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Pluxee braces for Brazil reforms as cash conversion falls

Pluxee raised its recurring operating earnings to 488 million euros for the fiscal year, while cash conversion dropped from 89 per cent to 70 per cent. Brazil’s changes to employee meal benefits weigh on the next year’s outlook. The group targets at least 440 million euros in recurring earnings and proposes a larger dividend.

Economics & Markets··Evening
Overhead view of anonymous employees eating lunch at communal tables in a Brazilian workplace canteen, with plates of rice, black beans and vegetables.

Cash conversion declines

Employee-benefit provider Pluxee closed its fiscal year with revenue of 1.302 billion euros, up 1.2 per cent as reported. Its recurring earnings before interest, taxes, depreciation and amortisation reached 488 million euros, a 3.8 per cent increase at constant exchange rates and business scope. The company enters the next fiscal year facing a further adjustment to Brazil’s meal-benefit rules.[1]

Recurring free cash flow decreased from 417 million euros to 341 million euros. Cash conversion fell from 89 per cent to 70 per cent. Net profit attributable to the parent declined 13.5 per cent to 170 million euros, while adjusted net profit increased 1.2 per cent to 223 million euros.[1]

Brazil adjustment shapes next year’s targets

Pluxee describes the coming fiscal year as a transition period as Brazil changes its worker meal-benefit rules.[1], [2]

It targets recurring earnings of at least 440 million euros and cash conversion of at least 50 per cent in the coming fiscal year. Fourth-quarter operating revenue declined 6.2 per cent organically. Management expanded efficiency initiatives in Brazil and across the group.[1]

Proposed dividend rises 71 per cent

Pluxee proposes a dividend of 0.65 euros a share, a 71 per cent increase. The group had already completed 100 million euros of share repurchases in May. Net financial cash reached 1.341 billion euros at the fiscal year-end.[1]

References

  1. News sourcePluxeePluxee proposes higher dividend as cash conversion declines↩1↩2↩3↩4↩5
  2. News sourceBFM BoursePluxee faces a Brazil reset after annual results↩
Central banks and the rate cycleEnergy transition and climate

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