Edenred (EDEN) H1 2024 earnings summary

Executive summary

• First-half 2024 revenue reached €1,395 million, up between 18.5% and 20% year-over-year, with strong growth across all business lines and geographies, driven by organic expansion and strategic acquisitions including Reward Gateway, Spirii, and RB.

• EBITDA rose between 23.7% and 24% to €597 million, with margin improving to 42.8%, and net profit (Group share) increased 16.3% to €235 million.

• Strong cash generation with FFO at €400 million, up 18.3%, and net debt stable at €1.88 billion, supported by an A- rating from S&P.

• Double-digit growth achieved in both benefits & engagement and mobility segments, with robust client wins and successful integration of acquisitions.

• ESG performance improved, with higher EcoVadis and Sustainalytics ratings.

Financial highlights

• Operating revenue grew between 15.4% and 18% like-for-like to €1,271 million; other revenue surged up to 58% year-over-year to €124 million.

• EBITDA margin improved to 42.8% (up 1.8–2.7 pts); EBIT increased 22–22.4% to €488 million.

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

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

• Net debt stood at €1.88 billion at June 30, 2024, with strong liquidity and a €750 million undrawn credit facility.

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.