Prosegur Compañía de Seguridad (PSG) Q2 2024 earnings summary

Executive summary

• Sales/revenue grew 6.9% year-over-year to €2,347.5M–€2,348M, with strong organic growth and Indian operations consolidation.

• EBITA reached €146.9M–€147M, down year-over-year due to FX, restructuring in Australia, and Forex investments.

• Net profit attributable to owners declined to €27.6M, down from €35.5M in H1 2023.

• Security led growth with 12% sales increase; Alarms and Cybersecurity posted double-digit growth.

• Partial takeover bid by Gubel S.L. for 13.23% of share capital; Yirayira International acquired 8%.

Financial highlights

• Revenue: €2,347.5M (+6.9% year-over-year).

• EBITDA: €255.6M (margin 10.9%).

• Net profit declined 17.3% to €35.8M; consolidated net profit down 22.2% to €27.6M.

• Net financial debt: €1,164.1M–€1,360M; net debt/EBITDA at 2.8x.

• Cash and cash equivalents: €402.8M at 30 June 2024.

Outlook and guidance

• Repricing initiatives and price reviews expected to support margin recovery in H2.

• Management expects continued growth and improved profitability in H2 2024.

• Expansion CAPEX remains controlled at 1.9% of sales, focused on Transformation Products.

• Alarms segment to benefit from increased contract volume and higher ARPU, especially in Latin America and Portugal.

• Recurring cash run-rate for Alarms business estimated at €60M per year.