Full-year 2021 outlook upgraded, supported by double-digit like-for-like growth in the third quarter.
On the back of the success of its innovative solutions and the strong momentum in its direct and indirect sales channels, Edenred’s operating revenue in the third quarter was 13% higher than its 2019 pre-health-crisis baseline year on a like-for-like basis:
- Operating revenue at €393 million in the third quarter, up 13.6% (+12.7% like-for-like) on third-quarter 2020, and up 13.0% like-for-like on third-quarter 2019
- Acceleration in like-for-like growth in the third quarter versus third-quarter 2019 in the Group’s three main regions, after the good performance already reported in first-half 2021
- Double-digit like-for-like growth in all business lines compared to third quarter 2019
- For the nine months ended September 30, 2021, Edenred recorded operating revenue of €1,130 million, up 14% like-for-like on the same period in 2020 and up 11% on the first nine months of 2019
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.
Lastly, assuming no major pandemic surge, Edenred is reinstating the objectives set in its “Next Frontier” 2019-2022 strategic plan:
- Like-for-like annual operating revenue growth of more than 8%
- Like-for-like annual EBITDA growth of more than 10%
- Annual free cash flow/EBITDA conversion rate of more than 65%
|Bertrand Dumazy, Chairman and Chief Executive Officer of Edenred, said: “After a good first half, the Group’s strong performance in the third quarter demonstrates the pertinence of our solutions as well as the strength of our sales strategy. Global leader in earmarked funds, the Group’s unrivaled human, commercial, technological and financial strengths will enable it to continue delivering sustainable and profitable growth going forward. Thanks to its investments, Edenred is at the forefront of the sweeping changes affecting the world of work, improving the customer experience and making its products more efficient and user-friendly. For instance, the deployment of our fully digital, plasticless solutions, is in step with the changes in our society and the shift towards a more digital and responsible world.|
|Building on this momentum, we are upgrading our outlook for full-year 2021 and are now expecting EBITDA in the upper half of the target range announced in July. Further, provided there is no major resurgence of Covid-19 resulting in fresh restrictions on our main markets, for 2022 we are reinstating the growth, profitability and cash generation objectives set out in our “Next Frontier” 2019-2022 strategic plan.”|