EuroBusiness Media (EBM): Elior Group is one of the global leaders in the contracted food and supply services industry. It’s publishing its annual results and I have the pleasure of discussing them today with the company’s Chairman and CEO. Philippe Salle, hello. You’ve met the objectives that you’d set yourself, talk us through some of the key figures for the year.
Philippe Salle: For 2015, first in terms of sales, we have grown over 6%, organically around 3%, a little bit more in fact in the concession world, a little bit less in the contract world. In terms of EBITDA margin we were flat, year on year, which was in fact the guidance that we had given to the market some months ago. Operational cash flow grows by 10% and what we call the recurring EPS over 50% versus last year.
EBM: What are some of the key events over the past year that underpin those figures?
Philippe Salle: In terms of key events, we have won several contracts, both in the concession world and in the contract world. For example in the concession, the Los Angeles airport, in the US - it will be enforced in 2017 but we signed the contract in fact during the course of 2015. In the contract world, many victories also, for example a big one with La Poste in France which was quite a good one. In terms of M&A also, we have started the M&A in the UK, at the end of 2014 and then restarted the M&A in the US where we have done three acquisitions, two in fact in 2015, the last one was announced several weeks ago. And finally, we have launched our strategic plan in September, which sketches where we want to go and how we want to go in the next five years.
EBM: Tell us a little bit now about your transformation plan Tsubaki. There are eight major projects. Are any of them up and running already?
Philippe Salle: Out of the eight projects, we have in fact launched three of them. The first ones are linked to the growth, both BtoB and BtoC, so new contracts and the marketing part of it, and the purchasing one has been launched also in October.
EBM: If we look now at the breakdown between your activities in France and outside, has there been any evolution in the breakdown?
Philippe Salle: In fact France is decreasing as a percentage. It’s close to 50% in 2015 because we do most of our acquisitions outside of France and also because the organic growth is higher right now outside of France than in France, mainly in fact in the UK and also in the USA and Spain. And we will see this trend continuing in 2016, when I think now France is going to be below the 50% threshold which I think is a good balance fit for the Group and for the future.
EBM: If we look now at the structure of the Elior group’s capital, has there been any change in that over the course of the past year?
Philippe Salle: The main change that we witnessed during 2015 is that the private equity has decreased its shareholding. It was roughly at the beginning of the year around 40%, it is now close to 20% and I would say that’s the normal life of a private equity to exit one day of course out of Elior.
EBM: What is your analysis of the share over the course of the last nine months?
Philippe Salle: In fact the share, since the beginning of the year, has had an outstanding performance. We increased roughly by 50%. There is probably a little catch-up versus 2014 where I would say there was some disappointment versus the guidance, but since then I think that the share price has performed quite well and I definitely think of course, like every CEO, that this is not yet finished.
EBM: Looking ahead to 2016, what will some of your priorities be?
Philippe Salle: In 2016, we will continue the past in terms of organic growth and M&A. Organic growth continues to push quite strongly in the UK and the US and is resisting also quite well in continental Europe. In terms of M&A, we have announced already a deal in the US and we are looking at several other deals right now, in fact in the US, also in Europe and also in Asia – we will see if we are going to strike one of them in the coming weeks. And for the rest I think launching all 8 Tsubaki projects, because as I said, we have launched only 3 of them, and we will roll out all the projects one by one in the course of 2016.
EBM: Philippe Salle, Chairman and CEO of Elior Group, thank you very much indeed.
Philippe Salle: Thank you.
