Excellent start to the year with continued strong momentum in sales and digital innovation
Edenred recorded sustained revenue growth in the first quarter, attesting to the relevance of its digital innovation strategy and its commercial success:
- Operating revenue up 17.3% as reported (+15.3% like-for-like) (+12.7% like-for-like) ) versus first-quarter 2021, totaling €426 million
- Double-digit like-for-like revenue growth in all regions and in both main business lines
- Driven by strong business volume and higher interest rates in some regions, other revenue increased by nearly 30%, from €10 million to €13 million
- Total revenue of €439 million, up 17.6% as reported (+15.7% like-for-like)
Edenred leveraged its unique digital platform following the transformation of its business model:
- A value proposition broadened by the extension of its Beyond Food and Beyond Fuel portfolio of solutions
- A recognized user experience supported by technological leadership and continued substantial investment
- Further strong sales momentum, both with key accounts and in the SME segment revenue increased by nearly 30%, from €10 million to €13 million
- Recognized ESG leadership as sustainable development becomes embedded in the Group’s DNA
- An inflationary environment further enhancing the appeal of the Group’s solutions as tools for increasing employees’ purchasing power and improving the efficiency of fleet management
Confirmation for 2022 of the annual targets set in the Group’s Next Frontier strategic plan (2019-2022):
- Like-for-like operating revenue growth of more than 8%
- Like-for-like EBITDA growth of more than 10%
- Free cash flow/EBITDA conversion rate of more than 65%
In light of its year-to-date performance and growth momentum, Edenred is confident in its ability to generate full-year 2021 EBITDA in the upper half of its target range (between €620 million and €670 million, press release dated July 27, 2021), providing there are no new major restrictions as a result of the health crisis.
Bertrand Dumazy, Chairman and Chief Executive Officer of Edenred, said: “After our historic results in 2021, Edenred has recorded an excellent first quarter thanks to the exemplary commitment shown by Edenred’s teams again at the start of this year. Edenred is thus confirming its sustainable and profitable growth trajectory. All regions delivered double-digit growth, driven by a remarkable performance from our Employee Benefits and Fleet & Mobility Solutions.
Thanks to its unique digital platform, Edenred is asserting itself quarter after quarter as the innovation leader in its markets. Our value proposition is constantly being broadened with new solutions in line with our clients’ expectations, as well as new features that improve and streamline the user experience.
We are therefore confident in our ability to maintain a sustained pace of growth for the rest of the year, driven by favorable post-Covid trends and a macroeconomic environment that strengthens the appeal of our solutions.”