Elis: Q1 2016 revenues

Puteaux, May 4, 2016

Q1 2016 revenues

Revenues up 8.9%
+11.0% excluding currency impact and +4.1% on an organic basis

  • Good organic growth momentum in all geographies
    • +2.6% in France with all segments posting growth
    • +6.2% in Europe with Southern Europe continuing to drive growth
    • +13.9% in Latin America driven by good performance in Healthcare and price increases in Brazil
  • Further M&A activity with 2 acquisitions in Germany and Brazil in January, representing combined revenues of c. €20 million on a full-year basis
  • FY16 outlook confirmed
    • Revenue: +6% (+3% organic, +4% M&A and -1% FX)
    • EBITDA margin: -30 bps in France and further improvement in Europe and Latin America

Commenting on the 2016 first quarter revenues, Xavier Martiré, CEO of Elis , said:

"The 4.1% organic revenue growth delivered in Q1 was very satisfactory and in line with our expectations. It reflects the Group's momentum in all its geographies, especially Southern Europe and Latin America.

At the beginning of the year, Elis continued its expansion in Europe and Latin America through two strategic acquisitions which strengthened the Group's position in Germany and reinforced its leadership position in Brazil. These acquisitions are in line with Elis' strategy of consolidating its geographic platforms and should contribute to accelerating the Group's development.

This set of figures allows us to confirm our FY16 outlook for revenue and margin."

Q1 revenues (EUR million) 2016 2015 Reported
Trade & Services84.883.12.1%2.1%
France a 234.0 228.2 2.6% 2.6%
Northern Europe50.338.231.7%2.6%
Southern Europe33.528.916.0%11.0%
Europe 83.8 67.0 25.0% 6.2%
Latin America 28.1 22.3 26.1% 13.9%
Manufacturing Entities 4.7 4.5 4.2% 5.6%
Total 350.6 322.0 8.9% 4.1%

a  : After other items including rebates
Percentage change calculations are based on actual figures


Q1 revenue growth of +2.6% in France was entirely organic and showed acceleration compared to Q4 2015. All segments were up in Q1:

  • Revenues for Trade & Services grew +2.1% driven by good commercial growth from the signing of new contracts,
  • Revenues for the Hospitality segment delivered solid growth of +7.4% on the back of the roll-out of large contracts, as well as some non-recurring calendar effects (Easter week in March vs in April in 2015 and the impact of an additional day in February as 2016 is a leap year). This helped to offset the residual impact from the terrorist attacks in November, which we estimate at c. €2mn in Q1, only in the Parisian region.
  • Revenues for the Industry segment rose by 0.9% helped by new contracts signed in 2015 with food processing clients and by good commercial growth. Activity with existing clients was broadly stable,
  • Revenues for the Healthcare segment grew by 4.8%, boosted by the implementation of large contracts with both short-stay and long-stay clients,


Q1 revenue growth in Northern Europe (+31.7%) was largely driven by the acquisitions completed in April 2015, July 2015 and January 2016. Organic revenue growth was +2.6%, with Switzerland and Germany, our main markets in the region, delivering good growth thanks to the same calendar effects seen in France and a good performance by the Hospitality segment.

Revenue in Southern Europe continued to be dynamic (+16.0%) in a favorable macro environment with double-digit organic growth (+11.0%). This was again driven by Spain, which grew revenues in all segments and benefited from the aforementioned calendar effects.

Latin America
Q1 revenue growth increased +26.1% largely due to acquisitions we completed in Brazil in July 2015 and in January 2016, and the acquisition of Albia in Chile (consolidated since October 1 st 2015). Organic growth improved sharply in Q1, at +13.9%. This was due to three main effects: (i) price increases,
(ii) strong activity from hospitals, laboratories and medical centers as a consequence of epidemics that impacted Brazil during the summer and (iii) gains of new contracts with large accounts. The depreciation of the Brazilian Real strongly impacted our reported revenue growth with a -28.7% impact on revenues in the region.

Investor and Analyst conference call

Xavier Martiré, CEO
Louis Guyot, CFO

Date: Wednesday, May 4 2016
9:00 am Paris time - 8:00 am London time

Webcast link (live and replay):
Webcast replay will be available for 1 year following the event.

Numbers to dial:
France: +33 1 76 77 22 22
France (toll-free): 0805 631 579
United Kingdom: +44 207 136 6283
United Kingdom (toll-free): 0800 279 4992
Code: 4251402#

Numbers for replay:
France: +33 1 74 20 28 00
United Kingdom: +44 203 427 0598
United States of America: +1 347 366 9565
Code for replay: 4251402#
Audio replay will be available for 1 week following the event.

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" in each of the periods under comparison, as well as (ii) the impact of exchange rate fluctuations.

Forward looking statements

This release may contain some forward-looking statements. These statements are not undertakings as to
the future performance of the Company. Although the Company considers that such statements are based on reasonable expectations and assumptions at the date of publication of this release, they are by their nature subject to risks and uncertainties which could cause actual performance to differ from those indicated or implied in such statements.
These risks and uncertainties include without limitation the risk factors that are described in the Document de Base and in the 2015 Registration Document, both registered in France with the French Autorité des marchés financiers.
Investors and holders of shares of the Company may obtain copy of these documents from the Autorité des marchés financiers' website: www.amf-france.org or from the Company's website:  www.corporate-elis.com/en/investor-relations
The Company does not have the obligation and undertakes no obligation to update or revise any of the forward-looking statements.

Next information

H1 2016 results: July 26, 2016 (before market)

About Elis

Elis is a specialized multi-services group, leader in Europe and Latin America for the rental and maintenance of flat linen, professional clothing, as well as hygiene appliance and well-being services. With more than 21,000 employees spread across 13 countries, Elis consolidated turnover in 2015 was €1,415 million and consolidated EBITDA reached €446 million. Benefiting from more than a century of experience, Elis today services more than 240 000 businesses of all sizes in the hotel, catering, healthcare, industry, retail and services sectors, thanks to its network of more than 300 production and distribution centers and 13 clean rooms, which guarantees it an unrivalled proximity to its clients.


Nicolas Buron , Investor Relations Director - Phone: +33 1 41 25 46 77 - nicolas.buron@elis.com

Elis - Q1 2016 revenues

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Source: Elis via GlobeNewswire