Madrid, 28 February, 2018. Prosegur Cash has its first year as a listed company reporting a net consolidated profit of EUR 236 million from its business activity in 2017. This figure represents an increase of 28.2% compared to the same period a year earlier. These figures exclude the corporate operations performed within the process of becoming listed on the stock exchange, as detailed in the Prospectus of the operation. Taking these transactions into account, consolidated net profit for the period amounted to EUR 305 million.
Double-digit sales increase supported by organic growth
Prosegur Cash sales in 2017 reached EUR 1,924 million, an 11.6% more than in 2016. In organic terms and excluding the FX effect, the increase in sales has been of 12.7%.
By geographies, Prosegur Cash increased its sales in LatAm by 15.4% to EUR 1,360 million, 71% of total sales. The region contributed an organic growth of 18.8%, which was affected by the devaluation of currencies in the second half of the year and, more sharply, in the last quarter of 2017. Europe contributed 24% of the total turnover with sales of EUR 465 million, which represents an increase of 2% over the previous year. Finally, the AOA region (Asia, Oceania and Africa) contributed 5% of the company's sales with EUR 99 million, 9% more than in 2016, highlighting the contribution of the M&A.
Strong growth rate of new products
Sales of new services have maintained their strong growth rate to reach EUR 167 million, almost 50% more than in 2016, representing 8.7% of total sales compared to 6.4% in 2016. In LatAm, the new services have grown by 51% to EUR 103 million, driven especially by the cash automation in retail, added value outsourcing services and international transport. The new services are also growing strongly in the regions of Europe and AOA, highlighting the acquisitions of Contesta in Spain and CSA in Australia, companies providing BPO (Business Process Outsourcing) specialized services.
Improvement of profitability in absolute and relative terms
EBITDA attributable to Prosegur Cash activity in 2017was EUR 428 million, 12% more than the same period of the previous year. The operating profit (EBIT) -also attributable to its activity- obtained a positive growth of 12.4% to reach EUR 360 million. The EBIT margin obtained an improvement of 14 basis points compared to 2016 to 18.7%. All this considering the turn of trend of the currency exchange rate against the Euro in the second half of the year, the integration costs of the M&A and other optimization measures implemented during the final part of the year. EBITDA and EBIT, without discounting the corporate transactions contemplated within the company's IPO process, have reached EUR 513 and EUR 445 million, respectively.
By geographical regions, LatAm has reported an EBIT of EUR 323 million euros, sustaining the expansion of margins to 23.8%. Europe reached EUR 41 million, 10% less than in 2016, with an EBIT margin of 8.8%, these figures have been affected by France despite the good performance in the rest of the countries of the region. Finally, the activity in India and South Africa has positive improve in AOA, while the overall result has been affected by the loss of a contract in Australia at the end of the year. Since then, business activity in the country has recovered to a large extent, although the region has presented a negative operating result in 2017.
Strong rate of cash generation and financial discipline
Regarding the evolution of cash flow, in addition to good sales performance and profitability, Prosegur Cash has continued to keep working capital under control. Thus, in 2017 it generated EUR 197 million, which has been used to cover the costs of debt, finance growth and dividend payments, dedicating the remaining to reducing its net debt.
Prosegur Cash reduced its debt during the year by EUR 212 million, bringing the net financial debt, including treasury stock, at EUR 431 million. The company thus maintains a comfortable level of 1-time net debt over EBITDA, well below the internal covenant of 2.5 times. It should also be noted that following the issue in December 2017 of a bond amounting to EUR 600 million and maturing in 2026, the company has secured an attractive long-term fixed rate and diversified its financial sources.
Priorities: Agility, Consolidation, Transformation
In order to face 2018 and the following years, Prosegur Cash has identified three priority areas for action. The first is the organization’s agility and efficiency, aimed at maintaining organic growth above the markets in which it operates in constant currency. Second, to play a leading role in the industry global consolidation, both in existing markets and in new markets with the aim of generating synergies and fostering growth. And, third, the transformation towards new products, in or der to catch the third wave of outsourcing and added value services.