Toulouse, 17th November 2022 – Newrest, a specialist in out-of-home catering, which closed its consolidated financial statements on September 30, 2022, achieved a good financial performance marked by an 84% increase in revenue over 2021. The French group founded by Olivier Sadran in 1996 is one of the world leaders in its sector thanks to its positioning: Newrest has developed its expertise in all segments of out-of-home catering with activities in rail and inflight catering, concession catering remote site services and food services.
The group started the 2021-2022 financial year having won a large number of customers and renewed major contracts providing Newrest €3.3 billion of additional revenue over the next 7 years, particularly in the United States. Some segments have had their volume of activity increase by more than 130% sometimes over a short period generating the creation of more than 5,000 new jobs throughout 57 countries. Europe and France remain the group’s leading markets. Over the past five years, significant investments have been made in Northern America which has become Newrest’ third largest market.
In 2022 Newrest expanded its service offering in certain markets with facilities management (FM) services. This development will significantly contribute to group’s diversification strategy and should ultimately become one of Newrest’ area of expertise.
Financial ambitions of the group have been significantly surpassed, by 19% over its budgeted turnover and by 10% over its turnover in 2019. EBIT margin is in line with budget expectations at 7.8% despite inflation-related uncertainties.
Luc Gérardin, CFO of the Group: “Group’s financial performance, which is the result of the commitment of all its employees, lies in its ability to have maintained negative net financial debt and increased its net cash level for the third consecutive year.”
Thanks to its enhanced investment capabilities and its efficient operational management, the group expects consolidated sales to increase by more than 15% for the year 2022-2023.
BREAKDOWN OF REVENUE BY BUSINESS SEGMENTS
The recovery in air traffic since January 2022 has enabled the airline catering segment to return to the forefront of group’s activities and now represents 43% of consolidated revenue thanks to American and European subsidiaries and the dynamism of the African market.
Since fiscal year 2018 – 2019, revenue by activity is broken down as follows:
|Sector of activity||2018-2019
6 months Covid
12 months Covid
|Remote site services and food services||34%||46%||58%||39%|
|Airport concession catering||4%||3%||3%||3%|
|Consolidated revenue||€1 527 m||€1,074 m||€896 m||€1,649 m|
2022 was marked by the launch of several major contracts and the commissioning of inflight catering units in key markets for the future of the group. The most significant was the takeover of the Houston unit dedicated to United Airlines. More than nine hundred new employees serving 400 flights per day were trained to company’s methods. Integration with United Airlines’ information systems and implementation of the operating system developed by Newrest (WINREST) were decisive for the success of the operations. This operational model proved its effectiveness in Atlanta where the group is operating Delta Air Lines‘ global hub for almost 2 years with an equivalent number of flights per day.
Most of the European network has been mobilized on behalf of the company easyJet. Under this new contract, additional logistics bases have been created in Basel-Mulhouse, Berlin, and Porto.
Olivier Sadran, founding Co – President of Newrest, said: “Our teams have demonstrated the coherence of our model driven by innovative solutions offered to airlines. Doubling our level of activity in the airline catering sector was made possible thanks to the maturity of our processes and the constant search for operational performance. For this, I would like to thank all our collaborators who promote our group worldwide. Our financial capacity and speed of execution are assets for the years to come.”
Remote site services:
Following the renewal of numerous contracts with major players in the mining and oil sector, the group is structuring itself to become the partner of reference in this business segment. A new sales team has been set up under the leadership of Emmanuel Garrigues. The 360° concept was developed by the group to break the codes of remote site services. Restaurant concepts in line with the latest trends, a digital experience to facilitate the daily lives of residents, a renewed approach to health and safety at work are some examples of areas of improvement proposed by Newrest to its customers and prospects.
The group’s main concern in this segment remains its social responsibility. In Africa, Latin America and the Pacific, the company relies on the 9 pillars of its CSR charter “Be the Change” to bring to life local content having a long-term impact. Newrest positions itself as the link between the local economic and social ecosystem and the requirements of oil and mining multinationals.
