Edenred (EDEN) H1 2024 earnings summary

Executive summary

• H1 2024 revenue reached €1,395 million, up 18.5% as reported, with strong growth across all business lines and geographies.

• EBITDA rose 23.7% to €597 million, with margin improving to 42.8%, and net profit (Group share) increased 16.3% to €235 million year-over-year.

• FFO increased 18.3% to €400 million, with a robust balance sheet and A- S&P rating confirmed.

• Strategic focus on scaling core markets, digitalization, and successful integration of Reward Gateway, Spirii, and RB acquisitions.

• Double-digit growth achieved in benefits & engagement and mobility segments, with robust client wins and expansion into new geographies.

Financial highlights

• Operating revenue grew 16.0% to €1,271 million; other revenue surged 58% year-over-year to €124 million.

• EBITDA margin improved from 41% to 42.8%, a 1.8 pt increase as reported and 2.7 pts like-for-like.

• Net profit group share rose 16.3% to €235 million.

• CapEx in H1 2024 was €97 million, representing 7% of total revenue.

• Net debt at end of June 2024 was €1.88 billion, with strong liquidity and stable leverage.

Outlook and guidance

• Full-year 2024 EBITDA expected between €1,230 million and €1,300 million, up from €1,094 million in 2023.

• Other revenue for 2024 projected at €230–240 million, with a minimum of €210–215 million expected in 2025.

• Operating EBITDA margin and free cash flow conversion expected to improve further in 2024 and remain above 70% in 2025.

• Double-digit growth trajectory expected to continue, with a path to over €5 billion total revenue by 2030.