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EdenRed’s Q3 FY23 trading update was slightly ahead of the street and our expectations. Operating revenue saw robust growth backed by double-digit progressions across all the regions. Consequently, the management tightened the full year EBITDA guidance to the upper half of the €1.02-1.09bn range. Nevertheless, the share price remained under pressure (-4.47% at the time of writing) due to the uncertainty regarding the regulatory environment in France. We will slightly increase our estimates, but
Companies: Edenred (EDEN:EPA)Edenred SA (EDEN:PAR)
AlphaValue
EdenRed’s share price came under pressure yesterday (closed -11%), after the French Small and Medium Enterprise (SME) minister announced the possibility of capping the commission paid by restaurants to meal voucher providers. While it is not a good news for EdenRed, which sources c.16% of its revenue from France, the share price reaction could be overdone as the cap represents a low-mid single-digit headwind to the group’s top line. We retain our cautious stance.
EdenRed reported H1 2023 results slightly ahead of the consensus and our estimates on sales and profitability. H1 operating revenue increased by 20% on a LFL basis, while other revenue doubled on the back of higher interest rates. However, the unimpressive EBITDA guidance, coupled with higher interest expenses in H2 given the increase in debt to fund the Reward Gateway acquisition, has weighed on investor sentiment (share price down -2.26% at the time of writing). We maintain our cautious view o
EdenRed announced the acquisition of Reward Gateway, a leading employee engagement platform provider, for £1.15bn (or €1.3bn). The deal is in line with the management’s Beyond Food strategy, and is expected to enhance the group’s employee engagement solutions portfolio, while also providing access to new geographies. It is an all cash deal and, hence, is EPS accretive from 2024. Overall, a positive development from a strategy perceptive.
EdenRed reported better-than-expected Q1 2023 sales figures. Operating revenue continued to benefit from the increased face value of vouchers underpinned by the inflationary environment, while higher interest led to a tripling of revenue earned on the invested float. The decrease in fuel prices however impacted the Fleet & Mobility segment. The management reiterated the targets for FY23. We will increase our estimates but are likely to maintain our cautious stance on the stock.
Edenred ended FY22 with a strong operational performance, but weak net income due to higher financial expenses. For FY23, management confirmed the strategic targets, which are largely in line with consensus. No wonder the share price reaction remained muted (+0.7% at the time of writing). We will increase our estimates to incorporate the strong FY22 results, but are likely to maintain our cautious view on the stock.
EdenRed reported Q3 FY22 revenue ahead of the street and our own expectations. Operating revenue increased 19.1% yoy on lfl basis, underpinned by strong momentum across businesses and geographies. The group continues to benefit from favorable economic conditions wherein inflation and increased interest rates continue to drive growth in employee benefit solutions and other revenue, respectively. We will revise upwards our estimates, but retain our cautious stock recommendation.
EdenRed reported a strong H1 22 performance, delivering a headline beat on Q2 and H1 22 figures. Lfl revenue growth benefited from inflation tailwinds and expansion in market share underpinned by digital offerings. The H1 profitability margin improved with management raising the EBITDA growth guidance. We will increase our estimates slightly but remain cautious on the stock.
EdenRed announced better-than-expected Q1 results with total revenue coming in slightly ahead of the street expectations. LFL sales increased 15.3% yoy, ahead of the 12.45% consensus estimate, as the group benefitted from a favorable macroeconomic environment with inflation and increasing fuel prices along with continued adoption of its new and existing products. Overall, a strong update. We have revised our estimates slightly upwards, but retain our cautious stock recommendation.
Edenred’s FY21 sales and net profit were in line with consensus and our expectations. However, the FCF was a beat, driven by a strong Q4 performance that led to an increase in the float, despite the higher use of benefits by employees in 2021 vs 2020. The EBITDA margin returned to the pre-pandemic level, prompting management to reiterate its objectives set in the “Next Frontier” 2019-22 plan. Overall, the results were strong and we maintain our positive stance on the stock.
Edenred reported its Q3 FY2021 sales update, slightly ahead of market expectations. Operating revenue grew c.13% yoy underpinned by a recovery in business activity, and the rollout of new and existing solutions. Backed by the strong sales performance in 9M FY2021 to date, management upgraded its EBITDA guidance for the year. Overall, a strong update. We will revise upwards our estimates and target price, but retain our cautious stock recommendation.
Research Tree provides access to ongoing research coverage, media content and regulatory news on Edenred SA. We currently have 34 research reports from 4 professional analysts.
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Canaccord Genuity
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The focus of Hardman & Co Research is on the nine quoted Infrastructure Investment Companies (IICs) and on the 22 Renewable Energy Infrastructure Funds (REIFs): the stocks analysed are all members of the Association of Investment Companies (AIC). We are updating our publication of January 2023, assessing both the lacklustre share price performances during 2023 and the key issues, including interest rates, inflation and power prices. As a 31-strong group, its combined market capitalisation is no
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Hardman & Co
Edison Investment Research is terminating coverage on ABC Arbitrage (ABCA), paragon (PGN), Foresight Solar Fund (FSFL), Kendrion (KENDR), Lithium Power International (LPI), Triple Point Energy Transition (TENT), 4iG (4IG), e-therapeutics (ETX), Pharnext (ALPHA) and Shield Therapeutics (STX). Please note you should no longer rely on any previous research or estimates for this company. All forecasts should now be considered redundant. Previously published reports can still be accessed via our web
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Hybridan
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In a challenging market, Regional REIT’s (RGL’s) FY23 operational and financial performance was robust, in line with expectations and previous guidance. Investor focus remains on the company’s loan to value (LTV) reduction and bond refinancing plans, explored in detail in our previous note and RGL will provide an update on this in due course.
Companies: Regional REIT Ltd.
Foxtons Group plc first quarter revenue rose 9% to £35.7m (1Q23: £32.9m) with growth delivered across all business segments. Trading is in line with management's expectations.
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Zeus Capital
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Kepler | Trust Intelligence
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