27 JUL 2017

Prosegur Cash reported a net profit attributable to its activity of eur 119 million in the first half of 2017

Consolidated net profit, including the impact of corporate operations between Prosegur Compañía de Seguridad and Prosegur Cash, totalled EUR 194 million.

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Prosegur Cash reported a net profit attributable to its activity of eur 119 million in the first half of 2017

Madrid, 27th July 2017. Prosegur Cash reported a net profit attributable to its activity of EUR 119 million in the first half of 2017. This figure represents growth of 39% versus the same period the previous year. As reported in the first quarter, these results exclude the impact of corporate activities unrelated to the company’s operations as it was detailed in the Prospectus of Prosegur Cash IPO. Including these transactions, consolidated net profit during the period totalled EUR 194 million.

Intense organic growth in sales, with greater emphasis on new services

Prosegur Cash’s H1 2017 sales totalled EUR 964 million, up 22% over the same period in 2016. This increase is largely due to solid organic growth of over 16%. The currency effect and, to a lesser extent, merger and acquisition activity, also contributed positively.

As in the first quarter, Prosegur Cash’s new services have maintained a positive trend. In the first half of 2016 they represented 6.5% of total sales, rising to 8.2% in the current period. In the first six months of the year, sales of new products totalled EUR 79 million, reporting growth of 55% over the same period the previous year. This positive performance is supported by point-of-sale cash automation services, international transport, ATM management and the added value outsourcing services (AVOS). It’s remarkable that these services are seeing particularly positive acceptance in the Latin American markets.

By region, Prosegur Cash reported sales of EUR 686 million in Latin America, EUR 226 million in Europe and EUR 53 million in AOA (Asia, Oceania and Africa).

Expansion of Prosegur Cash margins

Concerning Prosegur Cash’s business profitability, EBITDA attributable to its activity totalled EUR 205 million, up 28%. EBIT, also attributable to its activity, amounted positive growth, of 31%, to a total of EUR 172 million, reflecting a margin expansion that increased from 16.6% during the same period the previous period, to 17.8% in the first six months of 2017. EBITDA and EBIT, without
 


deducting the operations between Prosegur Compañía de Seguridad and Prosegur Cash, would have reached EUR 290 and 257 million respectively.

Prosegur Cash’s profitability parameters continued to improve, in both absolute and relative terms. This positive trend is due largely to the company’s operational excellence, which has benefitted by volume increases, reflecting Prosegur Cash’s business model strength.

Strong generation of cash and debt reduction

Regarding free cash flow, Prosegur Cash’s activities during the period generated EUR 92 million. The company is maintaining its commitment to continuously improve its working capital and will continue to apply and strengthen measures focusing on cash generation. Acquisitions of fixed assets totalled 48 million, reflecting investments to improve security initiated the previous period.

As for its financial situation, the company reduced its debt by EUR 205 million some 32% since the start of the period, as a result the net financial debt reaches EUR 438 million. Tthe leverage is placed in a level of 1.0 times EBITDA, well below the limit of 2.5 times EBITDA marked by the company and consistent with the investment grade rating (BBB) awarded by Standard & Poor’s, affording financial capacity to address its growth strategy.

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Pablo de Santiago
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