Elis Achieves Remarkable Revenue Growth in 2024
Elis, a global leader in circular services, reported a record revenue of €4.57 billion in 2024, reflecting a significant increase of 6.1% compared to the previous year.
The estimated financial results for 2024 align with previously communicated targets: Adjusted EBITDA is projected at approximately 35.2%, while free cash flow is expected to exceed €340 million.
The total revenue for 2024, amounting to €4,573.7 million, was primarily driven by a robust organic growth rate of 5.2%.
Key Factors Behind Revenue Growth
Several key initiatives contributed to this remarkable performance:
- The year witnessed the signing of numerous new contracts, stemming from commercial strategies aimed at leveraging local growth opportunities across various countries.
- A positive price effect was observed across all operational regions, largely due to wage inflation impacting costs.
- Elis’s customer retention rate returned to its normative level, which highlights the company’s commitment to service quality and maintaining strong commercial relationships.
- In Germany, the organic growth rate reached around 8%, showing no significant signs of economic slowdown.
- The hospitality sector showed mixed performance, with disappointing results in the summer season but a more promising end to the year.
- In the last quarter, organic revenue growth stood at 5.0%, showcasing the resilience of Elis’s business model amidst a sluggish economic environment.
Strategic Acquisitions and Expansion Efforts
Continuing its strategy of targeted acquisitions, Elis made significant strides in 2024:
- The acquisitions of Moderna and Wasned in the Netherlands allowed Elis to bolster its offerings in the local flat linen market, thereby enhancing its network density.
- Elis also ventured into Asia by acquiring Wonway, tapping into the thriving cleanroom market in Malaysia.
- Integration processes for these acquisitions are progressing according to planned timelines, with a contribution of approximately 1.2% to total revenue growth in 2024.
- Since the beginning of 2025, Elis has consolidated three additional acquisitions: Carsan in Spain, Ernst in Germany, and Bodensee in Switzerland, collectively adding around €50 million to annual revenue.
Financial Metrics and Future Outlook
Elis’s financial metrics for 2024 are in accordance with the objectives set earlier:
- The EBITDA margin for 2024 is estimated at around 35.2%, reflecting a one percentage point increase from 2023.
- The EBIT margin is anticipated to be around 16.0%, with headline net income per share exceeding €1.75 on a fully diluted basis.
- The financial leverage ratio decreased by 0.2x as of December 31, 2024, compared to the previous year.
- It’s important to note that financial data regarding the financial year ending December 31, 2024, is based on estimated and unaudited figures.
- The complete group results for 2024 will be disclosed on March 6, 2025, prior to market opening.
Xavier Martiré, Chairman of the Management Board of Elis, commented on the financial results, stating, "2024 marked a significant milestone for Elis, achieving record revenue nearly reaching €4.6 billion, aided by robust organic growth and strategic acquisitions."
He further highlighted the solid commercial dynamism observed in workwear across all geographic markets, attributing it to numerous initiatives executed throughout the year. Despite challenges posed by the Olympic and Paralympic Games affecting tourism activities, especially in Paris, the organization remained optimistic, noting the sustainable solutions implemented to cope with rising workforce costs.
Looking ahead, Martiré expressed confidence that the Group's operational capabilities and commitment to circular economic principles would sustain its leadership position and explore lucrative growth opportunities.
Frequently Asked Questions
What was the total revenue for Elis in 2024?
The total revenue reported by Elis for 2024 was €4.57 billion, reflecting a growth of 6.1% compared to 2023.
How did Elis achieve its organic revenue growth?
Elis achieved organic revenue growth of 5.2% driven by new contracts, effective pricing strategies, and improved customer retention rates.
What acquisitions did Elis undertake in 2024?
In 2024, Elis acquired Moderna and Wasned in the Netherlands, and Wonway in Malaysia, expanding its operations and market presence.
What are the future plans for Elis?
Elis plans to continue its strategy of targeted acquisitions and leverage its operational capabilities to explore new growth opportunities.
What is the projected free cash flow for 2024?
Elis expects its free cash flow to exceed €340 million for the financial year 2024.
