PRESS
RELEASE |
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April 18, 2017 |
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FIRST-QUARTER
2017 REVENUE |
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Solid like-for-like growth in operating revenue
(up 10.0%) |
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Total revenue rose
by 29.6% as reported to €322.7 million, reflecting:
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Like-for-like growth of 9.6%
-
Scope effects, mainly related to
the acquisitions of Embratec and UTA, contributing 16.6% to
growth
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A slightly positive currency effect
over the period, adding 3.4%
-
Operating revenue
increased by 10.0% like-for-like to €304.9 million,
reflecting:
-
Growth of 6.7% in Employee Benefits
and an increase of 27.1% in Expense Management (on a like-for-like
basis)
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Balanced geographic distribution of
like-for-like growth, with operating revenue up 8.9% in Europe,
11.8% in Latin America and 9.1% in the Rest of the World (on a
like-for-like basis)
-
A more balanced
Group profile, with Expense Management accounting for 24.8% of
operating revenue versus 12.8% in the prior year
-
Full-year 2017
target confirmed: like-for-like growth of more than 7% in operating
revenue
-
Significant events
since the beginning of 2017:
-
Edenred became the number two
Europe-wide issuer of multi-brand fuel cards by increasing its
stake in UTA to 51%
-
The shift to digital accelerated in
France with the acquisition of assets related to Moneo Resto, a
fully digital meal voucher solution
-
The first initiative was carried
out in the Corporate Payment business line with the launch of a new
accounts payable management solution in Europe
-
The Group further strengthened its
debt profile through the success of its €500 million 10-year bond
issue
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|
Total revenue up 9.6%
like-for-like to €322.7 million
In € millions |
First-quarter 2017 |
First-quarter 2016 |
% change |
Reported |
Like-for-like[1] |
Operating
revenue
Financial revenue
Total revenue |
304.9
17.8
322.7 |
233.2
15.8
249.1 |
+30.7%
+12.7%
+29.6% |
+10.0%
+3.1%
+9.6% |
Total revenue
for the first three months of 2017 amounted to €322.7 million, representing a 9.6% like-for-like increase. Total revenue includes
operating revenue (up 10.0% like-for-like) and financial
revenue (up 3.1% like-for-like).
On a reported basis, total revenue
was up 29.6%, which reflects the 16.6%
positive scope effect, mainly related to the consolidation of
Embratec in Brazil and UTA in Germany and the 3.4% favorable
currency effect due to the combined impact of the appreciation of
certain currencies against the euro, particularly the Brazilian
real (up 28.7%), and the depreciation against the euro of other
currencies, such as the Mexican peso (down 8.1%), the Venezuelan
bolivar (down 68.4%), the British pound (down 10.4%) and the
Turkish lira (down 17.5%).
|
First-quarter 2017 |
In € millions |
Total revenue |
Reported
growth |
Like-for-like growth |
Europe |
161.4 |
+20.3% |
+7.9% |
Latin
America |
140.8 |
+47.2% |
+12.1% |
Rest of the
World |
20.5 |
+6.3% |
+9.0% |
TOTAL |
322.7 |
+29.6% |
+9.6% |
By region, like-for-like growth in
total revenue stood at 7.9% in Europe, 12.1% in Latin America and
9.0% in the Rest of the World.
Operating revenue: up 10.0%
like-for-like to €304.9 million
Operating revenue for the first
quarter of 2017 was up 10.0% like-for-like at
€304.9 million. On a reported basis,
operating revenue rose by 30.7%, taking into account the scope
effects, mainly related to Embratec in Brazil and UTA in Germany
for 17.5%, and positive currency effects for 3.2%.
Operating revenue
by business line:
|
First-quarter 2017 |
In € millions |
Operating revenue |
Reported
growth |
Like-for-like
growth |
Employee Benefits |
197.7 |
+10.4% |
+6.7% |
Expense
Management |
75.7 |
+154.2% |
+27.1% |
Complementary solutions |
31.5 |
+29.4% |
+13.3% |
TOTAL |
304.9 |
+30.7% |
+10.0% |
In Employee Benefits, operating
revenue amounted to €197.7 million in the first quarter of
2017, up 6.7% like-for-like from €179.1 million in the
prior-year period. The business line accounted for 64.8% of
consolidated operating revenue, versus 76.8% in first-quarter
2016.
Growth in Employee Benefits was
solid in Europe and particularly robust in Hispanic Latin America.
