Edenred SE (EDNMF) Q1 2025 Sales/Trading Statement Call (Transcript)

2025-04-16 17:17:39 ET

Edenred SE (EDNMF)

Q1 2025 Sales/Trading Statement Call

April 16, 2025 02:30 AM ET

Company Participants

Bertrand Dumazy - Chairman and CEO

Cedric Appert - IR

Conference Call Participants

Andre Juillard - Deutsche Bank

Ed Young - Morgan Stanley

Justin Forsythe - UBS

Pravin Gondhale - Barclays

Simona Sarli - Bank of America

Josh Levin - Autonomous Research

Hannes Leitner - Jefferies

Presentation

Operator

Hello, and welcome to Edenred Q1 2025 Revenue Conference Call. My name is Rushdie, and I'll be your coordinator for today's event. Please note that this call is being recorded. [Operator Instructions] I will now hand you over to your host, Mr. Bertrand Dumazy, to begin today's conference. Please go ahead.

Bertrand Dumazy

Good morning. I am Bertrand Dumazy, the Chairman and CEO of Edenred. I'm surrounded by our IR Officer, Cedric Appert, but also Patrick Bataillard, our Interim CFO till June 2 of this year. Thank you for being with us today for me to share the Edenred Q1 2025 Revenue Presentation. We will be together for the next 60 minutes. I will start with the presentation. You should have the slides, and then I will be more than happy to answer any questions you may have.

I propose that we move to Slide 2. In the executive summary what are the main messages of our Q1 publication. First of all, we delivered top line growth, in-line with our expectation despite a tougher macro environment, especially in Europe. The operating revenue is up 7.1% like-for-like, driven by a good performance in Latin America and in Mobility, but also by our Beyond Food and Beyond Fuel digital services.

The second message is, in fact, we continue to deploy our Beyond strategy, and it gives us an advantage based on this very unique platform serving millions of users, 60 million of them around the world. The third message, Page 3, Edenred is able to confirm its target for full year 2025. What does it mean? An EBITDA growth like-for-like of at least 10%, and a cash conversion, i.e., EBITDA to free cash flow conversion rate superior to 70%. We confirm our target, but we remain vigilant on any further macroeconomic deterioration. You know as much as I know that we are living in a very disrupted environment.

These objectives are possible, thanks to the dynamic we have on our top line, but also it's going to be led by operating performance optimization. What does it mean? Our Fit for Growth plan, which is focused on cost efficiency, but also our product improvement plan for a few businesses that are performing below Edenred standard, and finally, the rationalization of our portfolio. For example, we exited the B2C BaaS activity....

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