Elior - comment

The Q3 headline numbers are overshadowed by the continuing difficulty of improving margins in an inflationary environment. EBIT margins for the full year will be at the bottom end of the 1% - 2% previously guided. In the short term, however, the company has a comfortable €347m in liquidity. Elior needs to continue to cut costs and extract synergies from Derichebourg. However, the extension of the majority of its bank maturities to Jul-26 is significant. With most of its capital structure now falling due in three years, Elior has more breathing space. Call at 2 pm today.