Prosegur Cash reports a consolidated net profit of EUR 127 million for the first nine months of 2019
Prosegur Cash posted sales of EUR 1.337 billion, up 10% on the same period last year
Madrid, 31 October, 2018.- Prosegur Cash reported sales of EUR 1.337 billion in the first nine months of 2019, an increase of 10% on the same period a year earlier. In addition, it should be noted that growth in local currency (including organic and inorganic growth) has risen 18%. Prosegur Cash reported EBITDA of EUR 288 million in the nine months of 2019, up 15.3% from the same period in 2018. EBIT increased to EUR 213 million, up 7.3%. EBIT margin continued to consolidate the recovery trend seen in previous quarters, amounting to 15.9% in the period. Finally, Prosegur Cash reported a consolidated net income of EUR 127 million in the first nine months of 2019, down 9.5% on the same period a year earlier.
In cash flow terms, Prosegur Cash generated Free Cash Flow of EUR 93 million, maintaining a conversion ratio of 76%, slightly higher than for the same period the previous year. Lastly, total net debt, including treasury stock, amounted to EUR 698 million at the end of the first nine months of 2019. It is worth noting that the company has improved its gearing ratio compared to the previous quarter, bring it to a total net debt to EBITDA ratio of slightly under 2x.
These figures reveal the strength of the underlying business, but still reflect the negative impact of the depreciation of currencies in which the company operates and the application of hyperinflation accounting rules in Argentina, but to a lesser extent than in previous quarters. Furthermore, in October Prosegur Cash obtained confirmation of its Standard & Poor’s BBB rating and a stable outlook.
How the business has evolved, by geographical region:
Latin America accounted for 65% of total sales, reporting sales to this region of EUR 875 million, up 11% on the first nine months of 2018. Organic growth accelerated in this period, thanks to a positive contribution from all markets, among other factors. The inorganic growth contribution was in line with previous quarters.
Europe accounted for 29% of total sales, with sales to this region of EUR 384 million, up 6% compared to the same period in 2018. Revenue from Europe maintained the positive trend seen in previous quarters, although there was a lower inorganic revenue contribution due to the sale of the French business last July.
The AOA (Asia, Oceania and Africa) region accounted for 6% of sales, with sales to this region of EUR 78 million, up 20% in relation to the first nine months of 2018. This region has continued to see climbing sales thanks to business opening up in new markets such as the Philippines and Indonesia.
As regards those activities that come under the New Products unit, sales were reported of EUR 214 million, an increase of 52% on the first nine months in 2018. Thus, the New Products division already represents 16% of Prosegur Cash’s total sales. Sales in Latin America, in this division, grew by 71% to EUR 141 million. In Europe, sales grew by 28% to EUR 69 million, while in AOA sales amounted to EUR 4 million, which consolidates the change in trend seen, as compared to preceding periods.