a slight overall contraction. The acquisition of Lexington in the United Kingdom and positive currency effects generated additional revenue growth of 2.9% and 5.3% respectively.
- Organic growth was high in the Business & Industry market, fueled by strong revenue levels in Spain and the United States. In Italy, the impact of new contracts such as with Telecom Italia and Banca d'Italia offset the revenue decrease posted by existing sites. Business remained brisk in the United Kingdom, thanks to a robust showing both from existing sites and sites opened in the past twelve months. The acquisition of Lexington contributed €39 million to revenue during the period.
- In the Education market, the slowdown in business in Italy was partially offset by revenue increases in other countries, particularly Spain and the United Kingdom.
- The Healthcare market reported significant growth for the period, driven by good performances in the United States, the United Kingdom and Spain.
Concession Catering & Travel Retail revenue advanced by 6.7% year on year to €1,162.1 million, representing 27% of total consolidated revenue.
Organic growth for the period came to 4.8%, reflecting an acceleration in the third quarter when revenue rose 5.8%. Changes in scope of consolidation – resulting from the sale in December 2013 of the Group's concession catering subsidiaries in Argentina and Morocco – trimmed 0.3% off revenue, while changes in exchange rates, notably for the U.S. dollar, had a positive 2.3% impact.
Revenue generated in France, Germany, Belgium and Italy rose 5.8% year on year to €696.5 million, with the increase entirely due to organic growth as there were no changes in scope of consolidation during the period.
- In the Motorways market Italy reported strong growth, propelled by the opening of new motorway service areas, and revenue in France edged up during the third quarter.
- Revenue growth in the Airports market was driven by a sharp upturn in Italy due in particular to good showings at Roma, Bergamo, Napoli and Milano Linate airports. In France, revenue for the period was negatively impacted as from January 2015 by the loss of the contract for Terminal 1 at Nice Airport.
- The City Sites & Leisure market also reported an overall year-on-year revenue increase, with the pace of growth accelerating in the third quarter, notably as a result of (i) the Paris Air Show in June (which is held every two years), (ii) the positive effect of the Expo 2015 world's fair in Milan, Italy, as from May, and (iii) the good showing turned in by railway station operations (particularly at Paris Gare de Lyon station), despite the refurbishment works currently under way at Gare du Nord in Paris.
In Spain, Portugal and the Americas, growth of 8.1% over the period pushed revenue up to €465.6 million. Organic growth came to 3.1%.
- The Motorways market felt the positive effects of the ramp-up of service areas in the United States and the increase in traffic across all of the Spanish networks.
- Revenue in the Airports market was boosted by the opening of new points of sale in the United States (notably in Los Angeles and Chicago), as well as growth delivered by operations in Spanish airports, particularly Madrid-Barajas (where all of the new concepts have now been launched) and Palma (where traffic volumes rose during the period).
Business development
Business development was solid overall in the first nine months of 2014-2015. However, the client retention rate for the Contract Catering & Support Services business line was negatively affected by the Group’s deliberate strategy of taking a more selective approach to new contracts, particularly in France and Italy. A number of major contracts were won during the third quarter of the fiscal year, notably with (i) the Chaville and Berre l’Etang municipalities (Education market), the Colisée Patrimoine group (Healthcare market), and Tour D2 in Paris’s La Défense business district and the L’Oréal Campus (Business & Industry), in France, (ii) Vigo hospital and secondary schools in the Madrid region in Spain, (iii) Independent Living Systems in the United States, and (iv) the elementary schools in Bologna, Italy.
EBITDA
Consolidated EBITDA climbed by €14.1 million to €325.4 million in the first nine months of 2014-2015 and represented 7.6% of revenue versus 7.7% for the first nine months of 2013-2014, when there was a non-recurring €3.5 million positive impact on headquarters costs.
EBITDA for the Contract Catering & Support Services business line advanced to €250.8 million from €242.4 million, but its EBITDA margin edged down to 8.0%.
- In France, EBITDA totaled €145.3 million and represented 8.7% of revenue, down 20 basis points on the first nine months of 2013-2014. The strong performance delivered in the Business & Industry market partially offset the adverse effect on margins of contract renewals in the Education and Healthcare markets.
- In international operations, EBITDA was €10.9 million higher than in the comparable prior-year period, coming in at €105.5 million. As a percentage of revenue it represented 7.3%, unchanged from the figure for the first nine months of 2013-2014. International EBITDA for this business line was boosted during the period by revenue growth in the United States and the United Kingdom as well as by higher profitability delivered by the United Kingdom and Italy during the third quarter.
Concession Catering & Travel Retail EBITDA amounted to €81.0 million (versus €70.4 million in the same period of 2013-2014) and represented 7.0% of revenue, up 50 basis points year on year.
- In France, Germany, Belgium and Italy, the EBITDA figure was €50.8 million (against €44.5 million for the prior-year period), and represented 7.3% of revenue, 50 basis points higher than in the first nine months of 2013-2014. The strong performance turned in by the Italian operations and the slight increase in EBITDA margin in the Motorways market in France more than offset the contraction in EBITDA experienced in the French Airports market during the period.
- In Spain, Portugal and the Americas, EBITDA climbed by €4.3 million year on year to €30.2 million, and its EBITDA margin was up 50 basis points compared with the first nine months of 2013-2014.
Attributable Profit for the Period
Attributable profit for the period was up sharply, amounting to €67.5 million versus €20.1 million in the first nine months of 2013-2014. This drove an increase in earnings per share to €0.41 from €0.18.
