Voucher firm Pluxee lags revenue estimates as Brazil regulation hit looms (updated)
16/04/2026 06:44
Recasts with earnings beat and share move in paragraphs 1, 2 and 5, adds CEO comments and details in paragraphs 3-4 and 8-10. Adds graphic illustrating Pluxee share move, STOXX 600 and oil prices in 2026. Latin America still key profit driver as European markets slow CEO Sonet cites client caution and hiring freezes in Europe for stalled H1 sales Brazil fee caps to impact revenue in H2, Sonet says By Dimitri Rhodes April 16 (Reuters) - French voucher and benefits company Pluxee PLX.PA reported 12.9% organic growth in its recurring half-year core profit on Thursday, topping market expectations, as strict cost discipline and efficiency measures shielded margins from soft European sales. Pluxee's shares rose 2% by 0842 GMT, with analysts from J.P. Morgan pointing to a "strong margin delivery" at 37%. Analysts polled by the company had expected a core profit margin of 35.9% on average. Private sector growth in the euro zone nearly stalled in March after the U.S.-Israeli war with Iran caused the closure of a key transport corridor and a sharp rise in fuel prices. Major economies like France have started to see business confidence tumble. "We're starting to see ... more caution in (our European clients') investment decisions, and some hiring decisions may also be put on hold for a period of time," CEO Aurélien Sonet told journalists on a wire call. Recurring earnings before interest, taxes, depreciation and amortization (EBITDA) were 242 million euros ($285 million) in the first half of the financial year, 5 million above analysts' consensus. Benefits providers like Pluxee and Edenred EDEN.PA are increasingly relying on tertiary geographies like Latin America to drive profits, as they cope with slowdowns in their main business regions. However, new free caps in Brazil will soon weigh on results in this region too. BRAZIL RULE CHANGE TO DENT REVENUE IN H2 Pluxee is adapting to new regulation in Brazil that has capped merchants' fees at 3.6% since March, with additional measures on interoperability expected in mid-May, Sonet said. "In the second half of the year, we expect a negative impact from Brazil on our revenue growth," he said. Pluxee said in January it expected a 50% revenue drop in Brazil by next year. On Thursday, Sonet said this would be a worst-case scenario. ($1 = 0.8480 euros) European stocks under pressure as Brent crude price jumps in 2026 https://www.reuters.com/graphics/PLUXEE-RESULTS/zdvxgkqkrpx/chart.png (Reporting by Dimitri Rhodes in Gdansk, editing by Milla Nissi-Prussak) ((Dimitri.Rhodes@thomsonreuters.com))