Prosegur Cash (CASH) Q2 2024 earnings summary

Executive summary

• Sales reached €998 million in H1 2024, up 1.9% year-over-year, with Q2 standalone sales up 5.1% and robust organic growth across all geographies.

• Transformation Products, especially Cash Today and Forex, grew double digits and now represent 31.8% of total sales, supporting diversification.

• EBITA margin improved by 120 bps quarter-on-quarter to 11.3% for H1 2024, though down from 13.2% in H1 2023 due to inflation and currency headwinds.

• EPS increased by 5.2% year-over-year, driven by lower financial expenses and improved tax rate.

• Free cash flow generation was strong at €28–29 million in Q2 and H1, with a 73% conversion rate.

Financial highlights

• EBITDA for H1 2024 was €177 million (17.8% of sales), with a quarter-on-quarter improvement of 110 bps.

• Net profit reached €39 million, up 4.5% year-over-year; consolidated net profit was €38 million, up 2.6%.

• EBITA margin for H1 2024 was 11.3%, down from 13.2% in H1 2023.

• EPS improved to €0.0258 (2.58 euro cents) per share.

• Free cash flow conversion remained strong at 73%.

Outlook and guidance

• Confident in achieving or exceeding consensus EBITDA for the year, with a strong H2 expected from margin recovery and regional improvements.

• Profitability is expected to catch up in H2, with leverage projected to fall below 2.5x by year-end.

• Ongoing restructuring in Australia and expansion of the Forex business are expected to support future growth, with most CapEx already completed.

• Management expects continued robust organic growth, especially in Transformation Products, and ongoing resilience in cash usage.

• Focus remains on offsetting inflationary and currency impacts through pricing and operational efficiency.