The Edenred company has announced that its operating income grew 13% in the third quarter, if we compare it with the year 2019. This push is due to the strong boost that the company has given to its direct and indirect sales channels. In this way, operating income stood at 393 million euros in the third quarter, 13.6% more (12.7% in comparable terms) compared to the third quarter of 2020, and 13.0% more in terms comparable to the third quarter of 2019.
Thus, Edenred registered, on September 30, 2021, once the nine months had ended, operating income of 1,130 million euros, 14% more compared to the same period in 2020 and 11% more in the first nine months of 2019.
In light of the results for the year to date and the growth momentum, Edenred is confident in its ability to generate EBITDA for 2021 in the upper half of your target range (between 620 million and 670 million euros2, press release of July 27, 2021), provided there are no major new restrictions as a result of the health crisis.
Finally, assuming that there is no significant increase in the pandemic, Edenred reestablishes the objectives set in its strategic plan “Next Frontier” 2019-2022:
- Annual growth in operating income on a like-for-like basis of more than 8%
- Annual EBITDA growth in comparable terms greater than 10%
- Annual free cash flow / EBITDA conversation rate above 65% 3
Bertrand Dumazy, President and CEO of Edenred, stated: “After a good first half, the group’s results in the third half demonstrate the relevance of our solutions and the soundness of our business strategy. As the world’s leading Group in allocated funds with unmatched human, commercial, technological and financial advantages, they will allow us to continue growing in a sustainable and profitable way. Thanks to the investments, Edenred is at the forefront of changes affecting the professional world, improving the customer experience and making its products more efficient and user-friendly. For example, the deployment of our 100% digital and plastic-free solutions is in tune with the changes in our society, such as the evolution towards a more digital and responsible world ”.
Likewise, the manager continued: «Taking advantage of this momentum, we are improving our forecasts for the whole year 2021 and we expect EBITDA to be in the upper half of the target announced in July. In addition, as long as there is no significant resurgence of Covid-19, which causes new restrictions in our main markets, by 2022 we will reestablish the growth, profitability and cash generation objectives set in our “Next Frontier” 2019-2022 strategic plan ”.