Brazil, on the other hand, recorded a decline in operating revenue
from Employee Benefits solutions, in an environment shaped by a
further rise in unemployment.
In Expense Management,
like-for-like growth in operating revenue came out at 27.1% with
particularly strong gains in Mexico, Argentina and, to a lesser
extent, Brazil. Expense Management operating revenue reached €75.7
million versus €29.8 million in the prior-year period.
On top of a solid like-for-like
performance, the increase by more than 2.5 times in Expense
Management operating revenue was also attributable to scope effects
relating to the integration of Embratec assets in May 2016 and to
the full consolidation of UTA since January, 2017. These
acquisitions have enabled the Group to achieve a more balanced
business profile, in line with the Fast Forward strategic plan. As
a result, Expense Management accounted for 24.8% of the Group's
operating revenue in first-quarter 2017 versus 12.8% in
first-quarter 2016.
The Group's Complementary
Solutions generated operating revenue of €31.5 million, versus
€24.4 million in the first quarter of 2016, reflecting
like-for-like growth of 13.3%. This business line accounted for
10.3% of Group operating revenue in first-quarter 2017, compared
with 10.5% in the prior-year period.
Operating revenue
by region:
|
First-quarter 2017 |
In € millions |
Operating revenue |
Reported
growth |
Like-for-like
growth |
Europe |
155.1 |
+22.1% |
+8.9% |
Latin
America |
130.4 |
+48.1% |
+11.8% |
Rest of the
World |
19.4 |
+6.8% |
+9.1% |
TOTAL |
304.9 |
+30.7% |
+10.0% |
In Europe,
operating revenue amounted to €155.1 million for the first quarter,
up 8.9% like-for-like, and represented
50.9% of Group operating revenue.
In France,
operating revenue rose 9.2% like-for-like, reflecting a good
overall performance from all product lines: Ticket
Restaurant® meal voucher
solutions, ProWebCE's solutions for works councils, and expense
management solutions for the light vehicle segment by
LCCC[2].
The rest of
Europe also put in a solid performance, with operating revenue
up 8.8% like-for-like. Growth reached more than 15%
like-for-like in Central Europe, on the back
of strong sales momentum, particularly in Romania. Organic growth remained strong in most of the
other European countries, particularly Belgium
and Italy.
In Latin
America, operating revenue came in at €130.4
million, up 11.8% like-for-like,
accounting for 42.7% of Group operating revenue.
In Brazil,
like-for-like operating revenue fell 0.9% in the first quarter,
hampered by the still challenging economic environment. In Employee
Benefits, the issue volume remained virtually unchanged from the
prior-year period on a like-for-like basis despite rising
unemployment, but operating revenue was down like-for-like. In
contrast, Expense Management - whose weighting more than doubled in
May 2016 following the acquisition of Embratec assets - posted
double-digit growth in operating revenue thanks to the success of
the ongoing integration of its operations under the Ticket Log
brand.
In Hispanic Latin
America, like-for-like operating revenue surged by 37.2%, with
like-for-like growth of more than 20% in Mexico. Operating revenue for the Employee Benefits
business line grew by more than 30% like-for-like, driven by strong
performances in Argentina, Mexico and Uruguay, as well as sharp
growth in Venezuela on the back of rising inflation. The Expense
Management business line delivered solid like-for-like growth of
more than 40%, led mainly by Mexico - which benefited from a strong
business performance, a favorable basis of comparison with the
prior-year period and a rise in fuel prices - and Argentina.
Operating revenue in the Rest of the World, which represented 6.4% of the
Group's operating revenue, climbed 9.1%
like-for-like in the first quarter of 2017, reflecting in
particular another period of strong like-for-like growth in
Turkey.
Financial revenue: up 3.1%
like-for-like to €17.8 million
|
First-quarter 2017 |
In € millions |
Financial revenue |
Reported
growth |
Like-for-like
growth |
Europe |
6.4 |
-11.2% |
-9.9% |
Latin
America |
10.4 |
+37.4% |
+14.8% |
Rest of the
World |
1.0 |
-2.8% |
+7.3% |
TOTAL |
17.8 |
+12.7% |
+3.1% |
Financial
revenue rose 3.1% like-for-like to
€17.8 million. The change is the result
of a 14.8% like-for-like increase in Latin
America, and a 9.9% like-for-like decline in Europe due to lower interest rates.
