Edenred beats earnings forecasts as new clients boost growth (updated)
23/04/2026 09:27
Confirms 2026 guidance despite regulation headwinds Client acquisitions and upselling drive revenue growth Little to negative growth in vouchers for existing clients Adds share move and broker quote paragraph 2. Updates graph. 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's organic revenue grew 3.1% 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. Shares in the company were up 3.9% at 0749 GMT. Analysts at at J.P. Morgan expected "modest relief" for the stock, which has come under pressure from recent regulation changes. "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%. 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, finance chief Virginie Duperat-Vergne told journalists in a press call. 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 as they cope 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. Duperat-Vergne 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. ($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))