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Edenred’s Key figures and indicators

Everything about Edenred's business model.

On this section, access to

Operating revenue Operating revenue

Operating revenue includes:

  • Commissions paid by corporate clients ;
  • Commissions paid by partner merchants when benefits and services used by employees are presented for reimbursement;
  • revenue from employee users ;
  • Profits on vouchers that are lost or expire without being reimbursed ; and
  • revenue generated by value added businesses such as incentive programs, human services and event-related services. The corresponding revenue is the amount billed to the corporate client, and is recognized on delivery of the solutions.

RevenueRevenue

 

2017

in € million

2016

in € million

Reported
growth

Like-for-like
growth

Operating revenue 1,272 1,073 +18.6% +9.1%
Financial revenue 67 66 +1.1% +0.0%
Total revenue 1,339 1,139 +17.6% +8.6%

Since 2010, like-for-like growth in operating revenue has averaged de +8.0% per year. This performance is in line with the historical goal of medium-term annual growth.

 

 

 

Business model Business model

Edenred is pursuing its transformation, in line with its Fast Forward strategic plan unveiled at a dedicated event in October 2016. Fast Forward is designed to realign the current business base while laying the foundations for new sources of profitable, sustainable growth.

Through this ambitious strategic plan, the Group wants to continue to grow its Employee Benefits business, broaden its presence in Fuel & Mobility Solutions and expand its Corporate Payment activities, which are included in the Complementary Solutions business line.

The Group’s new business model is set out in the diagram below:

EBIT EBIT

 

2017

in € million

2016

in € million

Reported
growth

Like-for-like
growth

Operating EBIT 370 304 +21.9% +16.0%
Financial EBIT 67 66 +1.1% +0.0%
Total EBIT 437 370 +18.1% +13.1%

 

Total EBIT corresponds to operating profit before other income and expenses, equal to operating EBIT and financial EBIT, equal to financial revenue.

Since 2010, like-for-like growth in operating EBIT has averaged de +13.8% per year. This performance is in line with the historical goal of medium-term annual growth.

 

Funds from operations (FFO)  Funds from operations (FFO)

 

2017

in € million

2016

in € million

EBITDA 510 427
Net financial expense (50) (58)
Income tax paid (113) (97)
Non cash income and expenses included in EBITDA 30 19
Dividends received from investment in associates and joint ventures 11 8
Funds from operations before other income and expenses 388 299
  2017 2016
Reported growth in FFO +29.8% +6.5%
Like-for-like growth in FFO +21.8% +15.4%

 

The Edenred’s business model generates a large amount of FFO.

Since 2010, like-for-like growth in FFO has averaged de +15.5% per year. This performance is in line with the historical goal of medium-term annual growth.

Income statement  Income statement

 

2017

in € million
(excluded number of shares)

2016

in € million
(excluded number of shares)

Total revenue 1,339 1,139
   Of which operating revenue 1,272 1,073
   Of which financial revenue 67 66
Total EBIT 437 370
   Of which operating EBIT 370 304
Net profit - Group Share 247 180
Weighted average number of shares outstanding (in thousands) 233,064 230,113
Earnings per share – Group share 1,06 0,78

 

 

Balance sheet  Balance sheet

 

2017

in € million

2016

in € million

Goodwill 994 904
Intangible assets 433 313
Property, plant and equipment 46 38
Other non-current assets 160 261
Working capital Assets 2,103 1,741
Restricted funds 1,127 942
Cash and cash equivalents 1,440 1,433
Total assets 6,303 5,632
Equity (1,287) (1,161)
Provisions and deferred tax 219 206
Working capital liabilities 5,218 4,566
Gross debt 2,153 2,021
Total liabilities 6,303 5,632

 

Key ratios and indicators  Key ratios and indicators

Three key indicators in line with annual medium-term targets from the Fast Forward strategic plan:

•    Like-for-like operating revenue growth > + 7%, resulting from a mid-single digit like-for-like growth of operating revenue in Employee benefits and a double-digit like-for-like growth of operating revenue in Fleet & Mobility Solutions;

•    Like-for-like operating EBIT growth > + 9%;

•    Like-for-like Funds from operations growth > + 10%.

The Group’s estimated ratio of adjusted funds from operations to adjusted net debt is 42% compared to 34% in 2016, above the 30% threshold supporting the “Strong Investment Grade” rating based on Standard & Poor’s criteria.

  2017 2016
Like-for-like operating revenue growth +9.1% +8.3%
Like-for-like operating EBIT growth +22% +17,3%
Like-for-like FFO growth +29.8% +15.4%
Adjusted FFO / adjusted net debt 42% 34%

 

More information about financial results and quarterly information, click here.