(News Bulletin 247) – The specialist in prepaid service titles will get ahead of its recurring gross operating margin objective. The company also indicated that a potential regulatory change in Italy would not have an impact on its medium-term forecasts.

Pluxee recorded a nice increase on the Paris Stock Exchange this Thursday. Sodexo’s former employee benefits division raised its outlook for fiscal years 2025 and 2026 on Thursday, citing “strong” financial performance in 2024 and expressing confidence in the market’s structural growth trends.

The stock jumped 20.3% to 19.03 euros around 5:10 p.m. The group, listed on the stock market in February 2024, says it expects an increase in the recurring Ebitda (gross operating profit) margin of 75 basis points in 2025 and 2026, allowing the achievement of the objective initial of an organic increase of 250 basis points over three years one year in advance.

Pluxee also says it expects a recurring cash conversion rate above 75% on average over the years 2024 to 2026, compared to more than 70% previously. The company also confirmed that it aims to achieve “double-digit” organic growth for the financial years ending in 2025 and 2026.

A limited Italian risk

“At the start of the 2025 financial year, I am convinced that Pluxee is well positioned to achieve its objectives by continuing to generate sustainable double-digit growth, further margin improvements and strong cash generation,” said Aurélien Sonet, CEO of Pluxee, in a press release.

The number of contracts signed in 2024 reached a record of 1.6 billion euros, also reported the general director of Pluxee, Aurélien Sonet, during a conference call with journalists.

“This highlights both the commercial momentum and the dynamism of our commercial engine,” he said.

Aurélien Sonet also clarified that a possible modification of the regulatory framework in Italy aimed at capping commissions on meal vouchers at 5% would not have an impact on Pluxee’s medium-term forecasts.

“This is a consistent and reassuring publication on cash generation and outlook, as regulatory changes in Italy are not significant for the group,” Oddo BHF analysts wrote in a note, recalling that the stock has fallen sharply in recent months after a disappointing third quarter and concerns about regulatory risk in the sector.

The company published an Ebitda margin of 35.6% for fiscal year 2024, slightly higher than the 35.3% expected according to the consensus provided by the group.

(With Reuters)