EDENRED : First-quarter 2022 income

First-quarter 2022 income

Glorious begin to the yr with continued sturdy momentum in gross sales and digital innovation

FIRST-QUARTER 2022 TOTAL REVENUE

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Complete income for the primary quarter of 2022 got here to €439 million, up 17.6% yr on yr as reported, together with a good forex impact (+2.4%) and a barely adverse scope impact (-0.5%). On a like-for-like foundation, complete income was up 15.7%.

Working income got here to €426 million within the first three months of 2022, up 17.3% as reported, together with a good forex impact (+2.5%) and a adverse scope impact (-0.5%). On a like-for-like foundation, working income rose by 15.3% yr on yr.

This superb efficiency follows on from the constructive traits already noticed in 2021. Working income progress was notably pushed by continued sturdy gross sales momentum, each within the very buoyant SME phase and in key accounts, with contract wins with iconic purchasers corresponding to Google in France and FedEx in Brazil and Mexico.

In the course of the first quarter, the Group additionally continued to develop new companies as a part of its Past Meals and Past Gasoline technique. The partnership in Europe with ChargePoint, a number one world electrical car charging community supplier, is only one instance. This partnership offers Edenred purchasers in Europe with entry to greater than 240,000 public electrical cost factors throughout 32 international locations, enabling Edenred to help fleet managers of their transition to electrical mobility.

The Group’s efficiency additionally benefited from a macroeconomic atmosphere that additional strengthened the enchantment of Edenred’s options. With governments and corporations seeking to shield workers’ buying energy, introducing new advantages or rising the face worth of current advantages have emerged as efficient responses. In Fleet & Mobility Options, the rise in gasoline costs on the pump has inspired fleet managers to train even tighter management over prices.

Working income for the Worker Advantages enterprise line, which accounts for 60% of the Group’s complete working income, was €256 million in first-quarter 2022, a 15.1% year-on-year enhance as reported (+14.2% like-for-like).

This progress was as soon as once more pushed by sturdy gross sales momentum, mirrored within the ever-increasing penetration of the SME phase, in addition to the success of the Group’s options with key accounts. With the world of labor present process a radical transformation, Edenred continued to roll out its Past Meals providing, designed notably to help purchasers seeking to improve their enchantment and enhance employees engagement. The multi-product providing of worker advantages in Brazil (Ticket Superflex), for instance, met with main business success, as did platforms to equip workers for distant working in France and Mexico. Lastly, the first-quarter efficiency additionally benefited from a good foundation of comparability because of the impression of Covid-related restrictions, notably in Europe, within the first quarter of 2021.

Within the Fleet & Mobility Options enterprise line, which accounts for 27% of the Group’s complete working income, working income for first-quarter 2022 amounted to €117 million, up 29.6% yr on yr as reported (+24.3% like-for-like).

This sturdy progress displays the continued rollout of the Past Gasoline technique, notably by means of the upkeep and toll providing, which is proving extremely profitable in Europe and Latin America. The February acquisition of Greenpass, an issuer of e-toll options in Brazil, is absolutely according to this technique. The enterprise additionally loved sturdy gross sales momentum as soon as once more, pushed by the relevance of its digital and multi-product providing for fleet managers. As well as, excessive oil costs within the first three months of the yr contributed to larger enterprise volumes in contrast with the primary quarter of 2021.

The Complementary Options enterprise line, which incorporates Company Fee Providers, Incentive & Rewards and Public Social Packages, generated income of €53 million in first-quarter 2022, representing 13% of the Group complete. This determine was up 5.0% as reported (+3.9% like-for-like) in contrast with the primary quarter of 2021.

Company Fee Providers in North America, operated by means of CSI, recorded a stable efficiency, pushed by new contract wins and the regular enchancment in volumes generated by purchasers within the media and hospitality segments.

The expansion posted on this enterprise line was impacted by a excessive foundation of comparability on account of the implementation in first-quarter 2021 of a number of particular earmarked funds packages for individuals onerous hit by the well being disaster, notably in Romania and the UK.

In Europe, working income amounted to €270 million within the first quarter, a year-on-year enhance of 13.8% as reported (+13.4% like-for-like). Europe accounted for 63% of complete consolidated working income in first-quarter 2022.

In France, working income got here in at €76 million for the primary quarter, up 10.3% as reported and like-for-like. This efficiency notably displays the business success of Ticket Restaurant^®, the market’s primary title and digital chief, providing a easy and versatile answer for purchasers and a continuously enhancing expertise based mostly on modern new options for customers. Options rolled out as a part of the Past Meals technique (corresponding to Ticket Mobilité^® and the distant working platform) and the Fleet & Mobility Options providing additionally contributed to sharp progress within the first quarter.

Working income in Europe excluding France totaled €194 million in first-quarter 2022, a rise of 15.3% as reported (+14.8% like-for-like) versus the prior-year interval. Worker Advantages recorded a stable efficiency, pushed by sturdy progress in Ticket Restaurant^®. In Fleet & Mobility Options, continued rollout of the Past Gasoline technique additionally contributed to the numerous progress recorded within the first quarter.

Working income in Latin America got here to €123 million for the primary quarter, an increase of 26.5% as reported (+16.5% like-for-like) in contrast with the identical interval in 2021.

In Brazil, working income rose by 29.1% as reported (+16.5% like-for-like) in first-quarter 2022 versus first-quarter 2021. This important enhance displays sturdy momentum in Fleet & Mobility Options, pushed notably by the continuing deployment of upkeep and toll administration options, together with the rising contribution of the partnership with Itaú Unibanco to gross sales efficiency in Worker Advantages.

