Edenred and Pluxee drop on reports of regulation change in Brazil

Pluxee

25/04/2025 12:15

Corrects typo in journal name in second bullet to Ootimista

** Shares in meal vouchers provider Edenred EDEN.PA drop 9.8%, paring losses after falling as much as 10.3%, on reports of employee benefits regulation change in Brazil

** The report, published by Brazilian journal Ootimista, says brazil government studies replacing meal vouchers with Pix payments to workers

** "If this change is enacted it would be a significant headwind for Edenred," Morningstar analyst Ben Slupecki says

** Shares in peer Pluxee PLX.PA also drop 7.4%

** "Edenred has more significant operations in Brazil, which would explain the greater drop," Slupecki says

** The analyst adds that it is unclear from the article whether this would also impact mobility or just their meal voucher business

** Latin America, of which Brazil is a major contributor, represented sales of 769 million euros ($872.82 million)for Edenred and 405 million euros for Pluxee in 2024, representing 29.5% and 38.4% of each group's total revenue, respectively

** Shares in Edenred on track for worst day since October 2024, while shares in Pluxee on track for worst day since March 2025

($1 = 0.8811 euros)

 (Reporting by Dimitri Rhodes)

 ((Dimitri.rhodes@thomsonreuters.com))