- Edenred reported a like-for-like (LFL) operating revenue increase of 11.2%, falling short of the 12.5% estimate.
- The company’s EBITDA reached €1.27 billion, marking a 16% year-over-year growth and surpassing the expected €1.25 billion.
- Organic EBITDA experienced a robust 19% growth.
- Edenred achieved an EBITDA margin of 44.3%, slightly above the estimated 44%.
- Operating revenue was reported at €2.61 billion, an 11% year-over-year increase, slightly above the €2.6 billion estimate.
- Total revenue amounted to €2.86 billion, a 12% year-over-year increase.
- Net income soared to €507 million, signifying a 90% year-over-year growth.
- The dividend per share was €1.21, marginally below the anticipated €1.22.
- The EBIT reached €1.04 billion, a 15% year-over-year increase, exceeding the €1.03 billion estimate.
- Free cash flow totaled €881 million, surpassing the estimated €863.2 million.
- For the fourth quarter, operating revenue was €719 million, an 8.3% increase year-over-year, and exceeded the €709.9 million estimate.
- The Benefits and Engagement segment’s operating revenue was €483 million, up 10% year-over-year, outperforming the €465.1 million estimate.
- Mobility operating revenue reached €161 million, a 9.5% year-on-year increase, higher than the €153 million anticipated.
- Revenue from complementary solutions decreased by 5.1% to €75 million, below the estimated €83.1 million.
- LFL operating revenue for the fourth quarter grew by 7.9%, slightly higher than the predicted 7.79%.
- Benefits and engagement LFL operating revenue increased by 10.6%, surpassing the 9.12% estimate.
- Mobility LFL operating revenue saw a decline of 9.2%, missing the 0.92% estimate.
- Complementary solutions LFL revenue declined by 3.1%, falling short of the anticipated 3.59% growth.
- Edenred maintains its forecast for organic EBITDA growth of at least 10% for the year.
- The company targets a 2025 free cash flow/EBITDA conversion rate above 70%.
A look at Edenred Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 0 | |
| Dividend | 4 | |
| Growth | 3 | |
| Resilience | 3 | |
| Momentum | 2 | |
| OVERALL SMART SCORE | 2.4 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Edenred, a provider of prepaid vouchers for various products and services, is positioned for a stable long-term outlook based on the Smartkarma Smart Scores assessment. With a strong Dividend score of 4, the company shows promise in providing consistent returns to shareholders. Additionally, the Growth and Resilience scores of 3 indicate a positive trajectory for expansion and the ability to withstand market challenges. Although the Momentum score is rated at 2, suggesting some room for improvement in market sentiment, the overall outlook remains optimistic.
Edenred‘s core business of offering vouchers for restaurant meals, childcare, and other rewards for employees and loyal customers underscores its focus on employee benefits and customer retention. The combination of solid dividend prospects, growth potential, and resilience in the face of market fluctuations positions Edenred well for the future, despite some room for improvement in momentum according to the Smartkarma Smart Scores.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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