Groupe CRIT : Third quarter revenue - A gradual recovery of activity driven by staffing

Press release

October 21st 2020

Third quarter revenue

A gradual recovery of activity driven by staffing

Groupe CRIT, in €M (1)	2019		2020			Change			Constant perimeter
					and exchange rate
Q1	582.4		505.8		-13.2%			-13.6%
Q2	650.0		308.3		-52.6%			-52.7%
Q3	649.5		456.0		-29.8%			-29.2%
Total	1 882,0		1 270,1			-32.5%				-32.5%
of which international	442,0		324,4			-26.6%				-26.5%

After a first half marked by an unprecedented impact of the covid crisis on the main customer sectors of the Group (revenue down 33.9%, 52.6% in the 2nd quarter), the third quarter revenue amounted to € 456.0 million, down 29.8%. This significant improvement is a positive performance in a contrasted environment. Over the months, a gradual recovery takes shape, illustrated by a decrease in activity to -22.6% (at constant exchange rates) for the month of September 2020.

In France, the group posted revenue of € 347.0 million for the third quarter, down 30.1%. Over the first nine months of the year, the decline was 34.3% to € 945.6 million. International activities continue to hold up better, with revenue down 26.6% over nine months (-26.5% at constant exchange rates), including -26.4% in the third quarter.

Temporary staffing (86,5% of 9 months activity): confirmed recovery

In the third quarter, the division's revenue came to € 404.6 million, down 23.4% compared to the same period in 2019. This change compared with the decrease of 47.4% recorded in the second quarter, confirms the gradual improvement in activity. Over the first nine months of the year, revenue amounted to € 1,098.1 million (2), down 28.7% compared to 2019.

In France, activities have remained logically penalized by hospitality and aeronautics sectors, still impacted by the measures of health restrictions and the fragility of the demand. However, the key sectors of automotive and construction industries confirmed their recovery. In this context, revenue in the third quarter came to €303.7 million, a decline of 24.2% compared to the 51.4% decrease recorded in the second quarter.

For the first nine months of the year, turnover reached € 805.4 million, down 31.1%.

International third quarter revenue amounted to € 100.9 million, down 21.1% compared to the same period of the previous year (-18.2% at constant exchange rates). During the quarter, activity remained contrasted in the United States with revenue of € 57.7 million, down 22.9% at constant exchange rates. Spain confirmed its faster recovery with a decline in activity limited to 4.7% in the quarter. For the first nine months, international revenue came to € 292.7 million, down 21.1% (-21.0% at constant exchange rates).

Multiservices division: airport services still heavily impacted despite an improvement

Multiservices division posted revenue of €182.1 million (2) in the first nine months, down 49.7% compared to the same period in 2019.

Airport activities remain at the heart of this change. After a second quarter decrease of 82.3% impacted by the near stop of air traffic, revenue in the third quarter improved significantly to €38.2 million, down 63.4%.

In accordance with expectations, the situation remains difficult, as the persistence of the covid crisis continues to weigh on demand and the ability of airlines to operate under normal conditions.

In this context, the group will continue in the coming months to apply strict discipline in cost management and investments. Beyond the adaptation measures taken internationally, negotiations on collective performance agreements continue in France and the workforce in sub-activity continues to benefit from the specific measures of partial activity implemented to support this crisis unprecedented in the sector.

Given its solid financial situation and the recovery initiated in its core business, Groupe CRIT reaffirms its confidence in its ability to weather the crisis.

	Detailed analysis of foreign exchange and perimeter impacts
			Revenue		Change			Organic		Currency		Perimeter
			in million of euros		2020/2019			growth		impact (3)		impact (4)
			9M 2019		9M 2020
	Staffing & recruitment								(28.6)%
		1 539.7		1 098.1		(28.7)%			0.1%		0.0%
	Multi-services		361.7		182.1		(49.7)%		(49.7)%		0.0%		0.0%
	Inter-segment		(19.5)		(10.1)		(48.0)%		(48.0)%		0.0%		0.0%
	TOTAL GROUP		1 882.0		1 270.1		(32.5)%		(32.5)%		0.0%		0.0%

1. Unaudited data
2. Excluding inter-segment eliminations
3. The exchange rate impact is calculated by applying the previous year's exchange rates to current-year revenue denominated in foreign currencies.
4. Changes in consolidation scope are calculated by restating revenues for:
5. • the contribution of entities acquired during the current year and the contribution of entities acquired the previous year until the anniversary date of their acquisition,
   • for entities sold during the current year, the contribution to revenues during the months of the previous year for which the entities are no longer consolidated in the current year and, for entities sold the previous year, the contribution to revenues of the previous year until the date of their sale.

Next release

2020 Q4 revenue: 27 January 2021 after closing of the stock exchange

Groupe CRIT is a leading company in staffing and airport assistance in France and abroad. The Group is listed on Euronext Paris (Compartment B FR0000036675) and is included in the CAC All-tradable, CAC Allshares, CAC Mid&Small, Euronext Family Business and Gaïa indices.

CONTACTS

Groupe Crit	Actifin
Michèle Chartier [e-mail]	Stéphane Ruiz [e-mail]
Tel: [phone]	PR : [e-mail]
www.groupe-crit.com	Tél : [phone] www.actifin.fr