Prosegur Cash (CASH) Q2 2024 earnings summary

Executive summary

• H1 2024 sales reached €998 million, up 1.9% year-over-year, with Q2 standalone sales up 5.1% and robust organic growth across all geographies; Transformation Products, especially Cash Today and Forex, now represent 31.8% of total sales, growing double digits.

• EBITDA margin improved by 120 basis points quarter-on-quarter to 11.3% for H1, despite restructuring costs in Australia and expansion in Forex.

• EPS increased by 5.2% year-over-year, supported by lower financial expenses and improved tax rate.

• Free cash flow generation was strong at €29 million for H1, with €28 million generated in Q2.

• Adjusted EBITA margin declined to 11.3% from 13.2% in H1 2023, reflecting margin pressure from inflation and currency headwinds.

Financial highlights

• Total sales reached €998 million, with a negative FX impact that has lessened compared to the previous quarter.

• EBITDA for H1 2024 was €177 million (17.8% of sales); EBITA was €113 million (11.3% margin), both down year-over-year.

• Net profit was €39 million, up 4.5% year-over-year; EPS improved to €0.0258.

• Free cash flow conversion rate stood at 73%.

• Net financial debt increased to €687 million, with leverage at 2.9x, expected to decrease in H2.

Outlook and guidance

• Management expects a significant catch-up in profitability in H2, with all regions anticipated to perform strongly.

• Confident in achieving or exceeding consensus EBITDA for the full year (€260–270 million), driven by improved margins, seasonality in Forex, and recovery in Australia.

• Leverage is expected to fall below 2.5x by year-end, aided by strong cash flow and normalization of comparison base.

• Ongoing restructuring in Australia and expansion of the Forex business are expected to support future growth.

• Transformation Products penetration continues to rise, with a goal to reach 50% of sales by 2030.