Non-current items represented a net charge of €25.6 million and primarily included non-recurring costs relating to the Group’s senior debt and US-dollar debt refinancing operations carried out during the period. These refinancing operations significantly reduced finance costs as from December 10, 2014. Non-current items in the nine months ended June 30, 2015 also included restructuring charges, amortization of intangible assets related to the acquisitions of THS and Lexington, and the loss arising on the sale of non-strategic assets in the Education market in France.
At €61.3 million, net financial charge was considerably lower than in the first nine months of 2013-2014, reflecting (i) the early repayment of a portion of the Group’s debt following Elior’s IPO in June 2014, (ii) the debt refinancing operations carried out in December 2014 and May 2015, and (iii) better financial conditions obtained during the second quarter of 2014-2015 for the Group’s securitization programs.
Income tax rose to €56.3 million from €28.4 million. The year-on-year increase reflects the higher level of taxable profit in the first nine months of 2014-2015 compared with the equivalent period of 2013-2014, as well as the write-down of deferred tax assets in Spain following a change in Spanish tax laws.
Operating Cash Flow and Net Debt
Operating cash flow1 (before interest and tax) represented a net €137.1 million inflow in the first nine months of 2014-2015, up €6.2 million on the €130.9 million recorded for the same period of 2013-2014, when it was boosted by €17 million due to one-off receivables sales in Spain following the Spanish government’s decision to reduce its payment terms. The year-on-year increase was due to higher consolidated EBITDA and tight control over capex. The operating cash flow figure for the first nine months of the fiscal year reflects the highly seasonal nature of the Group’s operations.
Net debt amounted to €1,531 million at June 30, 2015, up €151 million on the September 30, 2014 figure as a result of (i) acquisitions carried out during the period under review (Lexington and purchases of treasury shares for the buyout of Emesa’s minority interest in Áreas), (ii) the dividend payment in the third quarter, and (iii) non-recurring factors, such as the refinancing of the Group’s debt. The Group’s leverage ratio2 stood at 3.31x EBITDA at June 30, 2015 compared with 3.33x one year earlier.
1 Defined as EBITDA + change in WCR - net capex
2 Calculated in accordance with the definition in the SFA: Consolidatd net debt/EBITDA pro forma for acquisitions and divestments carried out in the past twelve months.
Outlook
In view of its performance in the first nine months of 2014-2015, the Group has decided to:
- Raise its revenue growth target for full-year 2014-2015 to at least 5% (vs the previous target of at least 4%), with at least 2.5% organic growth (vs at least 2% previously).
-
Stand by all of its other financial targets for fiscal 2014-2015,
namely to achieve:
- A stable EBITDA margin, at 8.4%. The good high-season performance delivered by Concession Catering in Europe will help the Group meet this objective.
- An increase in operating cash flow1 (before interest and tax).
- A sharp rise in earnings per share, thanks to a significant decrease in finance costs due to the reduction in the Group’s debt following the capital increase carried out in June 2014 and the senior debt refinancing that took place in December 2014. This in turn will lead to a strong increase in the dividend per share.
Subsequent events
- On July 24, 2015, Elior increased its ownership interest in Áreas to 100%, strengthening the Group’s position as a global player in the concession catering market. In connection with this transaction, Emesa (Áreas’ minority shareholder) received a cash payment of €46 million as well as 9 million Elior shares (1,282,500 existing shares held in treasury and 7,717,500 newly-issued shares). Emesa has therefore become a significant shareholder in Elior, holding 5.22% of the Company’s capital.
- On August 4, 2015, Elior acquired Starr Restaurant Catering Group (SRCG), a high-end restaurant and catering group based in the United States. Founded in 2008, SRCG operates multiple sites, primarily in New York, Philadelphia and Miami. SRCG generated revenue of some USD 40 million in 2014 and is a market leader in providing high level full-service catering.
1 Defined as EBITDA + change in WCR - net capex
A conference call will take place on Friday, September 28, 2015 at 10.00 a.m. (CET).
You can join the conference call by dialing:
France: + 33 1 76 77 22 20
United Kingdom: + 44 20 3427 1906
United States: +1 212 444 0481
Upcoming financial communications:
- September 23-24, 2015: Investor Day in London
- December 11, 2015: full-year 2014-2015 results – issue of press release before the start of trading plus conference call
Appendix 1: Revenue by business line and geographic region
Appendix
2: Revenue by geographic region
Appendix 3: Revenue by client market
Appendix
4: EBITDA by business line and geographic region
Appendix 5: EBIT
by business line and geographic region
Appendix 6: Consolidated
financial statements
Appendix 7: Exchange rates and currency effects
Appendix
8: 2013-2014 quarterly results restated to reflect the impact of IFRIC 21
The English-language version of this document is a free translation from the original, which was prepared in French. All possible care has been taken to ensure that the translation is an accurate representation of the original. However, in all matters of interpretation of information, views or opinions expressed therein, the original language version of the document in French takes precedence over this translation.
About Elior
Founded in 1991, Elior has grown into one of the world's leading operators in the contracted food and support services industry, generating revenue of €5,341 million in FY 2013-2014 through 18,000 restaurants and points of sale in 13 countries. Driven by an unwavering commitment to excellence, our 106,000 passionately professional employees provide personalized catering and service solutions on a daily basis to 3.8 million customers in the business & industry, education, healthcare, leisure and travel markets, taking genuine care of each and every person they serve. We place particular importance on corporate social responsibility and have been a member of the United Nations Global Compact since 2004. Our corporate philosophy – which is centered on quality and innovation as well as responsible relations with others and the community at large – is reflected in our motto: "Because the whole experience matters".