In Hispanic Latin America, working income was up 21.0% as reported (+16.6% like-for-like) in first-quarter 2022 versus the identical interval in 2021. Worker Advantages enterprise within the area is recovering because the well being disaster subsides. In Fleet & Mobility Options, Edenred continued to step by step roll out its Past Gasoline providing (tolls and upkeep).

Within the Remainder of the World, working income got here to €33 million for the primary quarter, up 14.3% as reported and up 26.0% like-for-like. This efficiency was notably spurred by the success of paperless and plasticless digital options in Taiwan. In North America, CSI’s Company Fee Providers maintained the nice momentum seen in late 2021, fueled notably by the distribution partnerships entered into with a number of banks, together with the Industrial Playing cards division of worldwide financial institution Citi one yr in the past.

Different income for the primary quarter of 2022 totaled €13 million, up 28.9% as reported (+29.7% like-for-like). This rise displays the rise in float² ensuing from the excessive stage of enterprise within the first quarter, in addition to increased rates of interest in European international locations outdoors the euro zone and in Latin America.

OUTLOOK

Following on from historic leads to 2021, the stable efficiency recorded within the first quarter of 2022 displays Edenred’s skill to leverage its distinctive digital platform to proceed alongside a sustainable and worthwhile progress trajectory. The Group’s business momentum continues to be pushed by the addition of latest digital, multi-product options tailored to the wants and expectations of purchasers in its three enterprise traces. Constructing on these modern and related options, Edenred will proceed to penetrate its markets and thereby help altering behaviors and structural traits, corresponding to distant working as a everlasting function within the office, inexperienced commuting, the consumption of eco-friendly merchandise and the transition of fleets to electrical or plug-in hybrid autos.

Edenred additionally expects to proceed benefiting from a good macroeconomic atmosphere, and particularly from the inflationary context, which is encouraging public authorities and corporations to extend the face worth of Worker Advantages options and prompting fleet managers to prioritize expense administration options.

Edenred is subsequently reaffirming its confidence for 2022, and intends to take care of a sustained tempo of progress in all areas the place the Group operates and in every enterprise line.

Consequently, for 2022, the Group is confirming the annual targets set in its Subsequent Frontier strategic plan:

• like-for-like working income progress of greater than 8%;

• like-for-like EBITDA progress of greater than 10%;

• free money circulate/EBITDA conversion charge of greater than 65%³.

SIGNIFICANT EVENT IN THE FIRST QUARTER

On February 22, Edenred introduced that it had acquired a 51% controlling curiosity in Greenpass, an issuer of digital toll options in Brazil. The deal strengthens Edenred’s place on this enterprise in addition to its know-how and gross sales capabilities in a gorgeous market providing important cross-selling potential with its consumer base. It’s absolutely according to the Group’s Past Gasoline technique to develop new non-fuel fleet and mobility companies, enhancing its worth proposition for fleet managers and increasing its addressable market.

SUBSEQUENT EVENT

On April 5, Edenred introduced a partnership with ChargePoint, a number one electrical car charging community supplier in Europe and within the USA. This partnership allows prospects of UTA Edenred, a number one mobility service supplier in Europe, to entry over 240,000 public electrical cost factors throughout 32 European international locations. Edenred helps fleet managers within the transition in direction of electrical car utilization, notably by means of the introduction of an all-in-one, absolutely built-in answer that mixes an electrical car charging answer with UTA Edenred’s confirmed power, toll and upkeep companies.

UPCOMING EVENTS

Could 11, 2022: Common Assembly
July 26, 2022: First-half 2022 outcomes
October 21, 2022: Third-quarter 2022 income
October 25, 2022: Capital Markets Day in London (initially scheduled for October 26, 2022)

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About Edenred

Edenred the on a regular basis companion for individuals at work, is a number one digital platform for companies and funds which connects over 50 million customers and a couple of million associate retailers in 46 international locations by way of roughly 900,000 company purchasers.

Edenred presents specific-purpose cost options for meals (corresponding to meal advantages), incentives (corresponding to reward playing cards, worker engagement platforms), mobility (corresponding to multi-energy, upkeep, toll, parking and commuter options) and company funds (corresponding to digital playing cards).

True to the Group’s goal, “Enrich connections. For good.”, these options improve customers’ well-being and buying energy. They enhance firms’ attractiveness and effectivity, and vitalize the employment market and the native economic system. Additionally they foster entry to more healthy meals, extra environmentally pleasant merchandise and softer mobility.

Edenred’s 10,000 workers are dedicated to creating the world of labor a linked ecosystem that’s safer, extra environment friendly and extra accountable day-after-day.

In 2021, because of its world know-how belongings, the Group managed near €30 billion in enterprise quantity, primarily carried out by way of cellular functions, on-line platforms and playing cards.

Edenred is listed on the Euronext Paris inventory alternate and included within the following indices: CAC Subsequent 20, CAC Giant 60, Euronext 100, FTSE4Good and MSCI Europe.

The logos and different logos talked about and featured on this press launch are registered logos of Edenred S.E., its subsidiaries or third events. They is probably not used for business functions with out prior written consent from their house owners.

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CONTACTS

APPENDICES

Working income

Different income

Complete income

¹ Based mostly on fixed laws and strategies.
² The float corresponds to a portion of the working working capital from the preloading of funds by company purchasers.
³ Based mostly on fixed laws and strategies.

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