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Edenred’s Key figures and indicators

Everything about Edenred's business model.

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BUSINESS VOLUME : € 26 billion BUSINESS VOLUME

Edenred managed a business volume of € 26 billion in 2017

    TOTAL REVENUE : € 1,339 millionTOTAL REVENUE

     

    2017

    in € million

    2016

    in € million

    Reported
    growth

    Like-for-like
    growth

    Total revenue 1,339 1,139 +17.6% +8.6%
    Of which operating revenue 1,272 1,073 +18.6% +9.1%
    Of which financial revenue 67 66 +1.1% +0.0%

     

    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.

     

     

    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: € 437 million EBIT

     

    2017

    in € million

    2016

    in € million

    Reported
    growth

    Like-for-like
    growth

    Total EBIT 437 370 +18.1% +13.1%
    Of which operating EBIT 370 304 +21.9% +16.0%
    Of which financial EBIT 67 66 +1.1% +0.0%

     

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

    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.

    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.