EDENRED : First-quarter 2022 income

EDENRED

First-quarter 2022 income

Wonderful begin to the 12 months with continued sturdy momentum in gross sales and digital innovation

Edenred recorded sustained income progress within the first quarter, testifying to the relevance of its digital innovation technique and its business success:

  • Working income up 17.3% as reported (+15.3% like-for-like) versus first-quarter 2021, totaling €426 million

  • Double-digit like-for-like income progress in all areas and in each predominant enterprise traces

  • Pushed by sturdy enterprise quantity and better rates of interest in some areas, different income elevated by practically 30%, from €10 million to €13 million

  • Whole income of €439 million, up 17.6% as reported (+15.7% like-for-like)

Edenred leveraged its distinctive digital platform following the transformation of its enterprise mannequin:

  • A worth proposition broadened by the extension of its Past Meals and Past Gasoline portfolio of options

  • A acknowledged person expertise supported by technological management and continued substantial funding

  • Additional sturdy gross sales momentum, each with key accounts and within the SME phase

  • Acknowledged ESG management as sustainable growth turns into embedded within the Group’s DNA

  • An inflationary atmosphere additional enhancing the attraction of the Group’s options as instruments for growing workers’ buying energy and bettering the effectivity of fleet administration

Affirmation for 2022 of the annual targets set within the Group’s Subsequent Frontier strategic plan (2019-2022):

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

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

  • Free money circulate/EBITDA conversion fee of greater than 65%1

***

Bertrand Dumazy, Chairman and Chief Government Officer of Edenred, stated: “After our historic ends in 2021, Edenred has recorded a superb first quarter because of the exemplary dedication proven by Edenred’s groups once more firstly of this 12 months. Edenred is thus confirming its sustainable and worthwhile progress trajectory. All areas delivered double-digit progress, pushed by a outstanding efficiency from our Worker Advantages and Fleet & Mobility Options.
Because of its distinctive digital platform, Edenred is asserting itself quarter after quarter because the innovation chief in its markets. Our worth proposition is consistently being broadened with new options in keeping with our purchasers’ expectations, in addition to new options that enhance and streamline the person expertise.
We’re subsequently assured in our skill to keep up a sustained tempo of progress for the remainder of the 12 months, pushed by favorable post-Covid tendencies and a macroeconomic atmosphere that strengthens the attraction of our options.”

FIRST-QUARTER 2022 TOTAL REVENUE

(in € tens of millions)

First-quarter 2022

First-quarter 2021

% change (reported)

% change
(like-for-like)

Working income

426

363

+17.3%

+15.3%

Different income

13

10

+28.9%

+29.7%

Whole income

439

373

+17.6%

+15.7%

Whole income for the primary quarter of 2022 got here to €439 million, up 17.6% 12 months on 12 months as reported, together with a good forex impact (+2.4%) and a barely unfavourable 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 unfavourable scope impact (-0.5%). On a like-for-like foundation, working income rose by 15.3% 12 months on 12 months.

This excellent efficiency follows on from the constructive tendencies 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 similar 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 automobile charging community supplier, is only one instance. This partnership gives 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 attraction of Edenred’s options. With governments and corporations seeking to shield workers’ buying energy, introducing new advantages or growing 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.

(in € tens of millions)

First-quarter 2022

First-quarter 2021

% change (reported)

% change
(like-for-like)

Worker Advantages

256

223

+15.1%

+14.2%

Fleet & Mobility Options

117

90

+29.6%

+24.3%

Complementary Options

53

50

+5.0%

+3.9%

Whole

426

363

+17.3%

+15.3%

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 attraction and enhance workers 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 as a result of affect 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% 12 months on 12 months as reported (+24.3% like-for-like).

This sturdy progress displays the continued rollout of the Past Gasoline technique, notably by way 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 in keeping with 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 12 months contributed to better enterprise volumes in contrast with the primary quarter of 2021.

The Complementary Options enterprise line, which incorporates Company Fee Companies, Incentive & Rewards and Public Social Applications, 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 Companies in North America, operated by way 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 because of the implementation in first-quarter 2021 of a number of particular earmarked funds applications for individuals arduous hit by the well being disaster, notably in Romania and the UK.

(in € tens of millions)

First-quarter 2022

First-quarter 2021

% change (reported)

% change
(like-for-like)

Europe

270

237

+13.8%

+13.4%

Latin America

123

97

+26.5%

+16.5%

Remainder of the World

33

29

+14.3%

+26.0%

Whole

426

363

+17.3%

+15.3%

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 resolution for purchasers and a consistently bettering expertise primarily based on revolutionary new options for customers. Options rolled out as a part of the Past Meals technique (similar 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 progressively 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 Companies maintained the great momentum seen in late 2021, fueled notably by the distribution partnerships entered into with a number of banks, together with the Business Playing cards division of worldwide financial institution Citi one 12 months 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 ends in 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 revolutionary and related options, Edenred will proceed to penetrate its markets and thereby help altering behaviors and structural tendencies, similar to distant working as a everlasting characteristic within the office, inexperienced commuting, the consumption of eco-friendly merchandise and the transition of fleets to electrical or plug-in hybrid automobiles.

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 keep up 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 fee 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 expertise and gross sales capabilities in a gorgeous market providing important cross-selling potential with its consumer base. It’s absolutely in keeping with 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 automobile 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 automobile utilization, notably by way of the introduction of an all-in-one, absolutely built-in resolution that mixes an electrical automobile charging resolution with UTA Edenred’s confirmed power, toll and upkeep companies.

UPCOMING EVENTS

Might 11, 2022: Basic 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 accomplice retailers in 46 international locations by way of roughly 900,000 company purchasers.

Edenred affords specific-purpose fee options for meals (similar to meal advantages), incentives (similar to present playing cards, worker engagement platforms), mobility (similar to multi-energy, upkeep, toll, parking and commuter options) and company funds (similar to digital playing cards).

True to the Group’s function, “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. In addition 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 related ecosystem that’s safer, extra environment friendly and extra accountable day-after-day.

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

Edenred is listed on the Euronext Paris inventory trade 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 homeowners.

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CONTACTS

APPENDICES

Working income

Q1

2022

2021

In € tens of millions

Europe

270

237

France

76

69

Remainder of Europe

194

168

Latin America

123

97

Remainder of the world

33

29

Whole

426

363

Q1

Change
reported

Change L/L

In %

Europe

+13.8%

+13.4%

France

+10.3%

+10.3%

Remainder of Europe

+15.3%

+14.8%

Latin America

+26.5%

+16.5%

Remainder of the world

+14.3%

+26.0%

Whole

+17.3%

+15.3%

Different income

Q1

In € tens of millions

2022

2021

Europe

5

3

France

2

1

Remainder of Europe

3

2

Latin America

7

6

Remainder of the world

1

1

Whole

13

10

Q1

Change
reported

Change L/L

In %

Europe

+40.5%

+39.1%

France

+5.6%

+5.6%

Remainder of Europe

+66.0%

+63.5%

Latin America

+33.5%

+22.8%

Remainder of the world

-18.9%

+35.3%

Whole

+28.9%

+29.7%

Q1

In € tens of millions

2022

2021

Europe

275

240

France

78

70

Remainder of Europe

197

170

Latin America

130

103

Remainder of the world

34

30

Whole

439

373

Q1

Change
reported

Change L/L

In %

Europe

+14.2%

+13.8%

France

+10.2%

+10.2%

Remainder of Europe

+15.9%

+15.3%

Latin America

+26.9%

+16.8%

Remainder of the world

+12.9%

+26.5%

Whole

+17.6%

+15.7%

Whole income

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

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