Bad times for Elior, which is still looking for a driver after the surprise departure of Phillipe Guillemot from Vallourec in March. Despite the return to sustained growth, the collective catering giant unscrewed on the stock market on Wednesday after announcing a massive loss in the first half ended March 31 of its staggered 21/22 financial year, as well as the closure of loss-making activities in the United States around frozen meals. At 12 noon, the action fell by nearly 7% on the Paris Stock Exchange in a stable market. Elior does not intend to distribute dividends before the 2023-2024 financial year.
Compared to its competitors Compass and Sodexo, Elior was handicapped by its geography. “We are the leader in France, Spain and Italy, three countries where it is legally complicated to renegotiate contracts in the face of inflation, with adjustments that are not automatic. This requires painstaking work to review thousands of contracts, ”explains the company.
–
