Elis: Q1 2021 revenue
Contained revenue decrease in Q1
2021:
-13.3%
of which
-12.8%
organicPositive organic growth in
March and strong
improvement expected in Q2
Slight improvement in
trends in Q1 despite a
difficult comparable base, driven
by good commercial momentum in Workwear
- In Q1 2021, c. 75%
of our total business1 remained close to the level of Q1 2020: c.
+3% yoy in Healthcare, -2% yoy in Industry, and -3% yoy in Trade
& Services
- Comparable base was
difficult in January and February as the impact on activity from
the pandemic started in March 2020
- Activity continued
to benefit from (i) churn rate improvement, with good quality of
service maintained during the crisis and (ii) the development of
new offers and services in Workwear and Hygiene &
well-being
- Activity in
Hospitality (c. 25% of pre-Covid total revenue) is down -55% yoy in
Q1, without any rebound of tourism in big cities
- Central Europe and
Scandinavia were resilient owing to the weight of Workwear in their
mix; France, Southern Europe and the UK & Ireland were impacted
by their exposure to Hospitality; Latin America was still up thanks
to the good commercial activity in Healthcare
- Prices held up well
in all our geographies
Elis confirms the 2021 outlook given on
March 9, 2021
- The comparable base
is favorable from Q2 onwards; April organic revenue growth is at c.
+22%
- In a context in
which many uncertainties remain around the evolution of the
sanitary crisis (efficiency of vaccination campaigns, emergence of
new virus variants, rebound in international travel), our working
assumptions still factor in stable organic revenue growth in H1 and
c. +3% for the year
- EBITDA margin
should be slightly up on the back of the Group’s ability to
downsize its structure and variabilize its costs in a context of
activity slowdown
- Free cash flow
after lease payments should be between €190m and €230m, the main
variable being the change in working capital (impact of year-end
activity on trade receivables)
Saint-Cloud,
May 05,
2021 – Elis, an international multi-service
provider, offering textile, hygiene and facility services solutions
that is present in Europe and Latin America, today announces its
revenue for the 3 months ended March 31, 2021. These figures are
unaudited.
Commenting on the announcement, Xavier
Martiré, CEO of Elis,
said:
« Q1 organic revenue evolution was slightly
better than expected at -12.8%. Our activities in Industry,
Healthcare and Trade & Services, which represented c. 75% of
2019 total revenue, were close to normal levels of activity in the
quarter.
Hospitality remained difficult and we did not
see any rebound in international tourism. Therefore, the
performance by geography remained closely linked to the share of
Hospitality in every country mix.
In our other end-markets, commercial dynamism
was good across the board, driven by many new products and services
in Workwear and Hygiene. Additionally, our churn rate remained good
in Q1, which rewards the steady quality of service provided by Elis
in these difficult times.
The current situation impels us to remain
cautious, but the progressive reopening of shops, which has either
already started in the UK and in Southern Europe or is expected in
the coming weeks in our other geographies, is a positive sign for
our business. Q1 revenue numbers allow us to confirm the outlook
provided in March: our working assumption remains a c. +3% organic
revenue growth for the full year, factoring in a modest activity
improvement starting in Q2. The impressive efforts made in 2020 and
the Group’s capacity to variabilize its cost base should lead to a
further improvement in 2021 EBITDA margin. 2021 free cash flow
should be between €190m and €230m, depending on the impact from
change in working capital at year-end.
We therefore look to the future with confidence:
The Group’s fundamentals are strong; our diversification is a major
advantage and our business model will enable Elis to assert its
leadership in all the countries in which it is present.”
Q1 2021 revenue
In millions of
euros |
2021 |
2020 |
Organic growth |
External growth |
FX |
Reported growth |
France |
200.4 |
236.9 |
-15.4% |
- |
- |
-15.4% |
Central
Europe |
169.2 |
180.1 |
-9.1% |
+3.7% |
-0.6% |
-6.1% |
Scandinavia &
East. Eur. |
117.2 |
127.0 |
-9.5% |
- |
+1.8% |
-7.7% |
UK &
Ireland |
70.3 |
88.9 |
-22.2% |
+2.3% |
-1.0% |
-21.0% |
Southern
Europe |
42.6 |
60.5 |
-29.6% |
- |
- |
-29.6% |
Latin
America |
53.0 |
58.8 |
+12.1% |
+2.9% |
-25.0% |
-10.0% |
Others |
5.5 |
6.9 |
-19.5% |
- |
-0.6% |
-20.2% |
Total |
658.2 |
759.2 |
-12.8% |
+1.4% |
-1.9% |
-13.3% |
« Others » includes Manufacturing
Entities and Holdings.Percentage change calculations are based on
actual figures.
Q1 2021 monthly organic revenue
evolution
|
January 2021 organic evolution |
February 2021 organic evolution |
March 2021 organic evolution |
France |
-22.8% |
-20.3% |
+0.5% |
Central Europe |
-17.8% |
-10.5% |
+2.7% |
Scandinavia & East. Eur. |
-16.6% |
-11.1% |
+0.8% |
UK & Ireland |
-27.9% |
-25.8% |
-10.7% |
Southern Europe |
-36.9% |
-39.2% |
-6.5% |
Latin America |
+7.2% |
+6.9% |
+24.0% |
Others |
+16.0% |
-10.9% |
-44.7% |
Total |
-19.7% |
-16.4% |
+0.4% |
« Others » includes Manufacturing
Entities and Holdings.Percentage change calculations are based on
actual figures.
