Edenred Reports Robust Financial Performance, Despite Regulatory Challenges
Edenred, the French provider of prepaid services, has announced a significant increase in its net profit for 2024, reaching €507 million, nearly doubling its 2023 earnings. The company has also reaffirmed its ambitious targets for 2025, despite facing regulatory changes in Italy.
Strong Financial Performance
Edenred’s net profit for 2024 exceeded market expectations, reaching €507 million, a remarkable 90% increase compared to 2023. Excluding a hefty antitrust fine paid in 2023, the company’s earnings still witnessed an impressive 19% growth.
The company’s revenue escalated by 13% to €2.85 billion, driven by strong performances in its employee benefits division (€1.7 billion, +15%) and mobility solutions (€624 million, +8%). Edenred’s EBITDA (earnings before interest, taxes, depreciation, and amortization) also surged by 15.7% to €1.26 billion, outperforming analysts’ forecasts.
Ambitious 2025 Targets
Despite the uncertain economic landscape in Europe, Edenred remains optimistic about its future prospects. The company aims to achieve more than 10% growth in its EBITDA for 2025 on a comparable basis, factoring in the introduction of a commission cap in Italy.
"We have set ambitious goals for 2025," said Bertrand Dumazy, Edenred’s CEO. "Even in the face of a challenging economic environment, we are confident in our ability to drive growth through our resilient business model, expanding employee benefits and mobility activities, and leveraging our recent acquisitions."
Regulatory Impact in Italy
Edenred acknowledges the potential impact of a commission cap on merchant fees in Italy, where private sector merchants will be restricted to paying a maximum of 5% to title-restaurant issuers. This regulatory change, expected to take effect in the second half of 2025, is estimated to cost Edenred €60 million.
Strategic Initiatives
To mitigate the impact of regulatory changes and drive continued growth, Edenred has initiated a portfolio rationalization strategy and launched a program to reduce its operational expenses. The company is implementing shared service centers for its support functions and optimizing its operational processes.
Dividend Increase
Edenred announced a 10% increase in its dividend for 2025, which will be distributed at €1.21 per share. This reflects the company’s strong financial performance and its commitment to rewarding shareholders.
Global Reach and Service Offerings
Edenred operates in over 50 countries, employing approximately 12,000 people worldwide. The company provides a range of specialized payment solutions, including meal vouchers (Ticket Restaurant), employee incentives (gift cards, platforms), mobility solutions (multi-energy, electric charging, maintenance, tolls, and parking), and business payments (virtual cards).
