Press Room
Prosegur Cash increases net profit by 4.5% to €39 million
The company recorded a turnover of €998 million in the first half of 2024, up 1.9% on the same period for the previous year, with significant organic growth in all regions
- The company recorded a turnover of €998 million in the first half of 2024, up 1.9% on the same period for the previous year, with significant organic growth in all regions.
- Sales of transformation products reached €318 million in the first half of 2024, representing 31.8% of total sales, exceeding €600 million for the first time in the last 12 months, demonstrating the company's ability to adapt its business model and offer innovative solutions.
- Profitability improved quarter-on-quarter, with an increase of 120 basis points in EBITA margin, as well as cash generation, with free cash flow of €28 million in the quarter.
Madrid, July 26th, 2023.- Prosegur Cash today announced its results for the first half of 2024, highlighting a solid performance in all its business areas and regions. The company's net income has experienced outstanding growth, reaching €39 million during the first half of 2024, an increase of 4.5% compared to the same period last year.
In 1H2024, Prosegur Cash recorded a total turnover of €998 million, up 1.9% compared to 1H2023. This growth was driven by outstanding organic performance in all the regions where the company operates, leading to a robust 5.1% recovery in second quarter sales, reflecting the company's solid position in the market. Regarding Prosegur Cash's EBITA in the first half of 2024, it reached €113 million, with a margin of 11.3%, which represents a quarter-on-quarter improvement of 120 basis points despite the adverse effect of exchange rates.
Outstanding performance of transformation products
Transformation products have played a key role in Prosegur Cash's growth strategy, reaching a record €318 million and already representing 31.8% of the company's total sales in the first half of 2024 (up 11.7% compared to the same period in 2023). Specifically, the company's main transformation solutions experienced double-digit growth, including Cash Today, a cash digitization solution, as well as its foreign exchange business, Forex, which recently expanded to Singapore and New Zealand. For the first time, sales of transformation products have reached €600 million in the last 12 months, demonstrating consumer approval of Prosegur Cash’s transformation strategies.
Growing cash flow and strong financial position
In the second quarter of 2024, Prosegur Cash generated a free cash flow of €28 million, accelerating cash generation quarter on quarter. Regarding net debt, the leverage ratio has slightly increased temporarily to 2.9 times net debt over EBITDA, due to both the beginning of the consolidation of the net debt in India and financing growth, closing the half year with a net debt of €926 million.
Strong activity by region
Latin America continues to contribute most of the group's sales, accounting for 62% of total revenues, reaching €619 million in the first half of the year. Transformation products increased to 33.2% of total sales, registering growth of 10% and an increase in penetration of 310 basis points compared with the first half of 2023.
Europe accounted for 32% of total sales. Sales rose by 12% to €321 million, with resilient organic growth of 9.4%. Transformation products performed particularly well, with double-digit growth of 24.9% and a penetration increase of 320 basis points.
Finally, in the Asia-Pacific region, which represents 6% of total sales, sales fell by 21% during the first half due to the deconsolidation of the Australian business from September 2023, partly mitigated by the global consolidation of the Indian business from April 2024. Meanwhile, double-digit organic growth of 11% reflects the good health of the business in the region.
Milestones: Promissory note program and transformation products
Among the milestones achieved during the first six months of the year, Prosegur Cash has continued to provide solutions to strengthen its balance sheet. The company has registered a promissory note program in the AIAF Fixed Income Market, called the Prosegur Cash 2024 AIAF Promissory Note Program, with a maximum balance of up to €400 million, which will be used to complement the traditional financing channels of recent years. The operation aims to diversify financing sources and reduce any possible risk that may arise in the market, thus strengthening the company's liquidity.
In addition, transformation products continue to make very positive progress. Prosegur Change, Prosegur Cash’s foreign exchange subsidiary, has begun offering currency trading services at Singapore’s Changi International Airport—ranked Asia’s best in 2023, with an average of more than 68 million passengers per year—as well as at Wellington International Airport, New Zealand’s second-busiest.