Edenred warns it will cut 2026 profit outlook if new Brazil voucher rules go through (updated)
12/11/2025 08:47
Updates share moves, adds detail on new regulation and analyst comments in paragraphs 2-5, Pluxee comments in 10
Nov 12 (Reuters) - French voucher provider Edenred EDEN.PA warned on Wednesday it would cut 2026 profit guidance if the planned regulatory changes to the meal and food voucher system in Brazil were implemented, knocking its shares.
The shares were down around 9% as of 1042 GMT, trading at their lowest levels since January 2017, while peer Pluxee's PLX.PA shares fell 12.6%, on track for their worst day ever.
NEW REGULATION TO INTRODUCE CAPPING FEES
Starting in 90 days, Brazilian merchants such as restaurants, supermarkets, bakeries or cafeterias will see the fee they pay voucher providers capped at 3.6%, according to a decree signed by President Luiz Inacio Lula da Silva.
The fee had been unrestricted under current regulation.
The new regulation will also include a reduction in the deadline for payments to merchants to 15 days from 30 days previously.
A presidential decree is expected to be published on Wednesday by the Brazilian government, Edenred said.
Analysts at Jefferies said they estimate a 2026 core earnings impact of 10–15% for Edenred and about 23% for Pluxee from these measures.
Still, J.P. Morgan analysts said in a note that they considered the measures to be a "clearing event", given the uncertainty around the regulation had weighed on both voucher firms' shares.
EDENRED, PLUXEE CONSIDER LEGAL ACTION
Edenred said in a statement it was surprised by the changes, which it said differed "significantly from the discussions held between the professional association (ABBT) and the government".
"Edenred and the ABBT are working with legal advisers to explore possible legal remedies against the decree, emphasizing that such actions could potentially have a suspensive effect," the group added.
Pluxee also said it was considering taking legal action against the implementation of the measures, independently and in conjunction with ABBT.
(Reporting by Dimitri Rhodes and Leo Marchandon in Gdansk, editing by Anna Pruchnicka and Milla Nissi-Prussak)
((Dimitri.Rhodes@thomsonreuters.com;))