07 NOV 2017

Prosegur Cash reported a net profit of eur 170 million from its business activity in the first nine months of 2017

The company's consolidated net profit, including the impact from the corporate transactions it carried out in the process of becoming listed on the stock exchange, amounted to EUR 246 million.

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Madrid, 7 November 2017.– Prosegur Cash reports a net profit of EUR 170 million from its business activity in the first nine months of 2017. This figure represents an increase of 37% compared to the same period a year earlier. These results do not include the impact from corporate transactions performed outside of the company's main business activity and which were part of the process of becoming listed on the stock exchange during the first quarter of the year, according to the Leaflet about the operation. Taking these transactions into account, consolidated net profit for the period amounted to EUR 246 million.
 

An excellent year in terms of growth and new product development

Prosegur Cash sales during the first nine months of 2017 amounted to EUR 1,436 million, up 16.5% compared to the same period in 2016. This increase is essentially due to organic growth of almost 15%, supported by non-recurring revenue from some markets and a practically non-existent currency effect during these three quarters.

With regard to the development of new services at Prosegur Cash, the positive trend has continued. Sales of new products reached EUR 121 million, up 51.1%. Moreover, the weighting of the new products in the sales mix during the first nine months of 2017 amounted to 8.4% of the total, compared to 6.5% during the same period a year earlier. This strong performance is still mainly due to the automation of cash management at the point of sale, international transport, ATM management and added-value outsourcing services.

It was precisely with the aim of strengthening added-value outsourcing services unit that the company recently announced its acquisition of Contesta in Spain, a BPO (Business Process Outsourcing) company specializing in front office customer service. Prosegur's BPO business unit now has more than 1,200 employees and is moving ahead in its business strategy to devise processes that are increasingly more integrated, supported by multi-channel technological platforms.

As for sales revenue per regions, Prosegur Cash reported sales of EUR 1,012 million in Latin America, up 22.8% on the same period a year earlier. European sales amounted to EUR 346 million, with an organic growth of 0.9%, in line with the rest of the year. Finally, in the AOA region (Asia, Oceania and Africa) the company achieved sales of EUR 77 million, up 17.3%, owing largely to acquisitions carried out.

Prosegur Cash improved its profitability in absolute and relative terms

In terms of the profitability of the Prosegur Cash business, the company reported EBITDA from its main business activity of EUR 305 million, 20% higher than the figure for the same period a year earlier. Operating profit (EBIT) - also attributable to its main business activity – rose by 22% to EUR 255 million. Most impressive was the growth in profitability seen in the period, even without the favourable impact from the exchange rate it enjoyed in the first half.

EBIT margin in the first nine months show the strength of the Prosegur Cash business model despite the non-recurring business that occurred during the first half of the year, the higher commercial costs, M&A integration and other optimization measures implemented during the period.

Without discounting the corporate transactions mentioned earlier, EBITDA and EBIT would have amounted to EUR 390 million and EUR 340 million, respectively.
 

Financial discipline and the cash flow evolution

In regard to the cash flow performance, the acquisitions of property, plant and equipment amounted to EUR 71 million, reflecting the investments in security made at the start of the year. Similarly, Prosegur Cash persevered in its commitment to making continuous improvements of working capital levels, remained under control and in line with the normal seasonal business cycle . As a result, the company activities generated EUR 138 million for the period.

Regarding its financial position, debt levels have been reduced by 33% since the start of the year, leaving net debt at EUR 434 million. Consequently, the leverage is placed in a level of 1.0 times EBITDA, well below the limit of 2.5 times EBITDA marked by the company. A reflection of this was the confirmation by Standard & Poor's of the company’s BBB investment grade rating and Stable outlook, issued last September.

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