In This Article:
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Total Sales: EUR3.6 billion, a 6.4% year-over-year increase.
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Security Business Revenue: EUR1.8 billion, with a 33% organic growth.
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EBITA: EUR237 million, a 1.2% increase year-over-year.
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EBITA Margin: 2.9% for the first nine months, 3.2% in the third quarter.
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Operating Cash Flow: EUR143 million, with EUR83 million generated in September.
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Net Financial Debt: EUR1.5 billion, with a net debt to EBITA ratio of 2.6 times.
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Recurring Cash Flow from Alarms Business: EUR66 million, a 14% increase year-over-year.
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Transformation Products Sales: 32% of total sales.
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Net Income: 2.2% increase year-over-year.
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Tax Rate: 47.4%, a decrease of 517 basis points.
Release Date: November 04, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Prosegur Compania De Seguridad SA (STU:PRHA) reported a 6.4% year-over-year increase in total annual sales, reaching EUR3.6 billion, with growth being purely organic across all geographies.
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The security business marked a 20% increase year-over-year, with EBITA margins reaching 3.2% during the third quarter, driven by enhanced operating efficiencies.
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The company generated EUR143 million in operating cash flow, with a significant contribution from efficient working capital management.
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Prosegur's alarm business showed solid results, with service margins increasing by 9% and 10% in Prosegur alarms and MPA respectively, contributing to a 14% increase in recurring cash flow.
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The company's leverage position improved, with a net debt to EBITA ratio decreasing from 2.8 times to 2.6 times, driven by higher EBITA generation.
Negative Points
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The cash business was negatively impacted by the real depreciation of the Argentine Peso and the Brazilian Real, affecting profitability.
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Restructuring costs in the Australian operation and additional setup costs in the forex business negatively impacted EBITA and EBITA margins.
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The financial results were adversely affected by hyperinflation effects, particularly in Argentina, leading to a negative impact of EUR23.9 million.
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Despite improvements, the net financial debt in absolute terms is expected to remain slightly above the previous year's figure.
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Acquisition costs in the alarm business showed a flat evolution compared to a 7% decline in the first half of the year, with seasonality affecting quarterly costs.
Q & A Highlights
Q: In the security business, there was a slight deterioration in the EBITA margin this quarter compared to last year. What caused this change? A: Maite Rodriguez Sedano, Chief Financial Officer: The margin for the third quarter was 3.2%, which is higher than previous quarters due to seasonality and the passing through of inflation to prices. The slight year-on-year decrease is temporary, and we expect margins to stabilize around 3.2% for the full year.