Newrest announces €1,270 million in turnover for 2017

Newrest, a specialist in out-of-home food service, has published its consolidated financial statements for the year ending 30 September 2017.

The Group is a global leader in multi-sector catering and achieved a consolidated turnover of €1,270 million in 2017, representing annual growth of 13%, of which 9% is organic.

The rate of growth in all business segments was satisfactory, particularly for group catering and remote site management, which increased by 25%.

The breakdown of the turnover by business segment is as follows:

• Inflight catering (including onboard duty-free): 38%,
• Group catering and remote site management: 34%,
• Rail catering: 23%,
• Airport retail concessions: 5%.

The share of group catering and remote site management in the Group’s financial performance increased from 30% in 2016 to 34% in 2017. The airline service segment totaled 38%, as compared to 41% in 2016.

Growth in the airline service segment was slower in particular due to the fire that completely destroyed the Charles de Gaulle unit in July 2017 (with no personal injuries, however). The exceptional commitment of the teams during this very busy summer period allowed the Group to adopt solutions to continue operations by transferring production to Orly and Le Bourget and by subcontracting the remaining activities. A new 7,500 m² unit should be inaugurated in the first quarter of 2018.

In 2017, the Group opened an inflight catering unit in Bogota and signed a contract worth tens of millions of euros with United Airlines to provide inflight catering services in London Heathrow and throughout Britain.

In 2017, it also finalized the purchase of 100% of the French group catering company Coralys.

The year was very successful for Newrest in group catering, with new contracts signed with Icade, ADP, the Economat des Armées, Fujitsu, Siemens, the CREPS in Toulouse, Michelin and Ambev. It also signed a major contract for prison catering in Morocco.

The European zone recorded growth of 14% and remains the main geographic zone, representing 65% of turnover. Africa ranks second, with 19% of the total, an increase of 15% in 2017.

The financial information presented does not include the unconsolidated subsidiary in Saudi Arabia managed by Newrest and whose turnover totals €535 million for the year. Newrest therefore achieved a total turnover of €1.805 million in 2017.

Newrest took advantage of an exceptional market environment to bolster its financial capacity through a Euro PP that raised €140 million for its development.

As at 30 September 2017, Newrest’s net financial debt was particularly low, with a Leverage Ratio of less than 0.15.

In line with its rigorous global corporate social responsibility policy, Newrest pledged to purchase chicken eggs (in shells and liquid) from farms that use non-caging methods by 2025 throughout its international operations—a unique commitment for the inflight sector.

Concrete examples of the Group’s approach to promote sustainable development include the following: Once again this year, Newrest supported the “Entendre le Monde” association in Madagascar, and also transformed all of the lighting systems in its production units throughout the world by using LED (thereby reducing energy consumption in this area by 60%).

About Newrest

With origins in Group Catair in 1996, and founded by its Co-CEO’s Olivier Sadran and Jonathan Stent-Torriani, Newrest is the only major catering company active in all catering and related hospitality segments including airline catering, buy-on-board, duty-free on board, contract catering, remote site and support services, rail catering, airport and motorway retail.

With 2017 revenues under management of almost 1.8 Billion Euros and more than 30,800 employees world-wide in 49 countries, Newrest is also the first largest ‘independent’ airline caterer world-wide.

At year end closing 2017 (September) Newrest is 88,6% management-owned, with its managers holding its capital (310 managers). The remaining capital is held by Naxicap Partners (5.2%), Ardian (ex. Axa PE) (2.8%), Duti Participations (1,9%) and BNP Paribas Dvpt (1.4%).

Newrest is committed to constant improvement and innovation for its clients, the well-being and progress of its employees and managers, a sustainable and durable development of the company, and total respect of social and environmental values in all of its activities.