For further information please visit our website (www.elior.com) or follow us on Twitter (http://twitter.com/Elior_Group)
APPENDIX 1: REVENUE BY BUSINESS LINE AND GEOGRAPHIC REGION
First quarter
| (in € millions) | Q1 2014-2015 | Q1 2013-2014 | Organic growth (1) | Calendar effect |
Changes in scope of consolidation (2) |
Currency effect (3) | Total growth | ||||||||
| France | 555.3 | 553.1 | 0.4% | 0.0% | 0.0% | 0.0% | 0.4% | ||||||||
| International | 487.3 | 435.8 | 5.9% | 0.0% | 2.9% | 3.0% | 11.8% | ||||||||
| Contract Catering & Support Services | 1,042.6 | 989.0 | 2.8% | 0.0% | 1.3% | 1.3% | 5.4% | ||||||||
| France, Germany, Belgium and Italy | 230.5 | 218.5 | 5.5% | 0.0% | 0.0% | 0.0% | 5.5% | ||||||||
| Spain, Portugal and the Americas | 146.7 | 141.3 | 3.4% | 0.0% | -2.2% | 2.6% | 3.8% | ||||||||
| Concession Catering & Travel Retail | 377.2 | 359.8 | 4.7% | 0.0% | -0.9% | 1.0% | 4.9% | ||||||||
| Group total | 1,419.8 | 1,348.7 | 3.3% | 0.0% | 0.7% | 1.2% | 5.3% |
Second quarter
| (in € millions) | Q2 2014-2015 | Q2 2013-2014 | Organic growth (1) | Calendar effect | Changes in scope of consolidation (2) | Currency effect (3) | Total growth | ||||||||
| France | 568.8 | 559.9 | 1.1% | 0.5% | 0.0% | 0.0% | 1.6% | ||||||||
| International | 492.1 | 441.4 | 2.6% | 0.0% | 2.8% | 6.1% | 11.5% | ||||||||
| Contract Catering & Support Services | 1,060.9 | 1 001.4 | 1.8% | 0.3% | 1.2% | 2.7% | 5.9% | ||||||||
| France, Germany, Belgium and Italy | 202.0 | 194.0 | 4.1% | 0.0% | 0.0% | 0.0% | 4.1% | ||||||||
| Spain, Portugal and the Americas | 139.9 | 127.8 | 2.6% | 0.0% | -0.7% | 7.6% | 9.5% | ||||||||
| Concession Catering & Travel Retail | 341.9 | 321.8 | 3.5% | 0.0% | -0.3% | 3.0% | 6.3% | ||||||||
| Group total | 1,402.8 | 1,323.1 | 2.2% | 0.2% | 0.9% | 2.7% | 6.0% |
Third quarter
| (in € millions) | Q3 2014-2015 | Q3 2013-2014 | Organic growth (1) | Calendar effect | Changes in scope of consolidation (2) | Currency effect (3) | Total growth | ||||||||
| France | 540.4 | 538.9 | 0.5% | -0.2% | 0.0% | 0.0% | 0.3% | ||||||||
| International | 474.6 | 422.7 | 2.3% | 0.0% | 3.1% | 6.9% | 12.3% | ||||||||
| Contract Catering & Support Services | 1,015.0 | 961.6 | 1.3% | -0.1% | 1.4% | 3.0% | 5.5% | ||||||||
| France, Germany, Belgium and Italy | 264.0 | 245.7 | 7.5% | 0.0% | 0.0% | 0.0% | 7.5% | ||||||||
| Spain, Portugal and the Americas | 179.0 | 161.5 | 3.2% | 0.0% | 0.5% | 7.1% | 10.8% | ||||||||
| Concession Catering & Travel Retail | 443.0 | 407.2 | 5.8% | 0.0% | 0.2% | 2.8% | 8.8% | ||||||||
| Group total | 1,458.0 | 1,368.8 | 2.6% | -0.1% | 1.0% | 3.0% | 6.5% |
Nine months
| (in € millions) | 9 months ended June 30, 2015 | 9 months ended June 30, 2014 | Organic growth (1) | Calendar effect |
Changes in scope of consolidation (2) |
Currency effect (3) | Total growth | ||||||||
| France | 1,664.5 | 1,652.0 | 0.7% | 0.1% | 0.0% | 0.0% | 0.8% | ||||||||
| International | 1,454.0 | 1,300.0 | 3.6% | 0.0% | 2.9% | 5.3% | 11.8% | ||||||||
| Contract Catering & Support Services | 3,118.5 | 2,952.0 | 2.0% | 0.1% | 1.3% | 2.3% | 5.6% | ||||||||
| France, Germany, Belgium and Italy | 696.5 | 658.2 | 5.8% | 0.0% | 0.0% | 0.0% | 5.8% | ||||||||
| Spain, Portugal and the Americas | 465.6 | 430.5 | 3.1% | 0.0% | -0.7% | 5.8% | 8.1% | ||||||||
| Concession Catering & Travel Retail | 1,162.1 | 1,088.7 | 4.8% | 0.0% | -0.3% | 2.3% | 6.7% | ||||||||
