Eulen, a group owned by María José Álvarez Mezquíriz, is behind the maintenance of Real Madrid’s grass, the monitoring of the Goya Awards gala, and the lighting of the walls of Ávila. The company, with 75,500 employees, has a discreet profile, except when some news resonates in its quiet headquarters outside Madrid. Recently, there was controversy over a cleaning job offer for Benidorm that asked for a “high level of grooming”. Juan Miguel Sucunza, the new executive vice president, acknowledges that mistakes are made but downplays the issue, focusing on the thousands of daily actions taken by the company.
Eulen, which generated 1.720 billion euros in revenue in 2023, operates in 12 countries offering a wide range of services such as cleaning, maintenance, environmental services, security, human resources, and social and healthcare services. Despite its large revenue, the company has a tight profit margin, with just 0.7% of revenue in 2022. The competition in the sector has intensified with the entry of new players following the restructuring of construction companies like ACS, Ferrovial, Sacyr, and OHLA, all offloading their service divisions.
Unlike other companies that have been acquired by investment funds seeking short-term returns, Eulen remains a family-owned business with the president holding 100% of the capital. An agreement was reached with her siblings to resolve a family dispute over the company’s legacy. Sucunza’s goal is to grow the business organically by 8% annually. The focus is on the people, with opportunities seen in expanding services and markets both locally and internationally, particularly in the United States where Eulen currently operates at airports in Miami, New York, Washington, and Tampa.
In Spain, where Eulen generates 1.350 billion in revenue, the company is facing challenges in passing on the increased costs due to salary hikes to its clients, especially in public contracts with restrictions on renegotiating terms. Another concern is the rising absenteeism rate, which has reached over 10% in some regions. The company is looking to improve efficiency through technology and productivity, addressing the issue of increased absences which are now more common due to psychological reasons.
Eulen’s approach to growth is methodical and cautious, focusing on specialization, adding technology, and providing excellent service to maintain a high customer retention rate. The company is investing in innovation, entering new sectors like cybersecurity, and is committed to managing their diverse range of services effectively. The financial position is strong with a debt to EBITDA ratio of only two times, indicating a healthy financial standing. The company’s strategy revolves around managing its wide range of services effectively to ensure sustainable growth and stability in the long run.
