Pluxee posts smaller-than-expected organic sales drop, despite Brazil
Pluxee’s Third Quarter Performance and Regional Impact
July 3 (Reuters) - French voucher and benefits company Pluxee posted on Friday a lower-than-expected organic drop in sales in the third quarter, beating expectations, supported by new client wins in spite of an uncertain environment.
Sales Figures and Market Expectations
The company's sales dropped 3.3% organically to €312 million ($357.1 million) from €310 million a year earlier, above the €299 million that was expected in a company-compiled consensus.
Comparison with Competitors
Benefits providers like Pluxee and Edenred are increasingly relying on regions like Latin America to drive profits, as they cope with slowdowns in their main business areas.
Regional Performance: Focus on Brazil
Impact of Regulatory Cap
As anticipated, third-quarter performance in the region was mostly impacted by the 3.6% regulatory cap on merchant discount rates in Brazil.
Management Response
"In Brazil, our teams remain fully mobilized in delivering our action plan," Pluxee CEO Aurélien Sonnet said in a statement.
Outlook and Financial Objectives
The company also confirmed its financial objectives for the full year.
($1 = 0.8738 euros)
(Reporting by Mathias de Rozario and Zakarya Meliani; Editing by Jacqueline Wong and Thomas Derpinghaus)
