Newrest Group reports 32 percent growth in 2023
Newrest Group looks back on 2023 financial results
Newrest Group saw a strong increase in activity as it posted financial results for its year-end on September 30. The company reported a 32 percent growth in revenue compared to 2022. The French group, created by Olivier Sadran in 1996, offers catering and logistics services adapted to all segments of out-of-home catering, including the air sector.
Newrest Group reached a milestone in 2023 by achieving a turnover of €2.22 billion (US$2.41 billion), exceeding €2 billion (US$2.1 billion) for the first time, it said in its press release. This achievement 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 strengthened its presence in the mining camp market in South America and Africa, where it signed and renewed numerous contracts.
In 2023, Newrest implemented its €60 million (US$65.7 million) investment plan to modernize and create production centers to reduce its carbon footprint and increase productivity by implementing its digital unit concept. This comes in response to robotics and automation being integrated across the catering industry.
The Group achieved a significant financial performance for the second year in a row, with an EBIT of 8.7 percent, despite the inflationary surge that affected all the markets in which it operates.
“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 to 2024 financial year is to increase our turnover by five percent with the ambition of consolidating our strengths and satisfying our customers,” said Luc Gérardin, Group Chief Financial Officer.
A look at the revenue breakdown
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 percent of the Group’s turnover. The operating model is evolving towards greater integration and transparency with customers to meet future challenges.
The opening of Scandinavian Airlines’ three 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 percent throughout the year.
At Roissy, Montreal and Johannesburg, the teams dealt with significant commercial development with the signing of airlines such as Emirates Airlines and Cathay Pacific.
To take on further development, the Group is investing in its production units around the world.
“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,” said Sadran, Co-CEO and Founder.
Remote sites services and concession catering
Remote sites services and concession catering, account for 33 percent of the Group’s business. Major contracts signed for a value of €100 million (US$1095 million) in 2023 strengthened 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, the Group signed a major contract with the country’s largest clinic operator.
In these segments, the Group aims to break the codes and be innovative in all aspects that affect users’ daily lives including restaurant concepts aligned with the latest trends, a digital experience focused on omnichannel, multisensory cuisine, education on nutritional content and awareness of food waste.
“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,” said Aurélie Gueguen René, COO.
Transformation to benefit customers and employees
The Group’s desire is to maintain a close relationship with its customers, the press release said. The organization evolved 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 the development of its managers, operational responsibility lies at the national level. The head office functions have been streamlined to increase the efficiency of the transmission of directives related to the Group’s strategy.
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 percent 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,” said Jonathan Stent-Torriani, Co-CEO of the Group.
Corporate social responsibility for employees
Since 2021, the Group’s societal responsibility has been structured around its CSR charter “Be the Change”. Locally, Newrest is developing initiatives that have an 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 percent of the Group’s consolidated annual net income (more than €2 million [US$2.1 million]). Half of the funds will be allocated to projects emanating from its teams all over the world in favour of the fulfillment, development and protection of the individual, the company said.
The Group is taking a step in addressing its social issues with 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.
“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, fulfillment, and commitment of our teams,” said Marie Chiner, member of the Executive Committee.
Outlook for 2024
Next year will mark the completion of several important projects for the Group. The opening of the Wissous inflight catering unit near Orly in March will be the culmination of 12 months of research and development to create a fully automated trolley preparation line, dedicated to onboard aircraft sales. Teams will be able to monitor all logistical and stock management aspects without having to intervene physically, assisted by AI.
