(Reuters) – Elior on Wednesday posted third-quarter revenue above expectations, thanks to the easing of restrictions linked to the health crisis, strong commercial momentum and an increase in the retention rate.
The Elior title rose by 13.1% at 7:39 GMT on the Paris Stock Exchange.
The catering group’s turnover recorded organic growth of 25% to 1.18 billion euros in the quarter ended June 30, while analysts had expected 1.11 billion euros, according to consensus established by society.
“All of the geographical areas in which Elior operates contributed to this rebound, with all our countries having recorded double-digit organic growth rates, thus reflecting a marked improvement in sanitary conditions compared to those prevailing at the same time. year earlier,” Elior said in a statement.
Business development enabled Elior to increase revenue by 10.1%, which offset the 8% impact of lost contracts, the group added.
Elior, a supplier to businesses, schools, prisons, hospitals and retirement homes, also confirmed its outlook for the current year and its objectives for 2024, but remained cautious on the macroeconomic situation. .
“The context in which we operate nevertheless remains marked by very high and persistent inflation,” Chairman and CEO Bernard Gault said in a statement.
The catering sector, hard hit by the health crisis, is now renegotiating prices and agreements with suppliers to cope with soaring energy and food prices triggered by the invasion of Ukraine by the Russia, two major wheat exporters.
In May, Elior unveiled a margin recovery plan to ease mounting pressures from the pandemic and rising prices.
(Report Federica Mileo and Elitsa Gadeva in Gdansk; French version Diana Mandiá, editing by Kate Entringer)
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