Elis' Half-Yearly Liquidity Report: A Deep Dive into the Group's Financial Flexibility and Growth Drivers

Elis, the global leader in circular services at work, has released its half-yearly report relative to the liquidity contract as of December 31, 2024, providing valuable insights into the Group's financial flexibility and growth drivers. The report highlights Elis' ability to navigate market conditions and maintain its strong performance, even in the face of challenges such as the disappointing activity in the Hospitality sector.

Key Takeaways from the Report:

1. Financial Flexibility: Elis' liquidity contract with Oddo BHF (Group Natixis) has provided the Group with access to a liquidity account, which appeared on December 31st, 2024 with 184,390 shares and €1,531,816. This financial buffer allows Elis to manage short-term cash flow needs and unexpected expenses, enhancing its financial flexibility.
2. Trading Opportunities: The liquidity contract enables Elis to trade shares on both the buy and sell sides. In the second half of 2024, Elis traded 1,635,873 shares for €33,206,130 on the buy side and 1,619,744 shares for €33,168,052 on the sell side. This allows Elis to take advantage of market opportunities and adjust its shareholding based on its financial needs and market conditions.
3. Growth Drivers: Elis' organic growth in the second half of 2024 was driven by several key factors, including:
* Commercial initiatives implemented in each country to benefit from local growth opportunities.
* A return to a normalized client retention rate, reflecting Elis' quality of service and good commercial relationships with its clients.
* Favorable pricing dynamics in all geographies, with pricing adjustments implemented to offset cost base inflation.
4. Challenges and Outlook: Despite the disappointing performance in the Hospitality sector, Elis has confirmed its full-year 2024 objectives, including:
* Full-year organic growth between +5.2% and +5.5%.
* Adjusted EBITDA margin between 35.2% and 35.5%.
* Adjusted EBIT margin stable yoy at c. 16%.
* Headline net income per share above €1.75 on a fully-diluted basis.
* Free cash flow at c. €340m.
* Financial leverage ratio as of December 31, 2024 down 0.2x compared to December 31, 2023.

Elis' liquidity contract with Oddo BHF (Group Natixis) has played a crucial role in enhancing the Group's financial flexibility and risk management. By providing access to liquidity, trading opportunities, and compliance with regulatory requirements, the contract has enabled Elis to navigate market conditions and maintain its strong performance. The Group's growth drivers, including commercial initiatives, pricing dynamics, and expansion into new markets, have contributed to its organic growth in the second half of 2024. Despite challenges in the Hospitality sector, Elis has confirmed its full-year 2024 objectives, demonstrating its commitment to long-term success and sustainable growth.