Edenred Group: Third-quarter 2024 results

29.10.2024

With double-digit top line growth in the third quarter, Edenred's diversified growth model is proving its worth, despite the worsening economic environment.

Edenred reports a sustained revenue growth in the third-quarter:

• Total revenue of €682 million in third-quarter 2024, up 11.5%1 like-for-like (up 6.1%1 as reported) versus third-quarter 2023
• Operating revenue amounted to €619 million in the third quarter, up 10.8% like-for-like. 
• Other revenue of €63 million in the third quarter, up 18.0% like-for-like despite interest rate cuts in the euro zone and Brazil
• For the nine months ended September 30, 2024, the Group’s total revenue stood at €2,076 million, up 15.9%1 like-for-like (up 14.1%1 as reported) versus the same period in 2023

Edenred continues to make the most of its structural growth drivers and the advantages of its digital B2B2C platform model

• Further growth in underpenetrated core markets, notably the SME segment, by capitalizing on the relevance of its offering and leveraging its commercial strength
• Successful expansion of its offering beyond meal vouchers in Benefits & Engagement and beyond multi-energy cards in Mobility to target a broader, non-regulated, addressable market, in line with its Beyond22-25 strategy
• External growth as an additional lever to consolidate its leading position, by integrating strong synergies and development potential into its portfolio businesses offering

A new milestone in Edenred's ESG strategy

• SBTi has approved Edenred's carbon reduction targets, aimed at achieving its ambition of being net-zero carbon by 2050

Confirmed outlook for 2024

• Edenred confirms its 2024 EBITDA target with a range narrowed between €1,245 and €1,285 million compared with a range of €1,230 to €1,300 million announced on July 23, 2024
• Edenred also confirms its commitment to cash generation with a free-cash-flow/EBITDA conversion rate of more than 70%.

Update on Italy and implications on 2025 outlook

• On October 23rd, 2024, an amendment calling for the introduction of a 5% cap on meal vouchers’ fees paid by merchants for private sector has been submitted as part of a Competitiveness Bill in Italy.
• Edenred considers that the introduction of such a cap would run counter to the principles of freedom to set prices set out in Italian and European commercial law. Edenred therefore plans to challenge the amendment in front of the Italian administrative Court and the European Commission. The Italian Association of Issuers of Meal Vouchers (ANSEB) and Edenred also plan to challenge the amendment in front of the Italian Antitrust Authority.
• Should the amendment be adopted, as it stands, the impact on the Group’s EBITDA would be around 60 million euros in 2025[6] and 120 million euros on an annual basis.
• Should the risk of a 5% cap on meal voucher commissions paid by merchants in Italy be confirmed, Edenred remains confident in its ability to continue to generate profitable and sustainable growth in 2025 and beyond, and is committed to generating organic EBITDA growth of at least 10% in 2025.
• If the Italian risk does not prove, Edenred reaffirms its ambition to achieve organic growth of at least 12% in 2025, as presented in its Beyond22-25 plan.

Bertrand Dumazy, Chairman and Chief Executive Officer of Edenred, said: "In a less favorable economic climate, Edenred has once again delivered double-digit organic progression in revenues. This solid performance illustrates the effectiveness of our diversified growth model. The slight slowdown in growth in some European countries, such as France, Germany and Central Europe, was partly offset by accelerating growth in Brazil and a sustained performance in Italy and Mexico. Our core businesses - meal vouchers and multi-energy cards - grew by more than 10%, while our Beyond Food employee benefits and Beyond Fuel mobility solutions recorded increases of over 15%, demonstrating the relevance of our expanded portfolio. In addition to our structural growth drivers, the integration of our latest acquisitions will enable us to benefit from additional growth levers. We are therefore confident in our prospects for the end of the year: we are confirming our EBITDA guidance. Despite the deterioration of the economic environment and the uncertainty of regulatory evolution in Italy, we will continue to generate profitable and sustainable growth in 2025 and beyond.”

Learn more:

Edenred Group: First-half 2024 results

Edenred Group: 2023 annual results