Full Year 2024 Elis SA Earnings Call Transcript
Key Points
- Elis SA (FRA:7EL) achieved record financial performance in 2024, with a 6.1% revenue growth reaching nearly EUR4.6 billion.
- EBITDA increased by 9.2% to EUR1.6 billion, with a margin improvement of 100 basis points to 35.2%.
- The company reported a significant 29% increase in net income, reaching EUR338 million.
- Free cash flow reached a record EUR346 million, showing a 14% improvement year-on-year.
- Elis SA's return on capital employed reached a record level of 14.5%, with a 60 basis point improvement.
- The hospitality sector underperformed due to the negative impact of the Paris Olympics on activity.
- The EBITDA margin in Scandinavia and Eastern Europe declined by 120 basis points, despite remaining at a high level.
- The company faced challenges in pricing negotiations, particularly in Denmark and with public healthcare customers.
- Elis SA's stock price has not reflected its operational and financial performance, with valuation multiples significantly lower than in 2019.
- The company anticipates a slight increase in costs, particularly in labor, with a projected 4% rise in wage expenses for 2025.
Good day and thank you for standing by. Welcome to the Elis full year 2024 results conference call. (Operator Instructions) Please be advised that today's conference is being recorded. I would now like to hand the conference over to your speaker today, Xavier Martire, CEO. Please go ahead.
Thank you. Good morning, and welcome to Elis 2024 annual results presentation. I'm Xavier Martire, CEO of Elis; and I'm here in Paris with our CFO, Louis Guyot. After an overview of the highlights of the year for Elis, I will hand over to Louis, he will detail the 2024 results.
I will then come back to provide you with an update on our CSR journey before detailing the new capital allocation strategy that we announced today as well as our outlook for 2025. Finally, we'll have a Q&A session to answer your questions. And our call, Nicolas Buron, will be available to answer any of your questions offline. Before we start, please take the time to
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