Significant
events since the beginning of the year
In January 2017, Edenred took a
further step to develop its Expense Management business line by
increasing its stake in UTA from 34% to 51%, thereby becoming the
number two Europe-wide player in multi-brand fuel cards, toll
solutions and maintenance and service solutions. Edenred now
manages 2.6 million fuel cards and toll solutions worldwide
and close to 6.3 billion liters of fuel. The Group's cards are
accepted at 70,000 affiliated service stations. UTA is fully
consolidated in Edenred's financial statements since January, 2017.
UTA's minority shareholders[3] have put
options in Edenred's favor covering the remaining 49% of
capital.
On March 8, 2017, Edenred
announced the launch in Europe of an accounts payable management
solution based notably on the use of virtual payment cards. The
first initiative to be marketed under the Edenred Corporate Payment
brand, the new solution allows companies to automate the management
of their transactions and relations with their suppliers thanks to
a unique digital platform guaranteeing the most appropriate method
of payment (wire transfer or virtual card) and real-time control of
transactions. With this solution, Edenred can also provide its
client companies with a financial incentive to use the virtual
card, enabling them to reduce internal transaction management
costs. Edenred's new offer is structured around the payment
issuance capacity of its subsidiary PrePay Solutions (PPS, 70%
owned by Edenred and 30% by MasterCard) together with CSI's
globalVCard payment platform via a licensing agreement. CSI is a
leading US B2B payments company specializing in customizable
virtual payments.
Edenred placed a €500 million 10-year 1.875% bond issue on
March 22, 2017. The issue was more than three times
oversubscribed, confirming the market's confidence in the Group's
credit quality. The new bond issue will provide financing for
general corporate purposes and, more particularly, for the Group's
growth projects. It will also contribute to repaying the
€510 million 3.625% bond issue due in October 2017. Maturing
in March 2027, the new bond issue has an immediate effect on the
average maturity of the Group's debt, increasing it to
5.4 years from 4.4 years at December 31, 2016, and
reduces its average cost of debt to 2.1% versus 2.5% at December
31, 2016.[4] After
repayment of the €510 million bond issue in October 2017,
Edenred will have a particularly well-balanced debt profile, with
no major repayments due before 2025 and average maturity extended
by around two years to 6.4 years.
Already the leader in France's
digital meal voucher market, with 340,000 Ticket
Restaurant® card holders,
Edenred is stepping up its shift to digital by acquiring the assets
related to Moneo Resto, a fully digital French meal voucher
solution. Moneo Resto has a portfolio of around
1,500 corporate clients, of which 90% are SMEs, for a total of
65,000 employee users. Thanks to this acquisition, more than
400,000 employees in France now have a digital meal voucher
solution issued by Edenred, representing 25% of the total number of
employee beneficiaries of Edenred's meal voucher programs.
Conclusion and
outlook
In the first quarter of 2017, the
Group recorded solid 10.0% like-for-like growth in
operating revenue, mainly reflecting like-for-like growth of
6.7% in Employee Benefits and an increase of 27.1% in Expense
Management. From a geographical perspective, growth was evenly
distributed across the Group's different host regions (Europe,
Latin America and Rest of the World), despite still tough economic
conditions in Brazil.
Total revenue
rose by 29.6% during the period, reflecting like-for-like
growth of 9.6%, scope effects of 16.6% and positive currency
effects of 3.4%.
Over the next few months, the
Group expects to see further mid-single-digit growth in operating
revenue for the Employee Benefits business line and another
double-digit increase in Expense Management operating revenue (on a
like-for-like basis).
Geographically speaking, the Group
expects to maintain a strong level of operating revenue growth in
Europe. In Hispanic Latin America, like-for-like operating revenue
growth is expected to remain robust. In Brazil, the Group expects a
still contrasted performance, with Employee Benefits to stay
adversely impacted by the high unemployment level and Expense
Management to continue its strong momentum.
Edenred confirms that it is
aiming for 2017 performances in line with the medium-term
outlook set out in its Fast Forward three-year strategic plan:
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Like-for-like growth in operating revenue of
more than 7%.
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Like-for-like growth of more than 9% in
operating EBIT.
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Like-for-like growth of over 10% in funds from
operations before non-recurring items (FFO).
UPCOMING
EVENTS
May 4, 2017: Annual Shareholders'
Meeting
July 25, 2017: First-half 2017
results
October 13, 2017: Third-quarter
2017 revenue
___
Edenred, which invented the Ticket
Restaurant® meal voucher
and is the world leader in prepaid corporate services, designs and
manages solutions for companies and public institutions seeking to
provide purchasing power, optimize their expenses and motivate
their teams. The Group's solutions are used across a network of 1.4
million affiliated merchants by 43 million employees working for
750,000 client organizations. The portfolio is built around two
main business lines:
-
Employee benefits (Ticket
Restaurant®, Ticket Alimentación, Ticket CESU, Childcare Vouchers,
etc.)
