EDENRED : First-quarter 2021 revenue - Edenred delivers organic
growth across all business lines and all regions
Press releaseApril 22, 2021
First-quarter 2021 revenue
Edenred delivers organic growth
across all business lines and
all regions
Encouraging start to the
year despite tighter lockdown
measures in many countries
- Operating revenue
of €363 million, up 3.6% excluding the currency effect and changes
in the scope of consolidation (like-for-like), and down 5.1% as
reported
- Total revenue of
€373 million (+3.7% like-for-like)
Back to organic growth
across all business lines and all regions,
driven by innovation, agility and strong
sales momentum
- Like-for-like
operating revenue up 4.2% in Europe, 3.4% in Latin America and 0.8%
in the Rest of the World
- Success of the
digital Employee Benefits offering, which is particularly well
adapted to the health situation and remote working (more than 100
partnerships with meal delivery platforms in 16 countries,
including Uber Eats and Deliveroo since 2018)
- Continuation of the
strong sales momentum and the development of the “Beyond Fuel”
offer within Fleet & Mobility Solutions
- Restart and
implementation of earmarked funds programs aimed at supporting
sectors and individuals hard hit by the crisis
- Ability to forge
partnerships in the North American corporate payments market, such
as with Citi and Sage in 2021
Full-year growth prospects
confirmed despite the uncertainties related to the ongoing health
crisis
- A still challenging
health situation currently observed in several major countries such
as France and Brazil
- A better
environment expected for the second half of the year, but the
timing of the exit from the health crisis remains uncertain
- Edenred
nonetheless confirms its ability to generate
like-for-like EBITDA growth in 2021 of
minimum 6%
*** Bertrand Dumazy, Chairman and Chief
Executive Officer of Edenred, said: “Edenred reported an
encouraging start to the year, continuing the rebound that began
last summer. Against a backdrop of heightened health restrictions
in many countries in which we operate, the shift back to organic
growth across all of our business lines and regions is a real
source of satisfaction. We continue to demonstrate agility, dynamic
sales performance and innovation in deploying solutions, but also
in forging partnerships in response to the specific needs arising
from the Covid crisis as well as more structural trends such as the
development of remote working, digitalization, the emergence of
more responsible behaviors and digitalized payment. Although the
health situation remains uncertain, we are confident in our ability
to increase full-year EBITDA by a minimum of 6% on a like-for-like
basis.” |
FIRST-QUARTER 2021 TOTAL
REVENUE
First-quarter 2021 key financial metrics:
(in € millions) |
First-quarter 2021 |
First-quarter 2020 |
% change (like-for-like) |
% change (reported) |
Operating
revenue |
363 |
383 |
+3.6% |
-5.1% |
Other
revenue |
10 |
12 |
+6.0% |
-12.8% |
Total revenue |
373 |
395 |
+3.7% |
-5.3% |
- Total revenue: €373
million
Total revenue for first-quarter 2021 was
€373 million, up 3.7% like-for-like. On a reported basis, an
unfavorable currency effect (-8.8%) and a slightly negative
scope effect (-0.2%) resulted in a 5.3% decrease.
- Operating revenue: €363
million
Edenred entered the crisis in excellent
health, demonstrating resilience at its peak.
The Group got back to growth as early as
the third quarter of 2020.
Despite the widespread heightening of
lockdown measures, the Group’s strong momentum was confirmed in
first-quarter 2021, with operating revenue growing
3.6% like-for-like
(i.e., excluding the currency
effect and changes in the scope of consolidation).
For the three months ended March 31,
operating revenue came to €363 million, up 3.6% like-for-like
and down 5.1% on a reported basis, taking into account a negative
currency effect of 8.5%.
This performance reflects a shift back to
organic growth in the operating revenue of all businesses and in
each of the key geographies despite an environment that is still
weakened by the health situation and the heightening of lockdown
measures in many regions.
