Prosegur Cash consolidated net profit grows 41.3% to 31 million euros
New Products continue to increase their relative weight in Prosegur Cash's overall turnover and now represent 21.4% of total revenue. The acquisition of Redpagos in Uruguay and the alliance with Euronet in Latin America are particularly notable.
Madrid, 30 July, 2021. Prosegur Cash has reported sales of 692 million euros in the first six months of 2021, 10.3% down on the first half of last year. While still showing the translational impact of foreign exchange, there has been a general improvement in revenue growth in local currency in all geographies. Turnover in local currency increased to 3.1% in the second quarter of the year.
Prosegur Cash's EBITA reached 91 million euros in the first half of the year, with a margin of 13.1%. If the capital gains generated by the divestments made in the period are excluded, the underlying margins showed gradual improvements during the 6 months, reaching an EBITA of 70 million euros, and a margin of 10.2%.
Prosegur Cash's consolidated net profit from January to July improved 41.3% to €31 million. These figures show the company's ability to adapt to the complexity of the environment resulting after the health crisis.
Prosegur Cash has maintained its positive development in cash generation with 65 million euros of Free Cash Flow in the period and a conversion ratio of 79%. In addition, the company has shown a stable financial leverage ratio, despite the inorganic activity of the period. Thus, the total net debt at the end of these first 6 months was 680 million euros, including IFRS 16, deferred payments and treasury stock. This figure represents a decrease of 57 million euros compared to the end of the first half of 2020.
Activity by geographies
Latin America has contributed 65% of the total turnover. The region reported sales of 447 million euros. As a consequence of the unfavourable performance of currencies, this is 13% less than for the first six months of 2020. However, the company recorded an acceleration in organic growth that went from 4.7% in the first quarter to 5.3% in the first half, despite the restrictions remaining on mobility in various markets in this region.
Europe represented 27% of the total turnover with sales of 190 million euros, which is a decrease of 9% compared to the first half of 2020; mainly due to the divestment of the AVOS business. As happens in the Latin American region, organic growth advanced up to 15.5% in the second quarter of the year; showing a favourable development compared to the first three months.
Asia-Pacific, which also saw significant improvement in organic growth during the second quarter of the year, contributed 8% of total sales with 55 million euros; 20% more than for the same period in 2020. Despite the positive trend in turnover, operations development in the region is still impacted by the effects of COVID-19.
Finally, New Products continues to evolve favourably; maintaining positive growth dynamics in all geographies. Sales in this segment reached 148 million euros over the first six months, which represent 21.4% of the company's total revenue. By region, New Products reported sales in Latin America of €100 million, reaching 22.3% of the region's revenues. In Europe, turnover decreased by 18% to €39 million due to the divestment of AVOS; maintaining a relative weight of 20.5% of total turnover. In Asia-Pacific, New Products doubled in weight; reaching 17.4% of sales at €9 million.
The second quarter of 2021 saw the completion by Prosegur Cash of the acquisition of Redpagos in Uruguay, which had a turnover of €55 million in 2020 and is a leader in the correspondent banking segment. This transaction added to the business of Prosegur Cash in the region, resulting in advances in the transformation of its services.
In addition, Prosegur Cash announced the creation of a joint venture last May with Euronet for the provision of comprehensive services to ATMs in Latin America. The objective of this association was to own, promote and manage independent ATM networks and provide services to outsourced ATMs of financial institutions.