Edenred Reports Surge in Earnings and Proposes 10% Dividend Increase

Edenred SE (EDNMF) sees earnings rise in fiscal 2024. The company reports a net profit at EUR 507 million and an EPS of EUR 2.07. It proposes a 10% dividend hike, indicating strong financial health and reaffirming growth projections.

Date: 18-02-2025

AI Rating: 8

Overview of Earnings and Financial Performance

Edenred SE has reported a significant increase in its earnings for fiscal 2024, with net profit surging to EUR 507 million from EUR 267 million in the previous year. This kind of growth is a strong indicator of the company's profitability.

Earnings Per Share (EPS)

The earnings per share increased to EUR 2.07, up from EUR 1.71 last year, which suggests that the company's profitability has improved relative to the number of shares outstanding.

Revenue Growth

Operating revenue saw an increase to EUR 2.60 billion from EUR 2.34 billion, and total revenue rose to EUR 2.86 billion from EUR 2.55 billion, indicating robust revenue growth year-over-year.

Net Income

The significant jump in net profit from EUR 267 million to EUR 507 million highlights the company's exceptional performance this fiscal year.

Free Cash Flow (FCF)

While free cash flow figures are not explicitly provided, the company aims for a conversion rate above 70% relative to EBITDA, which reflects a strong focus on generating cash from its operations.

Future Outlook

Edenred's outlook remains positive; the company targets at least 10% like-for-like EBITDA growth. However, it is important to note that the company anticipates a EUR 60 million hit to EBITDA due to a new merchant cap in Italy effective in 2025, which could present challenges moving forward.

Stocks: EDNMF