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• Revenue: EUR516 million, a 9.7% increase over Q1 2024.

• Organic Growth: 13.3%.

• EBITA Margin: 11.8% of sales, an improvement of 110 basis points.

• EBITA: EUR61 million, a 20.9% increase from the previous year.

• Net Income: EUR24 million, a 35.1% improvement over Q1 2024.

• EPS: EUR0.0155, a 30.2% increase from one year ago.

• Free Cash Flow: EUR5 million.

• Net Debt: EUR892 million, with a leverage ratio of 2.3 times.

• Asia Pacific Sales Growth: Over 150% year-on-year.

• Transformation Products Sales: EUR170 million, a 14.1% growth, accounting for 33% of total sales.

• Latin America Sales: EUR314 million, a 5.8% increase.

• Europe Sales: EUR156 million, growth below 1%.

• Asia Pacific Sales: EUR47 million, a 152.4% increase.

• Warning! GuruFocus has detected 7 Warning Sign with XMAD:CASH.

Release Date: May 05, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Prosegur Cash SA (XMAD:CASH) reported a strong sales growth of nearly 10% in euro terms, with a robust 13.3% organic growth, indicating the health of its underlying business.

• The Asia Pacific region showed remarkable performance with sales increasing by over 150% year-on-year, driven by the consolidation of Indian operations and over 40% organic growth.

• EBITA margin improved to 11.8% of sales, representing a 110 basis points increase compared to the previous year, with an absolute improvement of 20.9%.

• The company's transformation products now account for 33% of total sales, showing a 14.1% growth, highlighting the success of its diversification and transformation strategy.

• Prosegur Cash SA (XMAD:CASH) maintained a stable leverage ratio of 2.3 times, with a reduction in net financial debt by EUR13 million over the last 12 months.

Negative Points

• The company faced a negative impact on sales due to exchange rates, particularly from Latin American currencies influenced by the US dollar, which negatively impacted sales by 8%.

• Europe's sales growth was below 1%, affected by one-offs and calendar effects, such as the Easter period falling in different quarters compared to the previous year.

• Despite strong organic growth, the Asia Pacific region's performance was partly due to a change in perimeter, which may not be sustainable at the same high growth rate in the future.

• The financial result increased by EUR1 million, reaching EUR12 million, which could indicate rising financial costs.

• The tax rate remained high at 45%, although it showed a slight improvement of 150 basis points compared to the previous year.

Q & A Highlights

Q: Can you provide insights on the impact of lifted capital controls in Argentina on dividend repatriation? A: Javier Hergueta Vazquez, CFO: The lifting of capital controls in Argentina is positive for the business and the economy. Starting with 2025 results, we can repatriate dividends at the official exchange rate, eliminating repatriation costs. This change, along with Argentina's economic momentum, is beneficial for our operations there.