Edenred reports solid results for first-half 2018:
· Total income up 10.1% like-for-like and 2.3% as reported to €665 million
· Operating EBIT margin1 up 1.8 points to 29.7%
· EBIT2 up 14.0% like-for-like and 4.3% as reported to €215 million
· Increase in net profit, Group share to €124 million
Like-for-like3, Edenred's performance in first-half 2018 significantly exceeded its annual growth targets:
· Operating revenue: up 11.6% (annual target: above 7%)
· Operating EBIT4: up 20.3% (annual target: above 9%)
· Funds from operations (FFO)5: up 17.5% (annual target: above 10%)
Confident about its outlook for the second half of the year, Edenred is expecting EBIT of between €440 million and €470 million6 for full-year 2018, compared with €429 million in 2017.
Bertrand Dumazy, Chairman and Chief Executive Officer of Edenred, said: “Thanks in particular to the acceleration in our growth in the second quarter, Edenred recorded double-digit organic growth for the first half of the year as a whole in both Europe and Latin America and in both Employee Benefits and Fleet & Mobility Solutions. This strong increase in our revenues led to a further improvement in our EBIT margin, confirming our capacity to capitalize on our strong operating leverage.
We are now leveraging our global, leading-edge technology platform, featuring the most advanced digital means of payment. This unique omnichannel platform enables us to roll out innovative payment solutions, forge partnerships with tech leaders and offer high-value-added services, all increasingly quickly and efficiently, thereby improving both the user experience and the quality of service provided to our corporate clients and partner merchants.”
Please find the entire press release in attachment.
1Ratio of operating EBIT to operating revenue.
2Operating profit before other income and expenses.
3Like-for-like data temporarily excludes Venezuela, due to the country’s high level of inflation.
4EBIT adjusted for other operating income.
5Before other income and expenses.
6Calculated based on an assumption of an average Brazilian real/euro exchange rate for the second half of the year equal to the actual rate as of June 30, 2018.