- Operating revenue by
business line
(in € millions) |
First-quarter 2021 |
First-quarter 2020 |
% change (like-for-like) |
% change (reported) |
Employee Benefits |
223 |
238 |
+0.2% |
-6.4% |
Fleet &
Mobility Solutions |
90 |
99 |
+5.3% |
-8.9% |
Complementary Solutions |
50 |
46 |
+17.8% |
+10.2% |
Total |
363 |
383 |
+3.6% |
-5.1% |
Operating revenue for the Employee
Benefits business line was €223 million, representing
a like-for-like rise of 0.2% (-6.4% as reported) and 61% of total
consolidated operating revenue. The digitalization of the offer
offset the impact of lockdown measures in place in several major
countries such as France, the United Kingdom and Brazil. Edenred
recorded a good performance for its employee engagement platforms.
Having been a pioneer in API-based payment and, in 2018, the first
to forge partnerships with major meal delivery players such as
Deliveroo and Uber Eats, the Group continued to extend access to
these global platforms country by country, all while integrating
new local players such as DejBox in France and Tazz in Romania.
Available through more than 100 partners in 16 countries, this
innovative offer promotes the adoption of Ticket Restaurant, a
truly “virtual canteen”, by new clients such as Roche in Spain and
Bayer in Italy in the first quarter, by replacing or supplementing
physical canteens at a time when remote working is taking hold.
In the Fleet & Mobility
Solutions business line, which accounts for 25% of the
Group’s business, like-for-like operating revenue increased by 5.3%
in the first quarter (-8.9% as reported) to €90 million. This
rebound notably reflects the success of the “Beyond Fuel” strategy
(maintenance, tolls, VAT recovery services) and the Group’s strong
sales momentum, particularly with managers of smaller fleets who
are looking for more efficient ways of managing their vehicle-based
expenses. Higher fuel prices also contributed to this business
line’s growth, particularly in Latin America.
The Complementary Solutions
business line, which represents 14% of the Group’s operating
revenue, includes Corporate Payment Services, Incentive &
Rewards Solutions and Public Social Programs. It generated
operating revenue of €50 million in the first quarter, up
17.8% like-for-like (+10.2% as reported). This double-digit growth
notably reflects the Group’s ability to rapidly and efficiently
implement earmarked funds programs aimed at supporting vulnerable
individuals and sectors, such as in Romania, Brazil and the United
Kingdom.
Edenred’s Corporate Payment Services business
showed the first signs of improvement, confirming the growing
interest among North American companies in secure, innovative
digital payment solutions. After having extended its partnership
with Sage, CSI, Edenred’s American subsidiary specialized in
corporate payment solutions, signed an agreement with the
Commercial Cards business of the international bank Citi to offer
American corporations a joint solution combining CSI’s expertise in
the digitalization of accounts payable processes and Citi’s
financial resources. This collaboration enhances CSI’s value
proposition for key accounts, for whom the banking relationship is
particularly valued.
- Operating revenue by
region
(in € millions) |
First-quarter 2021 |
First-quarter 2020 |
% change (like-for-like) |
% change (reported) |
Europe |
237 |
228 |
+4.2% |
+4.2% |
Latin
America |
97 |
121 |
+3.4% |
-20.1% |
Rest of the
World |
29 |
34 |
+0.8% |
-13.4% |
Total |
363 |
383 |
+3.6% |
-5.1% |
In Europe, operating revenue
came to €237 million in the first quarter, up 4.2% on a
like-for-like and reported basis, a comparable level to that of the
fourth quarter of 2020, despite the implementation of tighter
restrictions for longer periods in various countries in the region.
Europe represented 65% of total consolidated operating revenue in
first-quarter 2021.
In France, operating revenue
came in at €69 million for the first quarter, down 1.4%
like-for-like and as reported. The extension of the curfew,
followed by the implementation of local lockdowns, weighed on
user’s spending, notably for meals, despite the shift to new
consumption patterns such as ordering and paying through meal
delivery platforms. In spite of the health restrictions, the Group
delivered a solid sales performance with the signing of new clients
in Employee Benefits and in Fleet & Mobility Solutions.
