Edenred 2 2Q operating revenue EUR672m, estimate EUR677.8m

Edenred 2 2Q operating revenue EUR672m, estimate EUR677.8m

Edenred, a global leader in employee benefits and mobility services, has reported its second-quarter 2025 operating revenue, which stood at €672 million. This figure is slightly below the estimated €677.8 million, reflecting a 7.1% like-for-like growth compared to the same period last year. The company's strong performance in the first half of 2025, with a total operating revenue of €1,339 million, underscores its resilience in a challenging economic environment.

Key drivers of Edenred's growth include robust performances in Latin America and the rapid expansion of its Beyond solutions in both Benefits & Engagement and Mobility. The company's digital platform continues to innovate and seize new business opportunities, particularly in high-growth markets such as Germany and Taiwan. The Beyond Food and Beyond Fuel solutions are also contributing significantly to the company's revenue growth, with these offerings accounting for an increasing share of business.

However, the Complementary Solutions business line faced challenges, primarily due to the planned exit from B2C business with fintechs and lower performance in certain regions. These factors contributed to a 7.6% decrease in operating revenue for this line compared to the first half of 2024.

Edenred's strategy to optimize operating performance is evident in its successful rollout of the Beyond22-25 strategy, which includes leveraging digital platforms, expanding offerings for HR departments and fleet managers, and forging strategic partnerships. The company continues to benefit from the operating leverage inherent to its platform model and the initial effects of its "Fit for Growth" operating efficiency plan.

Despite these challenges, Edenred confirms its objectives for 2025, including a like-for-like EBITDA growth of at least 10% and a free cash flow/EBITDA conversion rate above 70%. The company's A- rating from S&P Global Ratings and its strong cash generation, with funds from operations before other income and expenses (FFO) of €468 million, up by 17.0% as reported, further underscore its financial stability.

In conclusion, while the second-quarter 2025 operating revenue was slightly below expectations, Edenred's overall performance in the first half of the year demonstrates its ability to navigate economic challenges and capitalize on growth opportunities. The company's strategic initiatives and operational efficiency plans position it well for continued success in the second half of 2025.

References:
[1] https://www.webdisclosure.com/press-release/edenred-first-quarter-2025-revenue-0JvVxRj0pfg