(AOF) – Elis announces that it has successfully placed, as part of its EMTN (Euro Medium Term Notes) program, a principal amount of 400 million euros in senior unsecured bonds, with a maturity of 6 years and offering a fixed annual coupon of 3.75%. The net proceeds from this issue will essentially be dedicated to the refinancing of the bond issue with a principal amount of 500 million euros, the maturity of which is set on April 3, 2025.
This operation is a continuation of the group’s active refinancing strategy and is in line with its continued debt reduction.
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Key points
– International provider of rental and maintenance solutions for textile, hygiene and well-being items;
– Turnover of €3.8 billion including 88% in the use of products, balanced between health for 37%, hotels and restaurants for 34%, industry for 17%, shops and services for 12%;
– International presence, with France providing 31% of revenues, ahead of Central Europe (23%), Scandinavia and Eastern Europe (15%), the United Kingdom and Ireland (13%), southern Europe (9%) and Latin America (9%);
– Decentralized business model summarized in 2 points: geographic diversity (presence in 29 countries) and by profession, operational excellence through cost reduction and strict management of delivery fleets;
– Split capital (12.21% of shares and 20.62% of voting rights for the Canada Pension Fund, 5% for BPI France), Thierry Morin chairing the 10-member supervisory board and Xavier Martiré the management board;
– Financial situation constantly improving, with €3.2 billion in equity and the same amount of debt giving a debt leverage of 2.4 at the end of June.
Challenges
– Strategy aimed at consolidating positions via 4 levers: consolidation of positions, network expansion, operational excellence and innovation;
– Innovation strategy focused on digitalization and scope of dedicated project managers:
– for customers, Elis Connext traceability program in sanitary and Pest Control
in the fight against pests,
– partnerships with start-ups and SMEs;
– 2025 environmental strategy based on eco-design and sustainability:
– 80% of textiles reused/recycled at the end of their life in 2025 vs 2010,
– 35% improvement in the thermal efficiency of European factories,
– 2022 achievements: reduction of 26% compared to 2010 in the intensity of CO2 emissions in Europe (-25% for the group), 43% in water consumption and 35% in thermal energy consumption,
– acceleration of the use of “clean” vehicles in delivery fleets,
– “green” credit line of €900 million;
– Strengthening in pest control services with the Danish Crisal;
– Deliberate debt reduction strategy aimed at obtaining an “Investment Grade” profile via a leverage of less than 2 from 2024 (debt maturities spread between April 2024 and June 2032, entirely at a fixed rate).
Challenges
– Impact of inflation: increase in costs offset by price renegotiations, improved logistics and selectivity of contracts;
– Impact of energy: doubling to 9% of the share of gas in 2022 turnover, hence the signing of fixed price supply contracts on a high share of gas and electricity purchases for coming years ;
– After an 18% increase in revenues and 33% in net profit at the end of June, 2023 expectations raised: turnover growth of around 12%, net profit of more than €410 million, debt leverage reduced to 2, 1;
– Success of the dividend payment option in shares (35%).
Sector sheet – Business services
A new entity in employee benefits
Pluxee, the division specializing in employee benefits of the services giant Sodexo, will take off on the stock market in 2024. This activity benefits from strong dynamism with organic growth in the third quarter (ended at the end of May) higher than expectations (+25 .5% versus 17.5% expected). The new entity will thus be able to better compete with its competitor Edenred. Since its split from the Accor group in 2010, this company has seen its activity jump and almost double. Having become the world leader in meal vouchers, it even recently joined the flagship stock market index of the Paris market, the CAC 40. This success comes from targeted acquisitions, international development and successful digitalization.