-
Expense management (Ticket Log,
Ticket Car, UTA, Ticket Clean Way, Repom, etc.)
Edenred also
offers complementary solutions for managing transactional
ecosystems, covering corporate payments (Edenred Corporate
Payment), incentives and rewards (Ticket Compliments, Ticket
Kadéos) and public social programs.
Listed on the Euronext Paris stock exchange,
Edenred operates in 42 countries, with close to 8,000 employees. In
2016, the transaction volume managed by Edenred amounted to almost
€20 billion.
Ticket
Restaurant® and all other tradenames of Edenred products and
services are registered trademarks of Edenred SA.
Follow Edenred on Twitter:
www.twitter.com/Edenred
___
CONTACTS
Media Relations
Anne-Sophie Sibout
+33 (0)1 74 31 86 11
anne-sophie.sibout@edenred.com
Anne-Sophie Sergent
+33 (0)1 74 31 86 27
anne-sophie.sergent@edenred.com
|
Investor and Shareholder Relations
Aurélie Bozza
+33 (0)1 74 31 84 16
aurelie.bozza@edenred.com
|
APPENDICES
Operating
revenue
|
|
|
|
Q1 |
|
2017 |
2016 |
In € millions |
|
|
|
|
Europe |
156 |
128 |
France |
50 |
45 |
Rest of Europe |
106 |
83 |
Latin
America |
130 |
88 |
Rest of
the world |
19 |
17 |
|
|
|
Total |
305 |
233 |
|
|
|
|
|
|
|
Q1 |
|
Change reported |
Change L/L |
In % |
|
|
|
|
Europe |
22.1% |
8.9% |
France |
11.7% |
9.2% |
Rest of Europe |
27.8% |
8.8% |
Latin
America |
48.1% |
11.8% |
Rest of
the world |
6.8% |
9.1% |
|
|
|
Total |
30.7% |
10.0% |
Financial
revenue
|
Q1 |
|
In €
millions |
2017 |
2016 |
|
|
|
|
|
|
|
Europe |
6 |
7 |
|
France |
3 |
3 |
|
Rest of Europe |
3 |
4 |
|
Latin
America |
10 |
7 |
|
Rest of
the world |
2 |
2 |
|
|
|
|
|
|
|
|
|
Total |
18 |
16 |
|
|
|
|
|
|
|
|
|
|
Q1 |
|
|
Change reported |
Change L/L |
|
In % |
|
|
|
|
|
|
|
Europe |
-11.2% |
-9.9% |
|
France |
-8.5% |
-8.5% |
|
Rest of Europe |
-13.1% |
-10.8% |
|
Latin
America |
37.4% |
14.8% |
|
Rest of the
world |
-2.8% |
7.3% |
|
|
|
|
|
Total |
12.7% |
3.1% |
|
Total
revenue
|
Q1 |
|
2017 |
2016 |
In € millions |
|
|
|
|
Europe |
162 |
135 |
France |
53 |
48 |
Rest of Europe |
109 |
87 |
Latin
America |
140 |
95 |
Rest of
the world |
21 |
19 |
|
|
|
Total |
323 |
249 |
|
|
|
|
|
|
|
Q1 |
|
Change reported |
Change L/L |
In % |
|
|
|
|
Europe |
20.3% |
7.9% |
France |
10.5% |
8.1% |
Rest of Europe |
25.7% |
7.8% |
Latin
America |
47.2% |
12.1% |
Rest of
the world |
6.3% |
9.0% |
|
|
|
Total |
29.6% |
9.6% |
[1] At constant
scope of consolidation and exchange rates (corresponding to organic
growth).
[2] La
Compagnie des Cartes Carburants
[3] The
founders of UTA (the Eckstein and Van Dedem families) and Daimler
hold 34% and 15% of UTA's share capital respectively.
[4] Excluding
the Brazilian loans, the average cost of debt is 1.5%.
CP CA T1 2017_VENG
This
announcement is distributed by Nasdaq Corporate Solutions on behalf
of Nasdaq Corporate Solutions clients.
The issuer of this announcement warrants that they are solely
responsible for the content, accuracy and originality of the
information contained therein.
Source: EDENRED S.A. via Globenewswire
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