Operating revenue in Europe excluding
France was up 6.6% like-for-like and 6.7% as reported to
€168 million in the first three months of 2021 despite various
health restrictions, which continued to impede mobility, business
activity and the use of Group solutions. Against this backdrop,
Edenred continued to develop its digital Employee Benefits offer,
which is particularly well adapted to remote working, and Fleet
& Mobility Solutions, including with SMEs. The Group also
continued to implement earmarked funds programs, such as in the
United Kingdom on behalf of the Department for Education, or in
Romania, working together with the Fund for European Aid to the
Most Deprived (FEAD).
Operating revenue amounted to €97 million in
Latin America, up 3.4% like-for-like (-20.1% as
reported). The region represented 27% of total consolidated
operating revenue in first-quarter 2021.
In Brazil, operating revenue
returned to growth during the first three months of the year,
rising 5.5% like-for-like while the country’s health situation
remained particularly challenging. The Group saw a gradual
improvement in the Employee Benefits business over the quarter,
despite the number of restaurants closed to the public, thanks to
app-to-app payment solutions for meal delivery platforms launched
in March 2020. The Fleet & Mobility Solutions business line
continued to benefit from the success of the “Beyond Fuel” offer,
which notably includes maintenance and toll management
solutions.
Amid a difficult health environment in several
countries such as Chile, for example, Hispanic Latin
America continued to rebound, reporting a 1.6%
like-for-like decrease in operating revenue in first-quarter 2021,
an improvement compared with the 4.2% fall in the previous quarter.
This performance was achieved particularly thanks to a higher level
of business in Fleet & Mobility Solutions.
Operating revenue in the Rest of the
World rose slightly by 0.8% like-for-like (-13.4% as
reported) to €29 million, representing 8% of the Group’s operating
revenue in first-quarter 2021. This performance reflects the
resilience of Edenred’s operations in this region’s various
countries and the early signs of recovery in North America.
- Other revenue: €10
million
Other revenue for the first three months of the
year totaled €10 million, up 6.0% like-for-like despite the overall
drop in short-term interest rates compared with the first quarter
of 2020. This change notably reflects a higher float1 than in the
same period of 2020. On a reported basis, other revenue decreased
by 12.8% due to negative currency effects.
2021 OUTLOOK
The first quarter’s growth reflects Edenred’s
capacity to tap an intact reserve of growth potential, notably
characterized by underpenetrated markets and promising trends
accelerated by the crisis. Against the backdrop of a still
challenging health situation where many countries had heightened
their lockdown measures, Edenred demonstrated its agility and
leveraged its digital platform to win new clients, launch new
offers, forge new partnerships and implement new earmarked funds
programs.
However, although the start of the year was
encouraging, the ongoing health crisis prompts the Group to remain
cautious. The situation is currently still challenging in several
major countries such as France and Brazil.
Finally, even if the Group expects an improved
environment in the second half of the year, uncertainties related
to the development of the pandemic persist as regards the timing of
the exit from the health crisis.
Edenred nonetheless confirms its ability
to generate like-for-like EBITDA
growth in 2021 of
minimum 6%.
SIGNIFICANT EVENTS IN THE FIRST
QUARTER
- Expansion of the
partnership between Sage and Corporate Spending
Innovations (CSI), a subsidiary
of the Edenred Group, to deliver
a new Vendor Payments offering
in the United States
In March 2021, Sage and Edenred’s subsidiary
Corporate Spending Innovations, a leader in electronic B2B payment
solutions, announced an expanded relationship. The companies are
working together to deliver new vendor payments capabilities
natively within the Sage Intacct cloud financial management system
– providing a seamless experience from bill to reconciliation for
joint customers in the United States.
UPCOMING EVENTS
May 11, 2021: General MeetingJuly 27, 2021:
First-half 2021 resultsOctober 21, 2021: Third-quarter 2021
revenue
▬▬
Edenred is a leading digital
platform for services and payments and the everyday companion for
people at work, connecting over 50 million users and 2 million
partner merchants in 46 countries via more than 850,000 corporate
clients.