| Group total | 4,280.6 | 4,040.7 | 2.7% | 0.0% | 0.9% | 2.3% | 5.9% |
APPENDIX 2: REVENUE BY GEOGRAPHIC REGION
First quarter
| (in € millions) | Q1 2014-2015 | Q1 2013-2014 | Organic growth (1) | Calendar effect |
Changes in scope of consolidation (2) |
Currency effect (3) | Total growth | ||||||||
| France | 723.6 | 720.0 | 0.5% | 0.0% | 0.0% | 0.0% | 0.5% | ||||||||
| Other European countries | 529.7 | 481.1 | 6.5% | 0.0% | 2.6% | 1.0% | 10.1% | ||||||||
| Rest of the world | 166.5 | 147.6 | 6.8% | 0.0% | -2.1% | 8.0% | 12.8% | ||||||||
| Group total | 1,419.8 | 1,348.7 | 3.3% | 0.0% | 0.7% | 1.2% | 5.3% |
Second quarter
| (in € millions) | Q2 2014-2015 | Q2 2013-2014 | Organic growth (1) | Calendar effect |
Changes in scope of consolidation (2) |
Currency effect (3) | Total growth | ||||||||
| France | 713.5 | 705.1 | 0.8% | 0.4% | 0.0% | 0.0% | 1.2% | ||||||||
| Other European countries | 509.8 | 475.4 | 2.9% | 0.0% | 2.6% | 1.7% | 7.2% | ||||||||
| Rest of the world | 179.6 | 142.6 | 6.7% | 0.0% | -0.6% | 19.8% | 25.9% | ||||||||
| Group total | 1,402.8 | 1,323.1 | 2.2% | 0.2% | 0.9% | 2.7% | 6.0% |
Third quarter
| (in € millions) | Q3 2014-2015 | Q3 2013-2014 | Organic growth (1) | Calendar effect |
Changes in scope of consolidation (2) |
Currency effect (3) | Total growth | ||||||||
| France | 726.6 | 722.3 | 0.8% | -0.2% | 0.0% | 0.0% | 0.6% | ||||||||
| Other European countries | 549.7 | 504.6 | 4.5% | 0.0% | 2.6% | 1.8% | 8.9% | ||||||||
| Rest of the world | 181.6 | 142.0 | 5.3% | 0.0% | 0.6% | 22.0% | 27.9% | ||||||||
| Group total | 1,458.0 | 1,368.8 | 2.6% | -0.1% | 1.0% | 3.0% | 6.5% |
Nine months
| (in € millions) |
9 months ended June 30, 2015 |
9 months ended June 30, 2014 |
Organic growth (1) | Calendar effect | Changes in scope of consolidation (2) | Currency effect (3) | Total growth | ||||||||
| France | 2,163.7 | 2,147.4 | 0.7% | 0.1% | 0.0% | 0.0% | 0.8% | ||||||||
| Other European countries | 1,589.2 | 1,461.1 | 4.6% | 0.0% | 2.6% | 1.5% | 8.8% | ||||||||
| Rest of the world | 527.7 | 432.1 | 6.3% | 0.0% | -0.7% | 16.5% | 22.1% | ||||||||
| Group total | 4,280.6 | 4,040.7 | 2.7% | 0.0% | 0.9% | 2.3% | 5.9% |
1. Organic growth: change in revenue at constant Group structure, excluding the currency effect and excluding the impact of changes in the number of business days.
2. Changes in scope of consolidation primarily correspond to the acquisition of Lexington in October 2014 (in the Contract Catering & Support Services business in the UK), and the divestment of non-strategic operations in Argentina and Morocco in December 2013.
3. See Appendix 7 for the main changes in exchange rates (USD, GBP, MXP and CLP).
APPENDIX 3: REVENUE BY CLIENT MARKET
First quarter
| (in € millions) | Q1 2014-2015 | Q1 2013-2014 | Organic growth (1) | Calendar effect |
Changes in scope of consolidation (2) |
Currency effect (3) | Total growth | ||||||||
| Business & Industry | 473.7 | 436.4 | 3.7% | 0.7% | 2.9% | 1.3% | 8.6% | ||||||||
| Education | 305.0 | 302.1 | 1.0% | -1.0% | 0.0% | 1.0% | 0.9% | ||||||||
| Healthcare | 263.9 | 250.5 | 3.6% | 0.0% | 0.0% | 1.8% | 5.4% | ||||||||
| Contract Catering & Support Services | 1,042.6 | 989.0 | 2.8% | 0.0% | 1.3% | 1.3% | 5.4% | ||||||||
| Motorways | 130.6 | 121.8 | 6.1% | - | 0.0% | 1.1% | 7.2% | ||||||||
| Airports | 151.1 | 141.6 | 6.7% | - | -1.7% | 1.7% | 6.7% | ||||||||
| City Sites & Leisure | 95.5 | 96.3 | 0.0% | - | -0.7% | -0.1% | -0.8% | ||||||||
