PARIS, Dec 6 (Reuters) - Shares in French catering group Elior slumped on Wednesday, as the company’s results and financial outlook disappointed investors.
Elior shares were down 10.7 percent at 16.33 euros in late session trading, touching its lowest level since May 2015.
Elior predicted on Wednesday that organic sales growth would accelerate to at least 3 percent in the 2017/18 fiscal year from 2.3 percent achieved in the 2016/17 fiscal year ended Sept. 30.
Elior, which competes with Sodexo and Compass , also forecast that its adjusted EBITDA (earnings before interest, tax, depreciation and amortisation) margin would remain stable in the current year after declining by 20 basis points in the 2016/17 fiscal year.
“This target seems disappointing, but the new management team is no doubt showing a bit of caution before it sets out its new action plan,” said analysts at brokerage Midcap Partners.
Analysts at Berenberg kept a “hold” rating on Elior shares but also described Elior’s outlook as “disappointing.” (Reporting by Sudip Kar-Gupta and Laetitia Volga; Editing by Dominique Vidalon)