Pluxee and Edenred earnings summary

Pluxee FY 24, Edenred Q3 24

Pluxee and Edenred recently announced earnings. While the companies usually trade fairly in line we can see a large divergence as Pluxee announced its FY24 results on the 30th. Edenred hasn’t recovered from its earnings crash on October 24th. Let’s dive into the results.

Quarterly results

Edenred

Edenred reported 11.5% like-for-like revenue growth, with operating revenues growing 10.8%. It is continuing to implement the Beyond 22-25 plan and has confirmed its FY 24 guidance. The growth came from the Benefits & Engagement and Mobility segments, while the Complementary Solutions continued to stagnate. Edenred blames this on the discontinuation of CESU social services in France, the reduction of some Central European public programs and a slowdown in Edenred Pay North America, particularly in its traditional media business. Europe (representing 60% of revenues) trailed LATAM (16.7%) and the rest of the world (16.4%) with 6.7% l-f-l growth.

Edenred continues its strategy to diversify its business and become less exposed to regulated markets. Recent acquisitions contribute to this with >85% of incremental revenue non-regulated and >80% extending beyond food/fuel. Overall these results looked good, especially for a business trading at single digits multiples. The main reason why the stock sold off was a new regulation proposal in Italy calling for the introduction of a 5% cap on merchant fees for meal vouchers in the private sector. I’ll go more into detail on this later. Edenred expects a potential impact of up to €60 million EBITDA in H2 25 and 120 million annualized if implemented. Italy represents a large part of Edenred’s business at 13% of operating revenue.

Pluxee

Pluxee saw strong 10.6% organic revenue growth in Q4 and 18.6% for FY24. As communicated previously, LATAM was going to be a weak point in Q4 due to a high comparison base after a regulatory change in Brazil implemented on May 23rd and the discontinuation of a public benefits contract in Chile.

EBITDA grew by 24.8% organically in FY24 with a strong 183bps margin expansion, reaching the majority of the previously stated margin expansion target for FY26 already. The company raised its guidance for FY25 and 26 on all fronts:

• Low double-digit revenue growth is confirmed from the higher base level after the 18.6% achieved in 2024

• The EBITDA margins target is reached one year early and extended

• The average cash conversion target is raised from 70% to 75%

Let’s go more into the details.

---

Ready for More?

By becoming a paying subscriber, you can read the rest of this article and all of my writing on businesses, valuations and investing. Don't miss out on the opportunity!