| Concession Catering & Travel Retail | 377.2 | 359.8 | 4.7% | - | -0.9% | 1.0% | 4.9% | ||||||||
| Group total | 1,419.8 | 1,348.7 | 3.3% | 0.0% | 0.7% | 1.2% | 5.3% |
Second quarter
| (in € millions) | Q2 2014-2015 | Q2 2013-2014 | Organic growth (1) | Calendar effect |
Changes in scope of consolidation (2) |
Currency effect (3) | Total growth | ||||||||
| Business & Industry | 473.4 | 440.1 | 2.6% | -0.1% | 2.8% | 2.3% | 7.6% | ||||||||
| Education | 319.7 | 310.9 | -0.4% | 1.1% | 0.0% | 2.1% | 2.8% | ||||||||
| Healthcare | 267.8 | 250.4 | 3.0% | 0.0% | 0.0% | 4.0% | 6.9% | ||||||||
| Contract Catering & Support Services | 1,060.9 | 1,001.4 | 1.8% | 0.3% | 1.2% | 2.7% | 5.9% | ||||||||
| Motorways | 117.8 | 110.2 | 4.1% | 0.0% | 0.0% | 2.8% | 6.9% | ||||||||
| Airports | 140.1 | 126.8 | 6.5% | 0.0% | -0.7% | 4.7% | 10.5% | ||||||||
| City Sites & Leisure | 84.1 | 84.8 | -1.7% | 0.0% | 0.0% | 0.8% | -0.9% | ||||||||
| Concession Catering & Travel Retail | 341.9 | 321.8 | 3.5% | 0.0% | -0.3% | 3.0% | 6.3% | ||||||||
| Group total | 1,402.8 | 1,323.1 | 2.2% | 0.2% | 0.9% | 2.7% | 6.0% |
Third quarter
| (in € millions) | Q3 2014-2015 | Q3 2013-2014 | Organic growth (1) | Calendar effect |
Changes in scope of consolidation (2) |
Currency effect (3) | Total growth | ||||||||
| Business & Industry | 470.0 | 437.1 | 1.7% | 0.1% | 3.0% | 2.7% | 7.5% | ||||||||
| Education | 277.9 | 271.3 | 0.8% | -0.6% | 0.0% | 2.3% | 2.4% | ||||||||
| Healthcare | 267.1 | 253.3 | 1.1% | 0.0% | 0.0% | 4.4% | 5.5% | ||||||||
| Contract Catering & Support Services | 1,015.0 | 961.6 | 1.3% | -0.1% | 1.4% | 3.0% | 5.5% | ||||||||
| Motorways | 160.2 | 148.4 | 5.4% | 0.0% | 0.0% | 2.5% | 7.9% | ||||||||
| Airports | 184.9 | 165.2 | 7.1% | 0.0% | 0.5% | 4.3% | 11.9% | ||||||||
| City Sites & Leisure | 97.9 | 93.6 | 4.0% | 0.0% | 0.0% | 0.6% | 4.6% | ||||||||
| Concession Catering & Travel Retail | 443.0 | 407.2 | 5.8% | 0.0% | 0.2% | 2.8% | 8.8% | ||||||||
| Group total | 1,458.0 | 1,368.8 | 2.6% | -0.1% | 1.0% | 3.0% | 6.5% |
Nine months
| (in € millions) | 9 months ended June 30, 2015 |
9 months ended June 30, 2014 |
Organic growth (1) | Calendar effect | Changes in scope of consolidation (2) | Currency effect (3) | Total growth | ||||||||
| Business & Industry | 1,417.1 | 1,313.5 | 2.7% | 0.2% | 2.9% | 2.1% | 7.9% | ||||||||
| Education | 902.5 | 884.3 | 0.4% | -0.2% | 0.0% | 1.8% | 2.0% | ||||||||
| Healthcare | 798.8 | 754.1 | 2.5% | 0.0% | 0.0% | 3.4% | 5.9% | ||||||||
| Contract Catering & Support Services | 3,118.5 | 2,952.0 | 2.0% | 0.1% | 1.3% | 2.3% | 5.6% | ||||||||
| Motorways | 408.6 | 380.4 | 5.2% | 0.0% | 0.0% | 2.2% | 7.4% | ||||||||
| Airports | 476.1 | 433.6 | 6.8% | 0.0% | -0.6% | 3.5% | 9.7% | ||||||||
| City Sites & Leisure | 277.5 | 274.7 | 0.8% | 0.0% | -0.2% | 0.4% | 1.0% | ||||||||
| Concession Catering & Travel Retail | 1,162.1 | 1,088.7 | 4.8% | 0.0% | -0.3% | 2.3% | 6.7% | ||||||||
| Group total | 4,280.6 | 4,040.7 | 2.7% | 0.0% | 0.9% | 2.3% | 5.9% |
1. Organic growth: change in revenue at constant Group structure, excluding the currency effect and excluding the impact of changes in the number of business days.
2. Changes in scope of consolidation primarily correspond to the acquisition of Lexington in October 2014 (in the Contract Catering & Support Services business in the UK), and the divestment of non-strategic operations in Argentina and Morocco in December 2013.
