Edenred beats earnings forecasts as new clients boost growth
23/04/2026 06:01
Confirms 2026 guidance despite regulation headwinds Client acquisitions and upselling drive revenue growth Little to negative growth in vouchers for existing clients By Dimitri Rhodes and Lucie Barbier April 23 (Reuters) - French vouchers and benefit cards provider Edenred EDEN.PA on Thursday reported first-quarter revenue above expectations, helped by new customer wins and increased revenue per client. Edenred posted 3.1% organic revenue grew to 730 million euros ($855 million) in the first quarter of 2026, above the 712 million euros expected by analysts in a consensus provided by the company. "In an uncertain environment, we are ... acquiring new customers and generating additional value per user, particularly through upselling and cross-selling initiatives," CEO Bertrand Dumazy said in a press release. The group confirmed its guidance for 2026, including a drop in earnings before interest, taxes, depreciation and amortization (EBITDA) of between 8% and 12%, finance chief Virginie Duperat-Vergne told journalists in a press call. The decline was mainly driven by a shortfall of 230 million euros due to regulatory changes in Brazil and Italy, two of Edenred's largest markets. In Brazil, the government imposed caps on the fees that merchants pay to voucher providers like Edenred, cutting into a key source of revenue. Peer Pluxee PLX.PA said in January that it expected a 50% revenue drop in Brazil by next year. Benefits providers like Edenred and Pluxee PLX.PA are increasingly relying on emerging markets like Latin America to drive profits. They are coping with slowdowns in their main business regions amid economic uncertainty. Pluxee said in April that clients were being more cautious and companies were freezing hiring in Europe. MORE USERS AND MORE REVENUE PER USER The CFO said that Edenred, which helps companies manage staff expenses and benefits and is known for its "Ticket Restaurant" vouchers, saw little to negative growth in the vouchers it distributes to existing clients. However, she noted a jump in customer acquisitions in the quarter. In November the group said it aims to increase the average annual revenue per user by 52% to 70 euros by 2030, and to grow its annual revenue to more than 5 billion euros by the same year, versus 2.96 billion euros in 2025. "We already have 35% of our meal voucher customers using at least one other Edenred solution," Duperat-Vergne said. ($1 = 0.8536 euros) Share performance of Edenred and peer Pluxee in 2026 https://www.reuters.com/graphics/EDENRED-RESULTS/zgvolykmapd/chart.png (Reporting by Dimitri Rhodes and Lucie Barbier in Gdansk; Editing by Lisa Shumaker and Matt Scuffham) ((Dimitri.Rhodes@thomsonreuters.com))