- Revenue growth of +32%
- EBIT of 8.7%
- A €60 million investment plan
- 96,5% of the capital is held by the Group’s management.
Toulouse, November 23, 2023 – Newrest, a major player in out-of-home catering, posted remarkable financial results for the year ended September 30, 2023, with a 32% growth in revenue compared to 2022. The French group, created by Olivier Sadran in 1996, stands out on the global market for a diversified offer: Newrest offers catering and logistics services adapted to all segments of out-of-home catering, whether in the rail and air sector, in the management of remote sites or concession catering, as well as facility management solutions.
Newrest group reached a historic milestone in 2023 by achieving a turnover of €2.22 billion, exceeding €2 billion for the first time. It is the result of dynamic organic growth, driven by the recovery of the aviation sector in the 34 countries where the group operates 88 airport catering units. The group has also been able to strengthen its presence in the mining camp market in South America and Africa, where it has signed and renewed numerous contracts, thus confirming its status as a world reference in this field.
In 2023, Newrest pursued its €60 million investment plan to modernize and create production centers with the aim of reducing its carbon footprint and increasing productivity by implementing its digital unit concept.
Innovation is at the heart of this approach. Robotics and automation are being integrated at an unprecedented level in the catering industry using real-time, AI-assisted data exchange with all stakeholders in the value chain.
The group achieved a significant financial performance for the second year in a row, with an EBIT of 8.7%. This result is even more important as it was achieved despite the inflationary surge that affected all the markets in which it operates.
Luc Gérardin, Group Chief Financial Officer: “The Group’s fundamentals remain very robust, with a strong increase in net cash. This is one of the necessary conditions for financing our innovation and growth projects. This is a testament to our ability to convert our profitability into investment capacity. Our objective for the 2023-2024 financial year is to increase our turnover by 5% with the ambition of consolidating our strengths and satisfying our customers. »
BREAKDOWN OF REVENUE BY BUSINESS SEGMENTS
The increase in airline activity was unprecedented throughout the year, with a peak during the 2023 summer season, allowing in-flight catering to account for 50% of the group’s turnover. The operating model is evolving towards greater integration and transparency with customers to meet future challenges.
The group’s know-how in the management of international hubs is mature. The opening of Scandinavian Airlines’ 3 hubs in Sweden, Norway and Denmark reinforces the onboard catering management activity for the based airlines. The Houston and Atlanta units, dedicated to United Airlines and Delta Airlines, remain the most important hubs managed by the group, with an increase in activity of more than 50% over the year. The operating model is now recognized. It is based on a high level of economic control and on the permanent and relevant analysis of information to achieve reliable predictive production that reduces waste.
At Roissy, Montreal and Johannesburg, the teams had to deal with a significant commercial development with the signing of leading airlines such as Emirates Airlines and Cathay Pacific.
To take on such an intense development in this segment, the group is investing in its production units around the world to be at the forefront of the transformation of the sector.
Olivier Sadran, co-CEO, and founder of Newrest: “Our employees are at the center of our attention. Our ambition, through our investments, is to create a safe working environment and focus them on high value-added activities through automation. The reliability of our processes and the ability of our teams to pass them on to new talents in a logic of performance and solidarity, is today a strong competitive advantage and generates career opportunities for all. »
Remote sites services and concession catering
These two segments account for 33% of the group’s business. Despite a very granular turnover, major contracts signed for a value of €100 million in 2023 strengthen Newrest’s position in the mining sector in Latin America (Rio Tinto, Continental Gold amongst others) and in the industrial (Renault) and penitentiary sector in the Maghreb. In France, the army commissary became the company’s most important account. In Qatar, it is in the healthcare sector that the group has signed a major contract with the country’s largest clinic operator.
In these segments, the ambition is to break the codes and be innovative in all aspects that affect users’ daily lives: restaurant concepts aligned with the latest trends, a digital experience focused on omnichannel, multisensory cuisine, education on nutritional content and awareness of food waste.
