Edenred (EDEN) H1 2024 earnings summary

Executive summary

• H1 2024 revenue reached €1,395 million, up 18.5% as reported and 18.3% like-for-like, with strong growth across all business lines and geographies.

• EBITDA rose 23.7% to €597 million, with margin improving to 42.8%, and net profit (Group share) increased 16.3% to €235 million year-over-year.

• Funds from operations reached €400 million, up 18.3%, with strong cash generation and net debt stable at €1.88 billion.

• Strategic acquisitions (Reward Gateway, Spirii, RB in Brazil, IP in Italy) and successful integration efforts expanded the solutions portfolio and geographic reach.

• Continued execution of the Beyond 22-25 strategy, with further ESG recognition and robust client wins across all business lines.

Financial highlights

• Operating revenue grew 16.0% as reported and 15.4% like-for-like; other revenue surged 51.5% as reported and 57.8% like-for-like.

• EBITDA margin improved to 42.8% (up 1.8 pts year-over-year and 2.7 pts like-for-like); operating EBITDA margin up 0.6 pt as reported and 1.4 pts like-for-like.

• Net profit (Group share) reached €235 million, up 16.3% year-over-year.

• Free cash flow for H1 2024 was €18 million, after €97 million in recurring capex.

• Net debt at €1.88 billion as of June 30, 2024, with strong liquidity and S&P A- rating.

Outlook and guidance

• Full-year 2024 EBITDA expected between €1,230 million and €1,300 million, up from €1,094 million in 2023.

• Other revenue for 2024 projected at €230–240 million, with a minimum of €210–215 million expected in 2025.

• Ambition to exceed €5 billion in total revenue by 2030, leveraging digital platform and recent acquisitions.

• Operating EBITDA margin and free cash flow conversion expected to improve further in 2024 and remain above 70% in 2025.

• Double-digit EBITDA growth targeted beyond 2024, driven by under-penetrated markets and expanded solutions.