Elis: H1 2025 results

Core Viewpoint - Elis has demonstrated strong financial performance in H1 2025, achieving profitable growth despite a challenging macroeconomic environment in Europe, and has confirmed all full-year financial objectives for 2025 [2][5][11]. Financial Performance - H1 2025 revenue reached €2,343.1 million, reflecting a 4.3% increase, with organic growth of approximately 4% after adjusting for a negative calendar effect [7][9]. - Adjusted EBITDA rose by 5.1% to €813.8 million, with an adjusted EBITDA margin improvement of 30 basis points to 34.7% [7][11]. - Net income increased by 28.6% to €152.5 million, while headline net income was up 2.6% to €213.2 million, with headline net income per share rising by 3.0% to €0.85 [7][38]. Growth Strategy - Approximately 70% of Elis' revenue is less exposed to economic cycles, allowing the company to continue executing its growth strategy amid economic slowdowns [4][11]. - The company has maintained strong commercial momentum, signing numerous new contracts driven by increased outsourcing and service expansion [10][11]. - Recent acquisitions in Spain, Germany, and Switzerland contributed 1.8% to reported revenue growth in H1 2025 [7][11]. Regional Performance - Revenue growth varied by region, with Southern Europe showing a 9.5% increase, Central Europe at 8.8%, and Latin America experiencing a reported decline of 5.9% due to currency fluctuations [13][25][28]. - In France, revenue grew by 3.1%, supported by solid commercial activity and a rebound in the hospitality sector [19][20]. - The UK & Ireland region saw a 4.0% revenue increase, while Scandinavia & Eastern Europe reported a 2.6% rise [24][22]. Operational Efficiency - The company achieved further productivity gains through the optimization of industrial processes and improved energy purchasing conditions [7][11]. - The adjusted EBITDA margin in Central Europe improved by 100 basis points to 32.3%, driven by better energy purchasing conditions and operational improvements [21]. Cash Flow and Financial Health - Free cash flow for H1 2025 was €31.0 million, aligning with the full-year objective [44]. - The financial leverage ratio decreased to 1.92x as of June 30, 2025, down from 2.06x a year earlier, indicating improved financial health [45]. Corporate Social Responsibility (CSR) - Elis reported a 2.7% improvement in energy efficiency in its European laundries compared to H1 2024, reflecting ongoing CSR commitments [7][49]. - The company aligns 69% of its revenue with the transition to a circular economy, highlighting the sustainability of its business model [51].