Despite the economic situation, contracted food services remain very dynamic for the group and is in some cases like retail catering. Newrest is attentive to new consumer expectations and continues to offer original solutions in terms of culinary and digital experience.
Education and healthcare are priority sectors for development. Services to public administrations, including penitentiary and army, are also targeted.
“The granularity of the food service segment requires great attention from our teams on a daily basis in order to deliver an ambitious retention rate of 98%. Recruiting and retaining new employees in this segment were major challenges that our teams were able to meet in 2022,” explains Jonathan Stent-Torriani, Co-President of Newrest.
Rail catering benefits from the growing popularity of the train as an alternative means of transport, especially in Europe. Group’s approach to this market, in which it is the world leader, is driven by innovation for both high-speed and night trains. The International Rail Catering Group (IRCG), the world’s leading authority on rail catering, has rewarded the group for its digital innovations.
Commissioning of new high-speed train in France and night train in Austria will start in 2024. Newrest supports its customers in designing tomorrow’s passenger experience.
The group aims to reach again revenues of more than €300m in 2023 in this segment.
TRANSVERSALITY OF BUSINESS ACTIVITIES AND CAPITAL SHARING, KEYS TO THE GROUP’S ORGANIZATION
The strong development of the group since 2005 quickly showed the benefits of an organization that promotes the transversality of its business activities. Operational responsibility is more than ever located at the country level regardless of the number of sectors of activity. This organization promotes sharing of good practices and above all, innovation, and personal development of our managers.
The division of operational responsibilities between two COOs (Chief Operating Officer), Aurélie Guéguen René and Olivier Laurac, has been decisive in the resilience of the company since 2020.
Foster a local approach to strategic implementation, with the support of vice-presidents in charge of multi-business geographical region, makes it possible to quickly find the appropriate solutions necessary for the smooth-running of the company.
This feeling is reinforced by the group’s historical choice to share Newrest’s ownership. 96.5% of Newrest’s share capital belongs to 400 employees.
Aurélie Guéguen René COO Africa, Middle East and Asia comments: “The participation in the capital of many managers facilitates the implementation of a responsible capitalism understood by all. It is the result of the collective’s effort and our great rigor to respect our commitments to our customers and more broadly to our co-contractors. »
CSR COMMITMENTS INITIATED BY THE GROUP’S EMPLOYEES.
For the second consecutive year, the group has launched its annual “Green Super Heroes” competition, which aims to highlight the initiatives of its employees in the context of its CSR (Corporate Social Responsibility) charter “Be the change”. About fifty projects were carried out by 30 countries.
Olivier Laurac, COO Europe and Americas: “The group’s social and environmental priorities until 2025 are defined in the CSR charter and it is the responsibility of the countries to bring this collective ambition to life by bringing projects closer to our employees and customers. It is an innovative approach that has shown its effectiveness. For us, societal change is everyone’s responsibility.”
Created in 1996 under the name Catair, the Newrest group, chaired by Olivier Sadran and Jonathan Stent-Torriani, is today the only operator to operate in all sectors of catering and related services: inflight catering, buy-on-board, duty free on board, food services, remote site and support services, rail catering, airport concession catering.
With its 34,000 employees in 57 countries, the Newrest Group, whose turnover amounted to €1.649 billion in 2022, is also the world’s leading independent player in inflight catering.
At the end of the financial year 2022 (September), 96.5% of the group’s capital was held by its management (400). Naxicap has been a shareholder of the group for more than 15 years with 3.5% of the capital.
Newrest is committed to a process of constant improvement and innovation in the services offered to its customers, as well as in the well-being and progression of its employees and managers. The sustainable development of the company and the utmost respect for social and environmental values are at the heart of its activities.
Press contact: Image 7
Laurence Heilbronn – email@example.com ; 06 89 87 61 37
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