3. See Appendix 7 for the main changes in exchange rates (USD, GBP, MXP and CLP).
APPENDIX 4: EBITDA1 BY BUSINESS LINE AND GEOGRAPHIC REGION
First quarter
| (in € millions) | Q1 2014-2015 | Q1 2013-2014 |
Y-on-y change (€m) |
Y-on-y change (%) | |||||
| France | 49.1 | 48.2 | 1.0 | 1.9% | |||||
| International | 37.2 | 34.6 | 2.6 | 7.5% | |||||
| Contract Catering & Support Services | 86.3 | 82.8 | 3.6 | 4.2% | |||||
| France, Germany, Belgium and Italy | 15.0 | 16.6 | -1.6 | -9.6% | |||||
| Spain, Portugal and the Americas | 7.3 | 7.4 | -0.1 | -1.4% | |||||
| Concession Catering & Travel Retail | 22.3 | 24.0 | -1.7 | -7.1% | |||||
| Corporate | (2.5) | (2.2) | -0.3 | -13.6% | |||||
| Group total | 106.2 | 104.6 | 1.6 | 1.5% |
Second quarter
| (in € millions) | Q2 2014-2015 | Q2 2013-2014 |
Y-on-y change (€m) |
Y-on-y change (%) | |||||
| France | 56.4 | 56.6 | -0.2 | -0.4% | |||||
| International | 37.0 | 34.6 | 2.4 | 6.9% | |||||
| Contract Catering & Support Services | 93.4 | 91.1 | 2.3 | 2.5% | |||||
| France, Germany, Belgium and Italy | 3.7 | (0.7) | 4.4 | nm | |||||
| Spain, Portugal and the Americas | 2.7 | 3.0 | -0.3 | -10.0% | |||||
| Concession Catering & Travel Retail | 6.4 | 2.3 | 4.1 | 178.3% | |||||
| Corporate | (1.5) | (2.0) | 0.5 | 25.0% | |||||
| Group total | 98.2 | 91.4 | 6.8 | 7.4% |
Third quarter
| (in € millions) | Q3 2014-2015 | Q3 2013-2014 | Y-on-y change (€m) | Y-on-y change (%) | |||||
| France | 39.8 | 43.1 | -3.3 | -7.7% | |||||
| International | 31.3 | 25.4 | 5.9 | 23.2% | |||||
| Contract Catering & Support Services | 71.1 | 68.5 | 2.6 | 3.8% | |||||
| France, Germany, Belgium and Italy | 32.1 | 28.6 | 3.5 | 12.2% | |||||
| Spain, Portugal and the Americas | 20.1 | 15.5 | 4.6 | 29.7% | |||||
| Concession Catering & Travel Retail | 52.2 | 44.1 | 8.1 | 18.4% | |||||
| Corporate | (2.4) | 2.7 | -5.1 | -188.9% | |||||
| Group total | 121.0 | 115.3 | 5.7 | 4.9% |
1 Including the impact of IFRIC 21
APPENDIX 5: EBIT1 BY BUSINESS LINE AND GEOGRAPHIC REGION
First quarter
| (in € millions) | Q1 2014-2015 | Q1 2013-2014 | Y-on-y change (€m) | Y-on-y change (%) | |||||
| France | 39.1 | 39.4 | -0.3 | -0.8% | |||||
| International | 28.2 | 27.4 | 0.8 | 2.9% | |||||
| Contract Catering & Support Services | 67.3 | 66.8 | 0.5 | 0.7% | |||||
| France, Germany, Belgium and Italy | 4.1 | 6.2 | -2.1 | -33.9% | |||||
| Spain, Portugal and the Americas | (1.5) | (0.9) | -0.5 | -66.6% | |||||
| Concession Catering & Travel Retail | 2.7 | 5.3 | -2.6 | -49.1% | |||||
| Corporate | (2.7) | (2.5) | -0.2 | -8.0% | |||||
| Group total | 67.3 | 69.5 | -2.3 | -3.2% |
Second quarter
| (in € millions) | Q2 2014-2015 | Q2 2013-2014 | Y-on-y change (€m) | Y-on-y change (%) | |||||
| France | 47.2 | 47.0 | 0.2 | 0.4% | |||||
| International | 28.9 | 27.2 | 1.7 | 6.3% | |||||
| Contract Catering & Support Services | 76.1 | 74.2 | 1.9 | 2.6% | |||||
| France, Germany, Belgium and Italy | (7.7) | (9.6) | 1.9 | 19.8% | |||||
| Spain, Portugal and the Americas | (6.8) | (5.4) | -1.4 | -25.9% | |||||
| Concession Catering & Travel Retail | (14.5) | (15.0) | 0.5 | 3.3% | |||||
| Corporate | (2.2) | (2.4) | 0.2 | 8.3% | |||||
| Group total | 59.5 | 56.8 | 2.7 | 4.8% |
Third quarter
| (in € millions) | Q3 2014-2015 | Q3 2013-2014 | Y-on-y change (€m) | Y-on-y change (%) | |||||
| France | 30.5 | 34.3 | -3.8 | -11.1% | |||||
| International | 23.2 | 23.9 | -0.7 | -2.9% | |||||
| Contract Catering & Support Services | 53.7 | 58.2 | -4.5 | -7.7% | |||||
| France, Germany, Belgium and Italy | 20.8 | 17.6 | 3.2 | 18.2% | |||||
| Spain, Portugal and the Americas | 10.1 | 6.9 | 3.2 | 46.4% | |||||
| Concession Catering & Travel Retail | 30.9 | 24.5 | 6.4 | 26.1% | |||||
| Corporate | (2.9) | 2.3 | -5.2 | ||||||
| Group total | 81.7 | 85.0 | -3.3 | -3.9% |
1 Including the impact of IFRIC 21
APPENDIX 6: CONSOLIDATED FINANCIAL STATEMENTS
Consolidated Income Statement1
| (in € millions) |
9 months ended June 30, 2015 |
9 months ended June 30,
2014 |
|||
| Revenue | 4,280.6 | 4,040.7 | |||
