In This Article:
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Revenue: 2,090 million, a 12.3% increase over last year.
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Earnings Per Share (EPS): $0.06, a 45.1% increase from $0.0413 in 2023.
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EBITDA: 383 million, a 17.5% improvement over 2023.
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EBITDA Margin: 12% of sales, a 20 basis points improvement over 2023.
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Net Profit: 91 million, a 44.9% increase on 2023.
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Free Cash Flow: 148 million, a 24% improvement over 2023.
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Net Debt: 886 million, an improvement of 12 million from the previous quarter.
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Net Debt to EBITDA Ratio: 2.3 times, within comfort levels.
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Transformation Products Sales: 673 million, a 19% increase over 2023.
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Latin America Sales: 1,294 million, a 15% increase over 2023.
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Europe Sales: 653 million, a 7% increase over 2023.
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Asia Pacific Sales: 143 million, a 15% improvement over 2023.
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Shareholder Compensation: 8 million share buyback plan and proposed dividend increase to 63 million.
Release Date: February 27, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Prosegur Cash SA (XMAD:CASH) achieved a new milestone in sales, surpassing 2 billion, with a 12.3% increase over the previous year.
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Earnings per share grew impressively by over 40%, reaching $0.06 per share.
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The company generated 148 million in free cash flow, a 24% improvement over 2023, enabling a reduction in net debt.
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Transformation products accounted for 32.2% of total sales, growing by 18.8% to 673 million.
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Prosegur Cash SA (XMAD:CASH) improved its ESG ratings, with significant reductions in CO2 emissions and increased use of recycled materials.
Negative Points
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The company faced challenges such as a strike in Germany and restructuring in Australia, impacting profitability.
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Despite growth, the EBITDA margin improvement was modest, with a 20 basis points increase over 2023.
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Foreign exchange impacts, although reduced, still negatively affected sales by 6.2%.
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Margins in Latin America, while improving, remain below historical levels of 20-21%.
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The Forex business required significant investment, impacting short-term profitability, with expected returns in the coming years.
Q & A Highlights
Q: Can you provide insights into the 18% organic growth achieved in 2024, specifically the contributions from pricing and volumes, and any regional insights? A: The growth was driven by a mix of approximately two-thirds volume and one-third pricing. Looking forward to 2025, we anticipate continued growth driven by a strong core business aligned with GDP growth and significant growth in new products.
Q: Latin America's margins were 17% in 2024, which is lower than the 20-21% seen in previous years. How do you see these margins evolving? A: We expect margins to improve in the coming years, aiming to reach 21%. The change in country mix has impacted margins, but we anticipate improvements across most markets.