France's Pluxee lifts 2025/26 outlook, exceeds earnings expectations (updated)
31/10/2024 08:48
(Added details throughout, CEO quotes in paragraphs 5 and 9)
By Mathias de Rozario
Oct 31 (Reuters) - French voucher and benefits company
Pluxee PLX.PA raised its guidance for its 2025 and 2026 fiscal
years on Thursday after what it described as a solid performance
this year.
The company's shares were 3.6% higher by 0845 GMT
Pluxee now targets an expansion in its recurring EBITDA
margin of 75 basis points (bps) in both its 2025 and 2026
financial years, and said it would reach its three-year target
of a 250 bps organic increase in the margin one year ahead of
plan in 2025.
The former Sodexo EXHO.PA division also expects a
recurring cash conversion, the rate at which it turns revenue
into cashflow, above 75% on average over the 2024 to 2026
period, compared to the above 70% previously announced.
"In 2024, we had to increase investments and strengthen our
structure, so a large part of the operating leverage was
absorbed...to strengthen our fundamentals, whereas in '25 and
'26 we expect a much greater impact," CEO Aurélien Sonet said on
a call with journalists.
For its first year as a standalone company, Pluxee's
recurring earnings before interest, taxes, depreciation and
amortisation (EBITDA) totalled 430 million euros ($466.59
million) compared with the 426 million euros in a
company-provided consensus.
The company's activities in Europe and Latin America
accounted for 44.7% and 38.4%, respectively, of the 1.06 billion
euros of total operating revenue.
Sonet said the number of contracts signed had reached a new
high, totalling 1.6 billion euros in 2024.
"This underlines both the commercial momentum and the
dynamism of our commercial engine," he said.
The CEO said the acquisition of Spain's Cobee would not have
a significant impact on Pluxee's 2025 revenue and expected it to
be accretive from 2026.
Sonet added that an Italian proposal to cap meal voucher
commissions at 5% would not have an impact on Pluxee's
medium-term guidance.
(Reporting by Mathias de Rozario; Editing by Christian
Schmollinger, Kirsten Donovan)
((mathias.derozario@thomsonreuters.com))