| Purchase of raw materials and consumables | (1,308.4) | (1,219.2) | |||
| Personnel costs | (1,951.2) | (1,870.9) | |||
| Other operating expenses | (644.6) | (589.7) | |||
| Taxes other than on income | (52.4) | (51.2) | |||
| Depreciation, amortization and provisions for recurring operating items | (116.9) | (100.0) | |||
| Recurring operating profit | 207.1 | 209.7 | |||
| Share of profit of associates | 1.4 | 1.6 | |||
| Recurring operating profit including share of profit of associates | 208.5 | 211.3 | |||
| Other income and expenses, net | (25.6) | (53.2) | |||
| Operating profit including share of profit of associates | 182.9 | 158.1 | |||
| Net financial expense | (61.3) | (111.6) | |||
| Profit before income tax | 121.6 | 46.5 | |||
| Income tax | (56.3) | (28.4) | |||
| Profit for the period | 65.3 | 18.1 | |||
| Attributable to owners of the parent | 67.5 | 20.1 | |||
| Attributable to non-controlling interests | 2.2 | 2.0 | |||
| Earnings per share (in €) | 0.41 | 0.18 | |||
| Average number of shares at June 30 | 164,867,207 | 113,608,622 |
Consolidated Balance Sheet – Assets
| (in € millions) | At June 30,2015 | At June 30, 2014 | |||
| Goodwill | 2,374.1 | 2,357.2 | |||
| Intangible assets | 301.3 | 230.6 | |||
| Property, plant and equipment | 512.7 | 502.5 | |||
| Non-current financial assets | 49.5 | 38.0 | |||
| Investments in associates | 3.0 | 6.5 | |||
| Fair value of derivative financial instruments | 0.0 | 0.4 | |||
| Deferred tax assets | 226.1 | 236.2 | |||
| Non-current assets | 3,466.7 | 3,371.5 | |||
| Inventories | 93.9 | 89.9 | |||
| Trade and other receivables | 1,015.3 | 1,009.6 | |||
| Current income tax assets | 32.0 | 25.3 | |||
| Other current assets | 51.0 | 46.1 | |||
| Short-term financial receivables | 7.5 | 5.3 | |||
| Cash and cash equivalents | 212.5 | 312.4 | |||
| Current assets | 1,412.2 | 1,488.5 | |||
| Total assets | 4, 878.9 | 4,860.0 |
Consolidated Balance Sheet – Equity and Liabilities
|
(in € millions) |
At June 30,2015 | At June 30,2014 | |||
| Share capital | 1.6 | 1.6 | |||
| Reserves and retained earnings | 1,281.7 | 1,297.0 | |||
| Non-controlling interests | 30.9 | 30.2 | |||
| Total equity | 1,314.3 | 1,328.9 | |||
| Long-term debt | 1,645.0 | 1,647.9 | |||
| Fair value of derivative financial instruments | 20.1 | 25.4 | |||
| Non-current liabilities relating to share acquisitions | 210.4 | 148.7 | |||
| Deferred tax liabilities | 48.6 | 41.3 | |||
| Provisions for pension and other post-employment benefit obligations | 107.1 | 98.9 | |||
| Long-term provisions | 15.1 | 11.6 | |||
| Other non-current liabilities | 0.0 | 0.1 | |||
| Non-current liabilities | 2,046.3 | 1,973.9 | |||
| Trade and other payables | 671.9 | 685.8 | |||
| Due to suppliers of non-current assets | 19.8 | 15.8 | |||
| Accrued taxes and payroll costs | 597.0 | 603.6 | |||
| Current income tax liabilities | 49.7 | 22.8 | |||
| Short-term debt | 86.0 | 110.2 | |||
| Current liabilities relating to share acquisitions | 9.7 | 18.9 | |||
| Short-term provisions | 61.9 | 79.8 | |||
| Other current liabilities | 22.5 | 20.4 | |||
| Current liabilities | 1,518.4 | 1,557.2 | |||
| Total liabilities | 3,564.7 | 3,531.1 | |||
| Total equity and liabilities | 4,878.9 | 4,860.0 |
Consolidated Cash Flow Statement
| (In € millions) | 9 months ended June 30, 2015 | 9 months ended June 30, 2014 | |||
| Cash flows from operating activities | |||||
| EBITDA | 325.4 | 311.3 | |||
| Change in working capital | (51.5) | (34.7) | |||
| Interest paid | (54.8) | (105.9) | |||
| Tax paid | (34.9) | (20.6) | |||
| Other cash movements | (55.2) | (48.2) | |||
| Net cash from operating activities | 129.1 | 102.0 | |||
| Cash flows from investing activities | |||||
| Purchases of and proceeds from sale of property, plant and equipment and intangible assets | (136.8) | (145.7) | |||
| Purchases of and proceeds from sale of non-current financial assets | 0.1 | (2.7) | |||
| Acquisition/sale of shares in consolidated companies | (22.0) | (2.6) | |||
| Net cash used in investing activities | (158.6) | (151.0) | |||
