Prosegur Cash (CASH) Q3 2024 earnings summary

Executive summary

• Sales increased by 1.7% year-over-year to €1,523 million, with organic growth in all regions and a positive outlook for Q4 as FX headwinds ease.

• Net profit rose 4.1% year-over-year to €66 million, supported by lower financial costs and a reduced tax rate.

• Transformation products, including Cash Today and Forex, grew 9.9% to €489 million, now accounting for 32.1% of total sales, with double-digit growth on a like-for-like basis.

• Free cash flow generation was strong at €63 million in Q3, totaling €92 million year-to-date, supporting a €28 million reduction in net financial debt to €898 million.

• Net financial debt reduced by €28 million quarter-over-quarter, with a second tranche of €15 million dividend paid.

Financial highlights

• EBITDA for the nine months was €275 million (18% of revenue), down 4.3% year-over-year, mainly due to currency mix and restructuring costs.

• EBITA margin improved by 70 basis points quarter-on-quarter to 11.8%, though still below last year due to currency effects and investments.

• EBITA was €179 million, down 12.9% year-over-year, with margin at 11.8%.

• Earnings per share rose 4.5% year-over-year to €0.0432.

• Free cash flow conversion ratio at 76%.

Outlook and guidance

• Q4 is expected to show significant improvement due to easier comparables and normalization of FX and perimeter effects.

• Full-year sales are expected to be slightly below €2 billion, with EBITDA just under €250 million, potentially higher if FX remains stable.

• Leverage ratio stands at 2.9x EBITDA, with a significant reduction expected in the next quarter and further improvement in 2025.

• Transformation Products expected to continue double-digit growth, with penetration over sales rising.

• Cash flow generation is expected to remain strong in Q4 and improve further if Latin America stabilizes.