Elis: Q3 revenue up +5.7% and +1.5% on an organic basis

Puteaux, October 27, 2016

Q3 revenue up +5.7% and +1.5% on an organic basis
9-month revenue up +6.5% and +2.5% on an organic basis

  • Very good figures in Europe and Latin America, illustrating the relevance of Elis' international development strategy in the context of a difficult French market
    • +4.5% in Europe, driven by Southern Europe
    • +18.5% in Latin America, driven by the Olympic Games and our good commercial momentum in Brazil
    • -1.2% in France with the Nice terrorist attack impacting hospitality in Paris and the French Riviera
  • Recent acquisitions continue to drive growth, with a +4.0% impact in Q3
  • FY16 outlook
    • Revenue confirmed at above €1.5bn: +6.5% growth (nearly +3% organic, c. +4% M&A and -0.5% FX)
    • EBITDA margin: France down between -60 bps and -30 bps depending on Q4 French hospitality activity ; further improvement in Europe and Latin America confirmed

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

"The Group delivered organic growth of +1.5% in Q3 despite the impact on the French hospitality market of the terrorist attack in Nice. This once again underscores the resilience of Elis's  business model, based on its multi service approach, diversified client portfolio and geographic expansion.

The recent acquisitions in Europe and in Latin America have driven Group's reported growth to nearly +6% in the quarter and to +6.5% for the first nine months. On an organic basis, the Nice terrorist attack and the weakness of the French market, where we still see no sign of recovery, led to a slight decrease in France. However, Spain and Brazil continued to show good commercial momentum and both countries delivered double-digit growth in Q3. All in all, Elis delivered organic growth of +1.5% in Q3 and of +2.5% over the first nine months of the year.

This set of figures allow us to confirm a full-year 2016 revenue target of above €1.5bn, driven by organic growth of nearly +3% and by external growth of c. +4%. As far as margins are concerned, the events of last summer lead us to anticipate a decrease of 30 to 60 basis points in France depending on the activity of the Parisian hospitality market in Q4. In addition, we confirm that we aim to achieve improvement in Europe and in Latin America, highlighting again the relevance of Eli's international development strategy.

Q3 revenue
(EUR million)
2016 2015 Reported
Trade & Services87.186.7+0.5%+0.5%
France a 257.9 261.1 -1.2% -1.2%
Northern Europe57.451.6+11.1%-0.7%
Southern Europe46.942.3+10.9%+10.9%
Europe 104.3 93.9 +11.0% +4.5%
Latin America 36.1 22.0 +64.1% +18.5%
Manufacturing Entities 4.6 4.3 +7.0% +14.7%
Total 402.8 381.2 +5.7% +1.5%

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

9-month revenue
(EUR million)
2016 2015 Reported
Trade & Services 257.7 255.3+1.0%+1.0%
France a 742.6 739.7 +0.4% +0.4%
Northern Europe159.8135.9+17.6%+1.3%
Southern Europe120.7108.2+11.5%+10.2%
Europe 280.6 244.1 +14.9% +5.3%
Latin America 95.9 67.1 +42.9% +14.1%
Manufacturing Entities 14.0 12.7 +10.3% +14.7%
Total 1,133.1 1,063.6 +6.5% +2.5%

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


Q3 revenue was down -1.2% in France (entirely organic). Hospitality revenue was down -1.8%. The terrorist attack on July, 14 th in Nice strongly impacted the Parisian and French Riviera markets. In addition, Q3 2015 was very dynamic, contributing to a challenging comparable base. All in all, Trade & Services, Industry and Healthcare delivered revenue in line with last year.


Q3 revenue growth in Northern Europe (+11.7%) was largely driven by the acquisitions completed in the first half of the year. Organic growth was down -0.7%. After the restatement of 2015 exceptional items, organic growth was c. +2% (for the record, some non-recurring sales of workwear and ultra-clean garments were registered in Belgium in Q3 2015 for €1.5m). Switzerland and Germany, our main markets in the region, are slightly up despite subdued hospitality activity during the summer.

In a favorable environment, Southern Europe continued to be dynamic, with revenue growth of +10.9% (entirely organic). This performance was again driven by Spain and Portugal, both delivering double-digit organic revenue growth. This not only reflects the good tourism numbers in the Iberian Peninsula, but also underscores Group's commercial momentum, leveraging on the rebound of the region to open new markets.

Latin America
Q3 revenue increased +64.1% 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 Q3, at +18.5%. This was due to three main effects: (i) price increases, (ii) several contracts linked to the Olympic Games for total revenue of €1.5m in Q3 and (iii) gains of new contracts with large accounts. In addition, we registered a positive impact from the evolution of currencies over the quarter (+6.8%).


Investor and Analyst conference call

Xavier Martiré, CEO
Louis Guyot, CFO

Thursday, October 27 2016
6:30 pm Paris time - 5:30 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: +44 203 427 1902
United Kingdom (toll-free): 0800 279 4992
Code: 5611065#

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: 5611065#
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

Q4 2016 revenue: January 23, 2016 (after 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 - Q3 2016 revenue

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Source: Elis via GlobeNewswire