By Dimitri Rhodes and Hugo Lhomedet
(Reuters) -French vouchers provider Edenred said on Tuesday it expects slower revenue growth in 2025 as it winds down its medium-term “Beyond22-25” strategic plan amid economic uncertainty in Europe.
The company’s shares fell 6% at 1103 GMT, paring losses after falling as much as 8.7%. Morningstar analyst Ben Slupecki told Reuters the stock move was largely a reaction to decelerating fourth-quarter performance and the management’s concern over European economic uncertainty.
“We will continue to prepare for the future growth of Edenred but this growth will be less high that what it was in previous years,” said Chairman and Chief Executive Officer Bertrand Dumazy on a call with analysts.
The group, known for its “Ticket Restaurant” vouchers, carried out a series of acquisitions in 2024, notably Spirii, IP, and RB, to seize external opportunities to cushion any deterioration in the economic environment.
High inflation and interest rates have boosted benefits providers like Edenred and Pluxee, as employers sought ways to support staff without raising wages, but the recent easing of interest rates could pose a threat to sustaining this growth.
“In 2025, the level of our costs will increase but not at the same levels as the previous years, it’s now time to have a return on investment,” Dumazy said.
Edenred reported a 19% organic rise in earnings before interest, taxes, depreciation and amortization (EBITDA) to 1.27 billion euros ($1.33 billion) in 2024, above a company-provided consensus of 1.26 billion euros.
The group expects high single-digit percent operating revenue growth in 2025, impacted by an economic slowdown in Europe and a negative EBITDA impact of 60 million euros from a cap on merchant commissions in Italy, but carried somewhat by an acceleration in Latin America, Dumazy said.
The group confirmed its 2025 guidance but JPMorgan analysts expect “small cuts to FY 25 consensus operating revenue growth” citing “slightly softer momentum in Europe.”
Edenred announced its highest earnings per share to date of 2.07 euros for 2024, up 21% from a year ago.
($1 = 0.9565 euros)
(Reporting by Hugo Lhomedet and Dimitri Rhodes; Editing by Mrigank Dhaniwala and Shailesh Kuber)
