Finance
Edenred sees 2025 headwinds overshadow profit beat; shares fall
Published by Global Banking and Finance Review
Posted on February 18, 2025
2 min readLast updated: January 26, 2026
Global Banking and Finance Review
Company
Published by Global Banking and Finance Review
Posted on February 18, 2025
2 min readLast updated: January 26, 2026
Edenred expects slower growth in 2025 due to economic uncertainty, despite a strong profit performance in 2024. Shares fell as strategic plans wind down.
By Dimitri Rhodes and Hugo Lhomedet
(Reuters) - French vouchers provider Edenred said on Tuesday it expects slower revenue growth in 2025 as it winds down its medium-term "Beyond22-25" strategic plan amid economic uncertainty in Europe.
Its shares fell 7.79% at 0942 GMT.
"We will continue to prepare for the future growth of Edenred but this growth will be less high that what it was in previous years," said Chairman and Chief Executive Officer Bertrand Dumazy on a call with analysts.
The group, known for its "Ticket Restaurant" vouchers, carried out a series of acquisitions in 2024, notably Spirii, IP, and RB, to seize external opportunities to cushion any deterioration in the economic environment.
High inflation and interest rates have boosted benefits providers like Edenred and Pluxee, as employers sought ways to support staff without raising wages, but the recent easing of interest rates could pose a threat to sustaining this growth.
"In 2025, the level of our costs will increase but not at the same levels as the previous years, it's now time to have a return on investment," Dumazy said.
Edenred reported a 19% organic rise in earnings before interest, taxes, depreciation and amortization (EBITDA) to 1.27 billion euros ($1.33 billion) in 2024, above a company-provided consensus of 1.26 billion euros.
The group expects high single-digit percent operating revenue growth in 2025, impacted by an economic slowdown in Europe and a negative EBITDA impact of 60 million euros from a cap on merchant commissions in Italy, but carried somewhat by an acceleration in Latin America, Dumazy said.
The group confirmed its 2025 guidance but JPMorgan analysts expect "small cuts to FY 25 consensus operating revenue growth" citing "slightly softer momentum in Europe."
Edenred announced its highest earnings per share to date of 2.07 euros for 2024, up 21% from a year ago.
($1 = 0.9565 euros)
(Reporting by Hugo Lhomedet and Dimitri Rhodes; Editing by Mrigank Dhaniwala)
Edenred expects high single-digit percent operating revenue growth in 2025, influenced by an economic slowdown in Europe.
Edenred's shares fell by 7.79% following the announcement regarding its 2025 outlook.
Edenred reported a 19% organic rise in EBITDA to 1.27 billion euros for 2024, exceeding the consensus estimate.
Edenred anticipates challenges such as increased costs and a negative EBITDA impact of 60 million euros due to a cap on merchant commissions.
In 2024, Edenred made several acquisitions, including Spirii, IP, and RB, to mitigate potential economic downturn impacts.
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