| Cash flows from financing activities | |||||
| Dividends paid to owners of the parent | (32.9) | 0.0 | |||
| Movements in share capital of the parent | 1.6 | 777.9 | |||
| Purchases of treasury shares | (17.5) | 0.0 | |||
| Dividends paid to non-controlling interests | (8.4) | (0.4) | |||
| Proceeds from borrowings | 1,239.0 | 168.4 | |||
| Repayments of borrowings | (1,090.0) | (756.7) | |||
| Net cash from financing activities | 91.9 | 189.1 | |||
| Effect of exchange rate and other changes | (43.8) | (5.2) | |||
| Net increase in cash and cash equivalents | 18.5 | 134.9 |
APPENDIX 7: EXCHANGE RATES AND CURRENCY EFFECTS
| 1 EUR = |
Average rate 9 months ended June 30,-2015 |
Average rate 9 months ended June 30, 2014 |
Y-on-y change (%) | Impact on revenue (€m) | |||||
| U.S. dollar | 1.161494 | 1.367825 | 0.17764276 | 67.903 | |||||
| Pound sterling | 0.751813 | 0.827999 | 0.10133637 | 22.386 | |||||
| Mexican peso | 17.055546 | 17.894119 | 0.049167174 | 2.836 | |||||
| Chilean peso | 711.761462 | 739.853718 | 0.039468639 | 0.649 |
APPENDIX 8: 2013-2014 QUARTERLY RESULTS RESTATED TO REFLECT THE IMPACT OF IFRIC 21
First quarter 2013-2014
| (in € millions) | Reported consolidated EBIT | Reported consolidated EBITDA | IFRIC 21 restatement | Restated consolidated EBIT | Restated consolidated EBITDA | ||||||
| France | 38.1 | 46.9 | 1.3 | 39.4 | 48.2 | ||||||
| International | 27.4 | 34.6 | 0.0 | 27.4 | 34.6 | ||||||
| Contract Catering & Support Services | 65.5 | 81.5 | 1.3 | 66.8 | 82.8 | ||||||
| France, Germany, Belgium and Italy | 4.9 | 15.3 | 1.3 | 6.2 | 16.6 | ||||||
| Spain, Portugal and the Americas | (1.2) | 7.1 | 0.3 | (0.9) | 7.4 | ||||||
| Concession Catering & Travel Retail | 3.7 | 22.4 | 1.6 | 5.3 | 24.0 | ||||||
| Corporate | (2.5) | (2.2) | 0.0 | (2.5) | (2.2) | ||||||
| Group total | 66.6 | 101.7 | 2.9 | 69.5 | 104.6 |
Second quarter 2013-2014
| (in € millions) | Reported consolidated EBIT | Reported consolidated EBITDA | IFRIC 21 restatement | Restated consolidated EBIT | Restated consolidated EBITDA | ||||||
| France | 50.4 | 60.0 | (3.4) | 47.0 | 56.6 | ||||||
| International | 27.5 | 34.9 | (0.3) | 27.2 | 34.6 | ||||||
| Contract Catering & Support Services | 77.9 | 94.9 | (3.8) | 74.1 | 91.1 | ||||||
| France, Germany, Belgium and Italy | (7.2) | 1.8 | (2.4) | (9.6) | (0.6) | ||||||
| Spain, Portugal and the Americas | (4.2) | 4.2 | (1.2) | (5.3) | 3.0 | ||||||
| Concession Catering & Travel Retail | (11.3) | 6.0 | (3.6) | (14.9) | 2.4 | ||||||
| Corporate | (2.4) | (2.0) | 0.0 | (2.4) | (2.0) | ||||||
| Group total | 64.2 | 98.8 | (7.4) | 56.8 | 91.5 |
Third quarter 2013-2014
| (in € millions) | Reported consolidated EBIT | Reported consolidated EBITDA | IFRIC 21 restatement | Restated consolidated EBIT | Restated consolidated EBITDA | ||||||
| France | 33.0 | 41.8 | 1.2 | 34.2 | 43.0 | ||||||
| International | 23.4 | 25.0 | 0.3 | 23.7 | 25.3 | ||||||
| Contract Catering & Support Services | 56.5 | 66.8 | 1.4 | 57.9 | 68.2 | ||||||
| France, Germany, Belgium and Italy | 17.1 | 28.0 | 0.5 | 17.6 | 28.5 | ||||||
| Spain, Portugal and the Americas | 6.4 | 15.0 | 0.4 | 6.8 | 15.5 | ||||||
| Concession Catering & Travel Retail | 23.5 | 43.1 | 0.9 | 24.4 | 44.0 | ||||||
| Corporate | 2.6 | 3.0 | 0.0 | 2.6 | 3.0 | ||||||
| Group total | 82.6 | 112.9 | 2.4 | 84.9 | 115.2 |
Fourth quarter 2013-2014
| (in € millions) | Reported consolidated EBIT | Reported consolidated EBITDA | IFRIC 21 restatement | Restated consolidated EBIT | Restated consolidated EBITDA | ||||||
| France | 26.3 | 35.9 | 1.0 | 27.3 | 36.9 | ||||||
| International | 6.8 | 14.0 | 0.1 | 6.9 | 14.1 | ||||||
| Contract Catering & Support Services | 33.1 | 49.9 | 1.0 | 34.1 | 50.9 | ||||||
| France, Germany, Belgium and Italy | 45.9 | 59.6 | 0.6 | 46.5 | 60.2 | ||||||
| Spain, Portugal and the Americas | 19.9 | 27.7 | 0.4 | 20.3 | 28.2 | ||||||
| Concession Catering & Travel Retail | 65.8 | 87.3 | 1.0 | 66.8 | 88.4 | ||||||
| Corporate | (4.0) | (3.3) | 0.0 | (4.0) | (3.3) | ||||||
| Group total | 94.9 | 133.9 | 2.1 | 97.0 | 136.0 |