First-half 2018 results: Edenred publishes record results

Accelerated organic growth in the second quarter, record organic growth in operating revenue and operating EBIT, first-half results are higher than expected.

Edenred reports solid results for first-half 2018:

Total income up 10.1% like-for-like and 2.3% as reported to €665 million
Operating EBIT margin up 1.8 points to 29.7%
EBIT up 14.0% like-for-like and 4.3% as reported to €215 million
Increase in net profit, Group share to €124 million

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Like-for-like, Edenred's performance in first-half 2018 significantly exceeded its annual growth targets:

Operating revenue: up 11.6% (annual target: above 7%)
Operating EBIT: up 20.3% (annual target: above 9%)
Funds from operations (FFO): up 17.5% (annual target: above 10%)

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Confident about its outlook for the second half of the year, Edenred is expecting EBIT of between €440 million and €470 million for full-year 2018, compared with €429 million in 2017.

Bertrand Dumazy, Chairman and Chief Executive Officer of Edenred, said: “Thanks in particular to the acceleration in our growth in the second quarter, Edenred recorded double-digit organic growth for the first half of the year as a whole in both Europe and Latin America and in both Employee Benefits and Fleet & Mobility Solutions. This strong increase in our revenues led to a further improvement in our EBIT margin, confirming our capacity to capitalize on our strong operating leverage.
We are now leveraging our global, leading-edge technology platform, featuring the most advanced digital means of payment. This unique omnichannel platform enables us to roll out innovative payment solutions, forge partnerships with tech leaders and offer high-value-added services, all increasingly quickly and efficiently, thereby improving both the user experience and the quality of service provided to our corporate clients and partner merchants.”