EuroBusinessMedia (EBM): Elior is one of the world’s leading operators in the contracted food and supply services industry. Philippe Salle is Elior’s new Chairman and Chief Executive and I have the pleasure of meeting with him today. First of all, could you give us an idea of Elior’s performance over the first half of the financial year?
Philippe Salle: Well the first half has been quite healthy for the group with 6% growth, around 3% organic growth. The rest of course is with the currency effect from the US and the British pounds. In the contract business the growth was quite healthy in fact outside of Europe, mainly in the US and also a bit in the UK, but with a resilient market in France, Italy and Spain. In the concession business I think the growth has been healthy everywhere, both in France in South Europe and also in the US.
EBM: If we look particularly at revenue, you have seen significant growth over the period, driven in particular by international operations.
Philippe Salle: Exactly. In France we have been quite resilient. It’s a big market for us and we are the market leader both in the contract business and in the concession, but we are still slightly growing in this business. Outside of France, both in South Europe, in the UK in the US, growth has been quite steady in fact, probably I would say more in the UK and in the US.
EBM: If we break it down slightly and look first of all at the contract catering and support services side, which represents 75% of your consolidated revenue, how would you say that market has performed?
Philippe Salle: The market has been quite resilient in fact in France and South Europe, probably with more growth in Spain than in Italy and we are quite strong still in France with a very high market share in this market. Outside of these three countries, UK has been quite steady, also the US, so we are quite pleased with the acceleration of the growth outside of Europe.
EBM: If we look at the concession catering and travel retail side, it’s the low season traditionally and yet you have performed well.
Philippe Salle: Yes, because I think the sentiment in terms of consumption is getting better in South Europe and in France. We have been able to post strong growth in Italy and also in Spain, in motorways and we see that the consumers are coming back to our concession business.
EBM: If we have a look now from a point of view of the shareholders, there’s been some good news for them, your attributable profit has been up sharply.
Philippe Salle: We have resisted quite well in terms of EBITDA. We are working also heavily in terms of financial debt and also financial charges in the P&L which means that we have been able to double the net income from H1 this year versus H1 last year.
EBM: Looking ahead now to the second half of the financial year, how do you see things going?
Philippe Salle: We definitely think that the sentiment is accelerating in terms of positive sentiment in the economy, it’s true of course in France, it’s true also in Southern Europe so we will definitely think that there will be an acceleration both in terms of consumption, both in the contract business and in the concession. And we will continue the steady growth in the UK and the Americas.
EBM: In September you are going to be outlining the group strategy looking ahead to 2020. Without giving too much away, could you give us an idea of what is going to guide that strategy?
Philippe Salle: Yes, this new plan that we will reveal in September is around three principles: differentiate, innovate and accelerate. So definitely it’s a growth plan and you will have more in September.
EBM: More to come then…. Thank you very much Philippe Salle.
Philippe Salle: Thank you.
