By Dimitri Rhodes
(Reuters) -French food caterer Elior lowered its organic revenue growth guidance for 2025 on Wednesday, citing a focus on profitability.
The group forecast organic revenue growth of between 1% and 2%, down from a previous estimate of between 3% and 5%.
“I would say that the overall context is complicated in terms of the anticipated growth of the economy,” Elior’s Chief Financial Officer Didier Grandpré said in a call with journalists.
“When you look at the various forecasts, growth in different sectors will impact us, as well as opportunities to grow with our clients,” he said, noting the automotive and aerospace industries are under notable pressure.
Elior, which supplies catering services to businesses, schools, prisons, hospitals and care homes, posted organic revenue growth of 1.5% to 3.21 billion euros ($3.64 billion), compared to 5.9% growth the year prior.
The group has been rationalising its portfolio since April 2023 through voluntary withdrawals from loss-making contracts and business expansion elsewhere.
“Elior Group’s results for the first half of fiscal 2024-2025 clearly show how the strategy we’ve been implementing since 2023 is the right one – namely putting the profitability of our business at the top of our priorities,” CEO Daniel Derichebourg said in a statement.
The group posted a jump in net profit to 43 million euros in the first half from 1 million euros last year.
It also now expects an adjusted core profit (EBITA) margin of between 3.3% and 3.6% for 2025, compared to above 3% in its previous guidance.
Its adjusted earnings before interest, taxes, and amortisation (EBITA) rose 32% to 132 million euros between October 2024 and March 2025, compared with 100 million a year earlier.
Analysts were expecting 121 million euros on average, a consensus poll provided by Elior showed.
When asked about U.S. tariffs, the CFO told journalists they would impact Elior marginally, given that the majority of its supplies are sourced locally.
($1 = 0.8817 euros)
(Reporting by Dimitri Rhodes; Editing by Joe Bavier)
