2018 Annual Results
Another record year fueled by double-digit organic growth in all regions and in all business lines.
Acceleration of growth in 2018:
- Total revenue of €1,378 million, up 11.9% like-for-like[1] (up 4.4% as reported)
- Operating EBIT margin[2]: up 2.0 points to 30.9%
- EBIT[3] up 17.5% like-for-like (up 7.3% as reported) to €461 million
- Net profit, Group share: €254 million (up 5.2% as reported)
- Recommended dividend of €0.86 per share, representing a payout ratio of 80% of net profit, Group share
- Strong free cash flow generation (€435 million) enabling a reduction of net debt to €659 million (versus €696 million at end-2017) after €196 million dedicated to acquisitions
Like-for-like, Edenred’s performance in 2018 was significantly higher than the annual growth targets set for the medium term:
- Operating revenue: up 13.3% (annual target: above 7%)
- Operating EBIT[4]: up 23.5% (annual target: above 9%)
- Funds from operations (FFO)[5]: up 17.0% (annual target: above 10%)
Thanks to its business excellence, innovation capabilities, global technology platform and targeted acquisitions, Edenred begins the new year with confidence. As the global leader in payment solutions for the working world, the Group expects to achieve its annual organic growth targets set for the medium term again in 2019.
Bertrand Dumazy, Chairman and Chief Executive Officer of Edenred, said: “The successful implementation of our Fast Forward strategic plan has once again enabled us to deliver record results for the year. The double-digit organic growth we achieved in 2018 reflects our ability to win new clients, develop new solutions and boost the development of the companies we’ve acquired. By launching numerous innovations, notably in the areas of mobile payment and app-to-app payment, which have already been deployed in 12 countries, Edenred has taken up position at the forefront of digitalization, for the benefit of all our clients, users and partner merchants. Looking ahead, thanks to our ability to increase our market penetration, capitalize on our recent acquisitions and innovate in order to differentiate and enhance our portfolio of solutions, we are confident that we will continue to deliver profitable and sustainable growth.”
[1] Like-for-like growth corresponds to organic growth, that is, growth at constant scope of consolidation and exchange rates.
[2] Ratio of operating EBIT to operating revenue.
[3] Operating profit before other income and expenses.
[4] EBIT adjusted for other revenue.
[5] Before other income and expenses.
Financial data for 2018 are provided in accordance with IFRS 9 and IFRS 15, effective since January 1, 2018. To ensure a meaningful comparison with 2017, financial data for the period included in this press release have been restated in accordance with the new standards. A table showing a breakdown of the restatements per quarter is provided in the appendix.
As part of this transition, the line item “financial revenue” has become “other revenue”.
Venezuela has been temporarily excluded from data on like-for-like performance and currency effects, due to the country’s current level of inflation and the devaluation of its currency.
Argentina has been qualified as a hyperinflationary economy since July 1, 2018. The Group has therefore applied IAS 29 – Financial Reporting in Hyperinflationary Economies to its operations in this country.
