Prosegur Cash (CASH) Q2 2024 earnings summary

Executive summary

• Sales for H1 2024 reached €998 million, 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, now represent 31.8% of total sales, growing double digits.

• EBITDA margin improved by 120 basis points quarter-on-quarter to 11.3% for H1 2024, despite restructuring costs in Australia and expansion in Forex business.

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

• Free cash flow generation was strong at €29 million for H1, with €28 million generated in Q2 alone.

• Net profit rose 4.5% year-over-year to €39 million in H1 2024.

Financial highlights

• EBITDA for H1 2024 was €177 million (17.8% of sales); EBITA was €113 million (11.3% margin), both down year-over-year due to margin pressure from inflation and FX.

• Net profit reached €39 million, up 4.5% year-over-year; EPS at €0.0258.

• Free cash flow conversion rate stood at 73%.

• Net financial position at period end was (€687 million), with leverage at 2.9x net debt/EBITDA, impacted by India consolidation.

• Gross profit for H1 2024 was €352.5 million, up from €344.2 million year-over-year.

Outlook and guidance

• Management expects a significant catch-up in profitability in H2, with all regions anticipated to perform strongly and leverage expected to fall below 2.5x by year-end.

• Ongoing restructuring in Australia, expansion in Forex, and India consolidation are expected to support future growth.

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