Newrest secures its financial position following a successful 20-21 fiscal year

Europe

America

North africa

South africa

Orient

Asia

Newrest achieves a quality financial performance in 2020-21

In an unprecedented period, Newrest has managed to win many clients and to renew major contracts that will provide the company with €3.3 billion of additional revenue over the next 7 years.

The group’s financial objectives have been achieved. Despite revenues of €896m, down 41.3% compared to FY 2018 – 2019, EBIT and EBITDA are equivalent in percentage terms to the pre-covid reference year. This is the consequence of a great deal of rigor in the management of all expense items in an environment of uncertainty that has persisted throughout fiscal year 2020 – 2021. The major element remains the improvement in its liquidity level and a negative net financial debt with a leverage ratio of -0.61.

Despite the devastating effect of the pandemic on various activities of the Group, Newrest has been able to reinforce its investment capacities and its operational excellence thanks to the constant involvement and mobilization of its 30,000 employees. The 2021-2022 budget forecasts a consolidated turnover increase of more than 50% compared to 2020-2021.

The Group’s business segments have been impacted in various ways by the health situation. The concession and base management sector now account for 58.3% of consolidated revenues, thanks to subsidiaries in France, Africa, South America and the Mediterranean region.

Loyalty, digitalization, and innovative investments: ingredients for a sustainable financial situation in times of crisis

Designing solutions in collaboration with its customers and prospects by positioning the consumer experience at the heart of change has been an important factor in Newrest’s commercial success in 2021. In particular, the group has created an innovative contractual partnership model based on transparency and the adjustment of resources mobilized according to the activity.

Three major clients have signed up to this model. In the United States, Newrest renovated a unit in Atlanta dedicated to Delta Airlines, the airline’s main hub. United Airlines entrusted Newrest with a major outsourcing project for its inflight catering services activity in Houston. In Europe, Scandinavian Airlines is the first airline to adopt this model.

To strengthen its presence in this market, Newrest has invested over €40 million in Germany and Scandinavia in acquisitions and capex, markets that are looking for reliable alternatives in this sector. This proactive approach has enabled us to win important contracts with the leaders of the low-cost aviation market.

financial position

Rail catering is another sector where Newrest is a world leader. In the space of a few months, Newrest Wagons-Lits was able to renew its contract with the SNCF, the reference operator of high speed and regional trains, and with OBB, the European leader in night trains with a constantly evolving network. This sector represented a turnover of over €300 million in 2019.

The group’s diversification into concessionary catering has been initiated since 2016. In France and the Maghreb, numerous contracts have been signed in the education and medical-social sectors. The acquisition of Biomega Restauration in France and the planned acquisition of Sodexo Morocco strengthen the Group’s positioning in facilities for the elderly and in facilities management services.

Finally, the Group is bringing its expertise to the world’s largest mining sites as part of its remote sites management business. In South America, the partnership with Minera San Cristobal has been renewed. In Madagascar, the extension of the contract with Ambatovy is part of an ambitious program to modernize service delivery. In New Caledonia, in addition to the renovation of the work tool, the implementation of projects involving the local communities will be the Group’s priority at the Goro mine.

With a retention rate of 98% on its main contracts, the Newrest Group ensures its economic continuity. This testifies to the confidence that its clients have in it.

A new management structure

Faced with the challenges of the takeover, the Newrest group has chosen to set up a new organization based on internal promotion and experience. The highlighting of new employees who have recently joined the group completes this equation.

The group’s operations are now divided between two COOs (chief operating officers): Aurélie Gueguen René and Olivier Laurac. They are supported by seven vice presidents in charge of multi-business geographic regions to favor a local approach to strategic implementation.

The commercial matrix organization is centered around three vice presidents who are specialists in their fields: base management, airline catering solutions, and on-board train and aircraft sales.

This new organization responds to the need to coordinate the company’s resources according to the challenges generated by the business recovery. This encourages faster decision-making that is closer to customer expectations.