(BFM Stock Exchange) – The industrial laundry specialist unveiled 2024 results in accordance with expectations, and has announced a new capital of capital allowance policy for shareholders.

Elis made an immaculate copy. The industrial laundry specialist has unveiled 2024 results in accordance with expectations. Already published in January, Elis’ total turnover increased by 6.1% in data published at 4.57 billion euros. In organic data, the increase in ELIS revenues is 5.2%.

Based on a gross operating result up 9.2% to 1.61 billion euros, the corresponding margin increased by 100 base points (or 1 percentage point) to 35.2%. The group benefited from more favorable productivity and purchase conditions, notes Julien Thomas Analyst at TP ICAP Midcap.

By region, the analyst notes a remarkable improvement in profitability in France (+190 basic points), Germany (+450 basis)) and in southern Europe (+180 base points). “Conversely, the group’s profitability was under pressure in Scandinavia (-120 basic points) due to competitive pressures in Denmark, especially on floor mats,” added the specialist. On the side of net income, it registered up 29% to 337.8 million euros.

Regarding the generation of Free Cash-Flow, it complies with the ICAP Midcap TP forecasts, at 346 million euros. This allows the group to deleted and drop its financial debt lever to 1.85 times in 2024.

A capital of capital benefits more favorable to shareholders

After delivering a 2024 financial performance qualified as “record” and online with its objectives, Elis anticipates a new progression of all of its financial indicators in 2025.

The group expects organic growth in annual turnover which is expected slightly less than 4%. Elis says it takes into account a negative calendar effect of approximately -0.3%. TP ICAP Midcap adds that it should expect more normalized prix effects of around 1%

Regarding the other lines of the income statement, Elis aims for a “slight growth” of her adjusted exploitation margin (EBITDA), her adjusted operational margin (EBIT), as well as her current net result by action (on a diluted basis) and her free cash-flow. The group did not encrypt these objectives.

The main novelty of this publication concerns the Elis capital allowance policy, points out the financial intermediary. The industrial laundry specialist intends to set up a share buy -back program of 150 million euros in 2025 and plans to pay an annual dividend of 0.45 euros per share up approximately 5%.

“Certainly the lack of guidance (perspective) quantified could bear the market to question. Nevertheless, the new capital allowance policy and the discipline message that it transmits should be favorably perceived, this discipline was the only element that was missing in the case of investment”, concludes TP ICAP Midcap which remains in the purchase of the file with an objective of courses of 24 euros.

Indeed, the market appreciates all the announcements delivered by the company. On the Paris Stock Exchange, the ELIS action increased by 6.3% around 3:15 p.m.