In This Article:
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Revenue Growth: Increased by 1.7% in EUR terms, reaching EUR 1,523 million.
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EBITA Margin: 11.8% for the first nine months, with a quarter-on-quarter improvement of 70 basis points in Q3.
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Net Profit: Increased by 4.1%, totaling EUR 66 million.
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Free Cash Flow: EUR 63 million generated in Q3, bringing the year-to-date figure to EUR 92 million.
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Net Financial Debt: Reduced by EUR 28 million to EUR 898 million.
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Transformation Products Penetration: Increased to 32.1% of total sales, with a growth rate of 12.7% in EUR terms.
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Sales by Region: Latin America decreased by 1% to EUR 932 million; Europe increased by 9.1% to EUR 492 million; Asia Pacific decreased by 6.1% to EUR 99 million.
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Earnings Per Share: Improved by 4.5% to 4.32.
Release Date: October 31, 2024
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) reported a 1.7% increase in sales in EUR terms, with organic growth reaching 2.2% when excluding inorganic operations.
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The company achieved a free cash flow generation of EUR 63 million in Q3, bringing the year-to-date figure to EUR 92 million, indicating strong cash flow performance.
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Net profit increased by 4.1% due to lower financial costs and a reduced tax rate, despite challenges in EBITA.
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Transformation products have increased their penetration to 32.1% of total sales, showing a 12.7% growth on a like-for-like basis.
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Prosegur Cash SA (XMAD:CASH) has reduced its net financial debt by EUR 28 million, showing a positive trend in leverage ratio improvement.
Negative Points
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Currency devaluation, particularly in Argentina, continues to negatively impact financial results, affecting EBITA and sales growth.
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The EBITA margin decreased compared to the previous year, primarily due to currency effects and restructuring costs in Australia.
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Sales in Latin America, which represent 61% of total sales, decreased by 1% due to significant currency impacts.
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The Asia Pacific region saw a 6.1% decrease in revenues, driven by the deconsolidation of Australian operations.
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Despite improvements, the total net debt to EBITA ratio remains at 2.9 times, still affected by previous year's challenges.
Q & A Highlights
Q: What should we expect for Q4 given the current situation in Argentina and the Peso, and are there any serious consequences from the Cooperation Agreement announced yesterday? A: We expect a significant improvement in Q4 compared to last year, with consensus estimates slightly below EUR 2 billion in sales and EUR 250 million in EBITA. We believe we can exceed these estimates under a normalized FX scenario. The Cooperation Agreement is a formality with no significant underlying changes. Regarding leverage, we expect to be within our 2.5 times internal threshold by year-end, with further improvements in 2025. (Javier Hergueta, CFO)