Edenred offers specific-purpose payment
solutions for food (such as meal benefits), mobility (such as
multi-energy, maintenance, toll, parking and commuter solutions),
incentives (such as gift cards, employee engagement platforms) and
corporate payments (such as virtual cards). These solutions enhance
user’s well-being and purchasing power, improve companies’
attractiveness and efficiency, and vitalize the employment market
and the local economy. They also foster access to healthier food,
more environmentally friendly products and softer mobility.
Edenred’s 10,000 employees are committed to
making the world of work a connected ecosystem that is safer, more
efficient and more user-friendly every day.
In 2020, thanks to its global technology assets,
the Group managed close to €30 billion in business volume,
primarily carried out via mobile applications, online platforms and
cards.
Edenred is listed on the Euronext Paris stock
exchange and included in the following indices: CAC Next 20,
FTSE4Good and MSCI Europe.
The logos and other trademarks mentioned and
featured in this press release are registered trademarks of
Edenred S.A., its subsidiaries or third parties. They may not
be used for commercial purposes without prior written consent from
their owners.
▬▬CONTACTS
Communications Department Emmanuelle
Châtelain +33 (0)1 86 67 24 36
emmanuelle.chatelain@edenred.com Media
Relations Matthieu Santalucia+33 (0)1 86 67 22
63matthieu.santalucia@edenred.com |
Investor
Relations Cédric Appert+33 (0)1 86 67 24
99cedric.appert@edenred.com Loïc Da Silva+33 (0)1 86
67 20 67loic.dasilva@edenred.com
|
APPENDICES
Operating revenue
|
Q1 |
In € millions
|
2021 |
2020 |
|
|
|
Europe |
237 |
228 |
France |
69 |
70 |
Rest of Europe |
168 |
158 |
Latin America |
97 |
121 |
Rest of the world |
29 |
34 |
|
|
|
Total |
363 |
383 |
|
|
|
|
|
|
|
Q1 |
In %
|
Change reported |
Change L/L |
|
|
|
Europe |
+4.2% |
+4.2% |
France |
-1.4% |
-1.4% |
Rest of Europe |
+6.7% |
+6.6% |
Latin America |
-20.1% |
+3.4% |
Rest of the world |
-13.4% |
+0.8% |
|
|
|
Total |
-5.1% |
+3.6% |
Other revenue
|
Q1 |
In € millions
|
2021 |
2020 |
|
|
|
Europe |
3 |
4 |
France |
1 |
2 |
Rest of Europe |
2 |
2 |
Latin America |
6 |
7 |
Rest of the world |
1 |
1 |
|
|
|
Total |
10 |
12 |
|
|
|
|
|
|
|
Q1 |
In %
|
Change reported |
Change L/L |
|
|
|
Europe |
-18.2% |
-17.6% |
France |
-10.7% |
-10.7% |
Rest of Europe |
-22.9% |
-22.0% |
Latin America |
-14.9% |
+9.5% |
Rest of the world |
+19.0% |
+70.5% |
|
|
|
Total |
-12.8% |
+6.0% |
Total revenue
|
Q1 |
In € millions
|
2021 |
2020 |
|
|
|
Europe |
240 |
232 |
France |
70 |
72 |
Rest of Europe |
170 |
160 |
Latin America |
103 |
128 |
Rest of the world |
30 |
35 |
|
|
|
Total |
373 |
395 |
|
|
|
|
|
|
|
Q1 |
In %
|
Change reported |
Change L/L |
|
|
|
Europe |
+3.8% |
+3.8% |
France |
-1.6% |
-1.6% |
Rest of Europe |
+6.2% |
+6.2% |
Latin America |
-19.8% |
+3.7% |
Rest of the world |
-12.3% |
+3.1% |
|
|
|
Total |
-5.3% |
+3.7% |
1 The float corresponds to a portion of the operating working
capital from the preloading of funds by corporate clients.
- 2021 04 22 - Edenred Q1 2021 Revenue - PR
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