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Edenred: Strong Organic Growth In First-half EBIT, Up 12.1%

PARIS, August 25, 2011 /PRNewswire/ --


Robust like-for-like performance in first-half 2011
  • Issue volume up 10.0% to €7,264 million
  • EBIT up 12.1% to €167 million
  • Recurring profit after tax up 31.3% [1] to €96 million
  • Funds from operations [2] (FFO) up 20.2% to €119 million

Results that reflect the Group's long-term strategy, focused on:
  • Issue volume organic growth in the core business  

Objective confirmed: normalized growth in issue volume of between 6% and 14% per year like-for-like
  • Accelerating the digital transition

Objective confirmed: paperless solutions to account for 50% of issue volume by 2012

Full-year 2011 EBIT target: €340 million to €360 million

The consolidated financial statements for the six months ended June 30, 2011 were approved by the Board of Directors on August 24, 2011. The Group's main financial indicators for the period are presented below:
    (in EUR millions)           H1 2010[3] H1 2011         % change
                                                   Reported  Like-for-like[4]

    Issue volume                     6,615   7,264    +9.8%           +10.0%
    Operating revenue                  422     456    +8.1%            +9.2%

    Financial revenue                   39      44   +14.8%           +16.0%

    Total revenue                      461     501    +8.6%            +9.8%
    Operating EBIT                     116     123    +5.7%           +10.8%

    Financial EBIT                      39      44   +14.8%           +16.0%

    EBIT                               155     167    +8.0%           +12.1%
    Operating profit before tax
    and non-recurring items            114     144   +25.8%
    Net profit, Group share             37      98
    Recurring profit after tax          72      96   +31.3%
    Recurring earnings per share
    (in EUR)                          0.32    0.42


Issue volume amounted to €7,264 million in the first half of 2011, up 10.0% like-for-like and 9.8% as reported, after taking into account the 0.9% negative currency effect for the period.

The increase reflected strong growth in emerging markets (up 18% like-for-like). These markets accounted for 57% of total issue volume, led by Latin America. Issue volume in developed markets rose by 1%. However, excluding the loss of the CONSIP contract in Italy [5], the growth rate was 3.5%, in line with the Group's 2010 performance in these markets.  

Issue Volume by type of solution in H1 2011
                                                  Incentive  Public
                                        Expense      and     social
                   Employee benefits   management  rewards  programs TOTAL
                    Meal &    Quality
                     Food     of life
    Issue volume

    (in EUR
    millions)       5,794       520       618        271       61    7,264
    % of total
    issue volume      80%        7%         8%        4%        1%    100%
    growth           +10%      +10%       +19%     -3%[6]     +17%    +10%

The drivers of the 10.0% growth in issue volume were :
  • Higher penetration rates in existing markets, accounting for 4.8 points of growth. Effective sales and marketing initiatives were deployed in all of Edenred's markets to attract new clients and beneficiaries. These initiatives added close to 20,000 beneficiaries in France and 35,000 in Brazil for Ticket Restaurant® and nearly 16,000 in the United Kingdom for Childcare Vouchers[7].
  • Increased average face values, contributing 4.5 points of growth, particularly in Latin America.
  • New solutions, generating 0.7 points of growth in line with last year's 0.6 points. This driver will represent an increasingly significant contributor to issue volume growth from 2012, with the systematic deployment of new solutions.

The 10.0% like-for-like increase in first-half issue volume was in line with Edenred's mid-term target of 6% to 14% normalized annual growth.

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