Edenred: FY 2013 results: FX impacts as anticipated. Growth target confirmed
NEUTRAL, Fair Value EUR25 (+15%)
As announced, the results were largely impacted by currencies. After an Issue Volume which was up 2.8% on reported at EUR17.1bn with organic of 11.8% before a 12.1% negative currency effect, the EBIT reached EUR343m, down 6.4% after the 18.2% negative impact from currencies, i.e. a total of EUR67m. The EBIT is in line with group guidance of between EUR340m-EUR350m. Nevertheless, the business model generated strong cash flow with FFO of EUR262m (our estimate was EUR239m) down EUR20m vs. last year and up 11.5% on lfl which is in line with the group target of over 10%. Medium-term confidence has been confirmed with lfl IV growth of between 8% to 14% and over 10% for FFO. Management will recommend a dividend of EUR0.83 per share, representing a P/O of 96% vs. 89% last year (EUR0.82).Positive impact anticipated.
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