France
Q1 2021 revenue was down -15.4% (entirely
organic). We still didn’t observe any rebound in Hospitality and
the lockdown measures weighed on collective catering (mostly
clients in Workwear) and on cleaning services (mostly clients in
Hygiene). Nevertheless, our Healthcare, Industry and Trade &
Services end-markets were resilient, notably driven by good
commercial dynamism in Workwear (food processing and healthcare
clients).
Central Europe
Q1 2021 revenue was down -6.1% (-9.1% on an
organic basis). Industry showed good resilience, with new contract
wins in Workwear. Thus, despite strict lockdown measures, Poland,
Czech Republic, and Netherlands delivered positive or nearly
positive organic revenue growth in Q1, driven by good commercial
momentum with clients operating in food processing, energy services
and pharma. In Germany, organic revenue was down c. -10%, with a
negative impact from collective catering and Hospitality
clients.
Scandinavia & Eastern Europe
Q1 2021 revenue was down -7.7% (-9.5% on an
organic basis). The fact that the greater portion of our clients
operate in the Industry segment enabled the region to be quite
resilient since the beginning of the crisis. Sweden and Denmark,
the region’s largest contributors, recorded organic revenue
declines of -11% and -13% respectively in Q1, due to Hospitality.
However, Norway, Finland and Baltic States all delivered positive
organic growth in the quarter, with commercial momentum remaining
intact in Workwear.UK &
Ireland
Q1 2021 revenue was down -21.0% (-22.2% on an
organic basis). Hospitality, which normally represents around
one-third of the region’s revenue, was down c. -70% in Q1. Industry
and Trade & Services, which represent another third of total
revenue, posted a c. -10% decline, due to our high number of
collective catering clients and fast-food restaurant clients which
have been strongly impacted by the crisis. Finally, Healthcare was
stable. The good progress in the vaccination campaign in the UK, as
well as the progressive lifting of restrictions (outdoor terraces,
shops, travel…) should lead to a rebound in activity in Q2.
Southern Europe
Q1 2021 revenue was down -29.6% (entirely
organic). The geography is highly exposed to the Hospitality
segment (more than 60% of total revenue in 2019) and continues to
suffer from the sharp decline of activity, especially given that
the share of international tourism is normally very high. The
easing of the lockdown measures paves the way for a quick rebound
in activity, with a level of billing in March +17% higher than in
February. In Workwear, activity was still well-oriented (+13% in
Spain compared to 2020) on the back of good commercial dynamism and
the development of outsourcing.
Latin America
Q1 2021 organic revenue was up +12.1% in the
region but the unfavorable currency effect resulted in a -10.0%
decrease in reported revenue. End-markets where Elis operates
(public and private healthcare, food processing) were well
oriented. Furthermore, the Group developed new offers to meet
clients’ new requirements, leading to short-term contract wins
(waterproof overgowns) or permanent contracts (healthcare garments,
increase in linen rotation…). This led to further market share
gains in Healthcare in the zone’s three countries.
Financial
situation
Elis obtained in 2020 a waiver regarding its
June 30, 2021 bank covenant test. The renegotiated covenant is
4.5x.
The Group has no major debt maturity before 2023
and has, as of today, c. €1.1bn of liquidity in the form of two
revolving credit lines for an undrawn amount of €900mn and c.
€200mn in cash as of March 31, 2021.
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.
- EBITDA is defined
as EBIT before depreciation and amortization net of the portion of
subsidies transferred to income. It excludes non-recurring items
directly related to the sanitary crisis, which are accounted for in
“Non-current operating income and expenses”.
- EBITDA margin is
defined as EBITDA divided by revenues.
- EBIT is defined as
net income (or net loss) before financial expense, income tax,
share in income of equity-accounted companies, amortization of
customer relationships, goodwill impairment, non-current operating
income and expenses, miscellaneous financial items (bank fees
recognized in operating income) and expenses related to IFRS 2
(share-based payments).
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
Forward looking statements
This document may contain information related to
the Group’s outlook. Such outlook is based on data, assumptions and
estimates that the Group regarded as reasonable at the date of this
press release. Those data and assumptions may change or be adjusted
as a result of uncertainties relating particularly to the economic,
financial, competitive, regulatory or tax environment or as a
result of other factors of which the Group was not aware on the
date of this press release. Moreover, the materialization of
certain risks, especially those described in chapter 4 “Risk
factors, risk control, insurance policy, and vigilance plan” of the
Universal Registration Document for the financial year ended
December 31, 2020, which is available on Elis’s website
(www.elis.com), may have an impact on the Group’s activities,
financial position, results or outlook and therefore lead to a
difference between the actual figures and those given or implied by
the outlook presented in this document. Elis undertakes no
obligation to publicly update or revise the Group’s outlook or any
of the abovementioned data, assumptions or estimates, except as
required by applicable laws and regulations. Reaching the outlook
also implies success of the Group’s strategy. As a result, the
Group makes no representation and gives no warranty regarding the
attainment of any outlook set out above.
Next information
H1 2021 results: July 28, 2021 (after
market)
Shareholder meeting
The annual shareholder meeting will be held at
the Group’s headquarters on May 20, 2021 and will be webcasted.
Log-in information is available on Elis’s website:
https://fr.elis.com/en/group/investors-relations/regulated-information
Contact
Nicolas Buron, Investor Relations Director -
Phone: +33 1 75 49 98 30 - nicolas.buron@elis.com
1 Based on 2019 full-year revenue
- 20210505 - Elis - Q1 2021 revenue
Elis (EU:ELIS)
Historical Stock Chart
From Feb 2024 to Mar 2024
Elis (EU:ELIS)
Historical Stock Chart
From Mar 2023 to Mar 2024