Edenred Group: First-half 2024 results

26.07.2024

Edenred continues to successfully implement its Beyond22-25 strategic plan and once again reports a strong increase in its earnings

Edenred confirms the strong momentum of the last several half-years

• Total revenue of €1,395 million, up 18.5% versus first-half 2023
  • Operating revenue up 16.0% to €1,271 million
  • Other revenue of €124 million, versus €82 million in first-half 2023, driven by business growth and higher interest rates
• EBITDA of €597 million, up 23.7% as reported, EBITDA margin of 42.8%, up 1.8 points
• Net profit, Group share of €235 million, up 16.3%
• Strong cash generation: funds from operations before other income and expenses (FFO) of €400 million, up 18.3%
• Net debt: €1.88 billion at June 30, 2024, stable relative to June 30, 2023

Edenred's ESG commitment is reflected in its improved ratings

• Ecovadis rating up 4 points, from 68 to 72
• Improved Sustainalytics rating, with a score of 15.2, up 1.6 points

Edenred continues to complete and expand its solutions portfolio

• Acceleration of B2B mobility services market penetration in Italy, with the acquisition of IP's energy cards business
• Strengthening of the Beyond Food offering with the acquisition of RB, a platform specializing in employee transport benefits in Brazil
• Strengthening of the Beyond Fuel offering with the acquisition of Spirii, a European SaaS platform dedicated to EV charging solutions
• Successful integration of Reward Gateway, a platform dedicated to employee engagement:
  • Robust operating and financial performance in first-half 2024
  • In the United Kingdom, over 60% of the integration synergies targeted for 2025 have already been achieved
  • Launch of the platform in France, Belgium, and Italy in the second quarter, with Luxembourg, Spain, Germany and Romania scheduled before the end of the year

Edenred sets its targets for 2024:

• EBITDA expected to total between €1,230 million and €1,300 million for full-year 2024 vs. €1,094 million for full-year 2023

Bertrand Dumazy, Chairman and Chief Executive Officer of Edenred, said: “Edenred confirmed the strong growth momentum it has seen over several half-years, driven by the relevance of its offering on vastly underpenetrated markets. Our Benefits & Engagement solutions continue to win over a growing number of companies as they address concrete issues of purchasing power, employee engagement and well-being in the workplace. The integration of Reward Gateway is underway, according to plan. Its rollout in Continental Europe enables us to offer our clients an even wider range of tools, enabling them to enhance their attractiveness, as well as the retention and commitment of their talents. Similarly, from energy cards to toll and maintenance services, our mobility solutions continue to prove successful with fleet managers. The acquisition of Spirii will enable us to support them even more effectively in their transition to fleets that are increasingly using electric vehicles. In line with our commitment to generate sustainable and profitable growth, the increase in our business has resulted in a further significant rise in all our financial indicators, from EBITDA to net profit. We are therefore more confident than ever in the success of our Beyond22-25 strategy, which enables us to capitalize on our leading technology platform to aggregate and deploy solutions that are ever more in tune with the needs of our 60 million users, 2 million merchants and 1 million corporate clients.”