In This Article:
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Revenue: EUR4.9 billion, a 13.9% increase year over year.
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EBITA: EUR328 million, 17% higher year over year.
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Cash Flow from Operations: EUR313 million.
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Free Cash Flow: EUR132 million, a 16% increase year over year.
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Net Debt-to-EBITDA Ratio: 2.3 times, reduced from 2.6 times in December 2023.
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Security Business Revenue: EUR2.5 billion, with a 19% organic growth.
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Security Business EBITA Margin: 3.3% for the year, 4.1% in Q4.
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Alarm Business Client Base: 962,000, a 10.5% increase year over year.
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Recurring Cash Flow from Alarms: EUR72 million, a 48% increase year over year.
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Net Financial Debt: EUR1.26 billion.
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Average Cost of Debt: 2.5% with 68% at fixed rate.
Release Date: February 28, 2025
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) achieved an all-time high revenue of EUR4.9 billion, marking a 13.9% increase year over year, driven by organic growth across all geographic regions.
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EBITA increased by 17% to EUR328 million, with significant contributions from the Security and Cash businesses.
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The company generated strong cash flows, with operating cash flow reaching EUR313 million and free cash flow increasing by 16% year over year.
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Net debt-to-EBITDA ratio improved from 2.6 times in 2023 to 2.3 times, indicating effective debt management.
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Prosegur's Alarm business showed solid results, with a 48% increase in recurring cash flow, driven by increased service margins and customer base growth.
Negative Points
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The company faced challenges such as economic turmoil in Argentina and a labor strike in Germany, impacting operations.
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Hyperinflation accounting led to increased depreciation expenses and financial results, affecting reported profitability.
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Operating cash flow in the Security business decreased by 32% due to increased working capital requirements from higher sales.
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The depreciation of the Argentine peso and Brazilian real slightly reduced total sales in the Cash business.
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CIPHER business reported more negative EBITDA, indicating challenges in achieving profitability in this segment.
Q & A Highlights
Q: Can you provide more details on the evolution of the AVOS, CIPHER, and Corporate businesses, particularly regarding the positive EBITDA in Corporate? A: Maite Rodriguez Sedano, CFO, explained that the positive EBITDA in Corporate is due to increased royalties from a new agreement with the Spanish tax authorities and revenue from building sales in Austria. Additionally, there were fewer severance payments compared to the previous year. For AVOS and CIPHER, both are performing as expected. CIPHER is receiving significant investment to enhance its technology, while AVOS has shown strong results, especially after a management change, leading to improved sales and margins.