Aurélie Gueguen René, COO: “Our experience in managing airport retail concessions on all continents through the operation of national and international restaurant franchises allows us to be as close as possible to restaurant trends and thus rapidly evolve our culinary offer and restaurant concepts in other segments of out-of-home catering. This transversality is a source of innovation for us. »
In Europe, the development of new cross-border lines is confirmed and Newrest supports the railway companies that are part of this dynamic. This was the case in 2023 with the winning of the on-board and logistics contract for the Paris-Barcelona or Frankfurt-Bordeaux route. In Spain, OuiGo SNCF is strengthening its partnership with Newrest with the deployment of digital solutions on board. Finally, the extension of the contract with Eurostar allows the group to support this customer in its decarbonization projects.
A NECESSARY TRANSFORMATION FOR THE BENEFIT OF CUSTOMERS AND EMPLOYEES
The group’s desire is to maintain a close relationship with its customers. To do so, the organization evolves with a new distribution of operations and the creation of a division including France and the Maghreb. Europe is now divided between two Vice-Presidents.
To promote the sharing of best practices, innovation and, above all, the development of its managers, operational responsibility lays at national level, regardless of the number of business segments. The head office functions have been streamlined to increase the efficiency of the transmission of directives related to the group’s strategy and to be as close as possible to operational issues.
The highlight of 2023 is the significant increase in the number of employee-shareholders. Since its creation in 2005, the group’s capital sharing has been established as a lever for engaging its talents. 533 people currently hold 96.5% of the capital.
“Our talents are at the center of our managerial concerns. Their capital involvement is an asset for the realization of an ethical capitalism shared by all. This is the result of the group’s work and our high standards to keep our promises to our customers and more generally to our partners”: Jonathan Stent-Torriani, co-CEO of the group.
CORPORTE SOCIAL RESPONSABILITY CARRIED OUT BY EMPLOYEES.
Since 2021, the group’s societal responsibility has been structured around its CSR charter “Be the Change”. At local level, Newrest is developing initiatives that have an ever-increasing impact over the long term. The group positions itself as a link between the local economic, environmental, and social fabric and the requirements of its customers.
In 2023, the group echoed the aspirations of its employees who want to be actors of change within their community. Newrest is committed to the individual by creating its foundation, called “Foundation Unlimited”. It accounts for 1.5% of the group’s consolidated annual net income (more than €2 million). 50% of the funds will be allocated to projects emanating from its teams all over the world in favor of the fulfillment, development, and protection of the individual.
The group is taking a new step in addressing its social issues with the implementation of a minimum level of social protection in the event of a life accident for its 40,000 employees in 54 countries. Newrest is financially committed to helping affected families around the world in the form of additional leave, death benefits and education pensions.
Marie Chiner, member of the Executive Committee: “Our strategic plan for 2026 is ambitious. We want to provide our employees with the best working conditions. Providing support in difficult times, promoting internal mobility, and giving people the means to express themselves are all levers that promote the well-being, fulfilment, and commitment of our teams. »
The year 2024 will be marked by the completion of several important projects for the group.
The opening in March 2024 of the Wissous inflight catering unit near Orly will be the culmination of 12 months of research and development to create a fully automated trolley preparation line, dedicated to on-board aircraft sales. Assisted by artificial intelligence, teams will be able to monitor all logistical and stock management aspects without having to intervene physically. A first in the airline industry.
In the rail sector, OBB is launching its new cross-border night train lines in December 2023 between Berlin and Brussels or Paris. Newrest’ Austrian team will showcase its know-how and the group’s digital and culinary innovations.
Finally, kiosk ordering system on board SNCF TGVs will be deployed on a large scale throughout 2024. More than 28 months of project were needed to create the kiosk and integrate it into the TGV trains.
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 associated services: airline catering, buy-on-board, duty free on board, concession catering, remote sites and facility management services, rail catering, airport and motorway catering concessions.
With its 40,000 employees in 54 countries, the Newrest Group, with a turnover of €2.221 billion in 2023, is also the world’s leading independent player in airline catering.
At the end of the 2023 financial year (September), 96.5% of the group’s capital was held by its management (533 employees). Naxicap, which has been with Newrest for more than 15 years, holds 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 progress of its employees and managers. The sustainable development of the company and respect for social and environmental values are at the heart of its activities.
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