Prosegur Cash (CASH) Q3 2024 earnings summary

Executive summary

• Sales increased by 1.7% year-over-year to €1,523M, with organic growth in all geographies, but offset by significant negative currency effects.

• Net profit grew 4.1% year-over-year, supported by lower financial expenses and tax rate, reaching €66M.

• Transformation Products now account for 32.1% of total sales, up 30 basis points from the previous quarter, with double-digit growth on a like-for-like basis.

• Free cash flow generation was strong at €63M in Q3, totaling €92M year-to-date.

• Net financial debt reduced by €28M quarter-over-quarter to €898M.

Financial highlights

• EBITDA for the nine months was €275M, down 4.3% year-over-year, with margin at 18.0%.

• EBITA margin improved by 70 basis points quarter-on-quarter to 11.8%, though down year-over-year due to currency effects and investments.

• EBIT was €160M (10.5% of sales), down 14.3% year-over-year.

• Earnings per share rose 4.5% year-over-year to €0.0432.

• Capital expenditure was €67M, 8% lower than the prior year, focused on growth and IT investments.

Outlook and guidance

• Q4 is expected to show significant improvement due to easier comparables and normalization of FX and perimeter effects.

• Full-year sales are expected to be slightly below €2 billion, with EBITDA just under €250M, potentially higher if FX remains stable.

• Leverage ratio is expected to fall within the 2.5x internal threshold by year-end, with further improvement in 2025.

• Transformation Products expected to continue double-digit growth, with penetration over sales rising.

• Cash flow generation is expected to remain strong in Q4 and improve further if Latin America stabilizes.