Pluxee delivers strong growth in Q3 and upgrades Fiscal 2024 organic revenue growth objective

Pluxee delivers strong growth in Q3 and upgrades Fiscal 2024 organic revenue growth objective

Fiscal Q3 2024 highlights

• +17.9% organic revenue growth, reflecting double digit growth in both Operating and Float revenue
• Continued business momentum fuelled by disciplined execution and sustained market trends
• Strong performance driven by Latin America (+16.1%) and Rest of the world (+42.4%)
• +22.7% organic growth in Employee Benefits revenue
• First key M&A milestones delivered: signature of an agreement to acquire Cobee in Spain and closing of the strategic partnership with Santander in Brazil
• Fiscal 2024 organic revenue growth objective upgraded to circa +18%
  Fiscal 2024 Recurring EBITDA margin and mid-term financial objectives reiterated

Fiscal Q3 2024 key figures

(in million euros)	Fiscal Q3 2024	Fiscal Q3 2023	Organic growth (%)	Total growth (%)
Operating revenue	257	235	+11.4%	+9.1%
Float revenue	40	26	+75.9%	+56.7%
Total Revenues	297	261	+17.9%	+13.8%
of which:
Continental Europe	123	114	+8.1%	+7.8%
Latin America	116	98	+16.1%	+17.8%
Rest of the world	58	48	+42.4%	+19.6%
of which:
Employee benefits	257	219	+22.7%	+17.6%
Other products & services	40	42	-7.0%	-6.2%

Aurélien Sonet, Chief Executive Officer of Pluxee, commented:

“Pluxee continues to demonstrate strong business momentum with high double-digit organic revenue growth in the third quarter. As a result, we are pleased to be upgrading for the second time our Fiscal 2024 Organic revenue growth objective. This momentum is further amplified by the recent agreement to acquire Cobee, an innovative Spanish digital player in Employee benefits, in line with Pluxee’s targeted and disciplined M&A strategy. We have also completed the strategic partnership with Santander, enabling Pluxee to access over 1.4 million B2B clients from Santander throughout Brazil, and will now accelerate on integration. These achievements further reinforce our confidence in our ability to meet both our near- and medium-term strategic and financial objectives.”

Business update

Total Business volumes issued reached €18.3 billion over the first nine months of Fiscal 2024, including €13.8 billion in Employee benefits of which €4.6 billion in the third quarter Fiscal 2024.
It represents +11.6% organic growth over the first nine months and +10.0% in the third quarter Fiscal 2024 in Employee benefits business volumes.

This growth reflects the strong business momentum experienced by the Group, driven by higher net retention, including a further significant increase in average face value, as well as robust business development fuelled by continuing new client gains.

Fiscal Q3 2024 revenue performance

Total Revenues reached €297 million in the third quarter of Fiscal 2024, growing +17.9% organically compared to Fiscal Q3 2023, partly offset by a -4.1% currency translation effect mainly due to hyperinflation in Türkiye. Total Revenues amounted to €889 million over the first nine months of Fiscal 2024, showing a +21.8% organic growth. It reflects Pluxee’s strong positive business momentum fuelled by a disciplined execution and sustained market trends.

Total Revenues by nature

(in million euros)	Fiscal Q3 2024	Fiscal Q3 2023	Organic growth (%)	Total growth (%)
Operating revenue	257	235	+11.4%	+9.1%
Float revenue	40	26	+75.9%	+56.7%
Total Revenues	297	261	+17.9%	+13.8%

(in million euros)	First 9 months Fiscal 2024	First 9 months Fiscal 2023	Organic growth (%)	Total growth (%)
Operating revenue	774	683	+15.4%	+13.4%
Float revenue	115	66	+88.8%	+74.3%
Total Revenues	889	749	+21.8%	+18.8%

Operating revenue reached €257 million in the third quarter of Fiscal 2024, representing +9.1% total growth including -2.4% currency translation effects. As expected, operating revenue organic growth in the third quarter softened to +11.4%. The strong business trajectory was partially balanced by higher comparison basis.

Float revenue rose to €40 million in the third quarter of Fiscal 2024, increasing +75.9% organically compared to the same period the previous year. The increase was driven by the continuous dynamic in business volumes issued expanding the Float base year-on-year, coupled with the stabilization of interest rates at a high level overall.

Operating revenue by regions

(in million euros)	Fiscal Q3 2024	Fiscal Q3 2023	Organic growth (%)	Total growth (%)
Continental Europe	108	102	+5.3%	+5.0%
Latin America	102	90	+11.4%	+13.1%
Rest of the world	47	42	+25.3%	+10.4%
Operating revenue	257	235	+11.4%	+9.1%

(in million euros)	First 9 months Fiscal 2024	First 9 months Fiscal 2023	Organic growth (%)	Total growth (%)
Continental Europe	341	307	+11.1%	+11.0%
Latin America	302	251	+17.9%	+20.2%
Rest of the world	132	125	+20.9%	+5.9%
Operating revenue	774	683	+15.4%	+13.4%

• In Continental Europe, operating revenue reached €108 million in the third quarter of Fiscal 2024, representing +5.3% organic growth over the period. Positive business trend, especially in Meal & Food in Belgium, France and Spain, was partially offset by high comparison basis, notably in Eastern and Central Europe.
• In Latin America, operating revenue reached €102 million in the third quarter of Fiscal 2024, growing +11.4% organically. Double digit growth was delivered by almost all countries including Brazil and Mexico, despite the more challenging comparison levels.
• In Rest of the world, operating revenue has increased substantially up to €47 million in the third quarter of Fiscal 2024, showing a +25.3% organic growth. This results from the good performance delivered across the region, especially in Türkiye, India and Israel.

Operating revenue by lines of services

(in million euros)	Fiscal Q3 2024	Fiscal Q3 2023	Organic growth (%)	Total growth (%)
Employee benefits	220	196	+15.0%	+11.9%
Other products & services	37	39	-6.5%	-5.2%
Operating revenue	257	235	+11.4%	+9.1%
(in million euros)	First 9 months Fiscal 2024	First 9 months Fiscal 2023	Organic growth (%)	Total growth (%)
Employee benefits	651	560	+18.5%	+16.1%
Other products & services	124	122	+0.8%	+1.1%
Operating revenue	774	683	+15.4%	+13.4%

• Employee Benefits generated operating revenue of €220 million in the third quarter of Fiscal 2024, growing +15.0% organically, driven by sustained growth in business volumes as a result of high client net retention including incremental increase in face values coupled with significant new client wins. Positive business momentum was reinforced by an elevated take-up rate.
• Other products & services generated operating revenue of €37 million in the third quarter of Fiscal 2024, decreasing -6.5% organically compared to Fiscal Q3 2023. Revenue growth in Engagement solutions was offset by the discontinuation of a Public benefit contract in Latin America.

M&A strategy execution

On June 12, 2024, Pluxee announced an agreement to acquire 100% of Cobee, a fast-growing digital Spanish employee benefits player that has expanded its presence to Portugal and Mexico. With this acquisition, Pluxee will strongly reinforce its leadership position in the Spanish market while enhancing its existing offering and tech capabilities at global scale. The transaction is subject to approval by Spanish regulatory authorities.

Cobee serves more than 1,500 clients and 100,000 employee consumers with a broad multi-benefit offering, which includes over 12 distinct products. With over 330,000 employee consumers, Pluxee is a leading player in the Spanish employee benefits and engagement market. The combination of Pluxee’s and Cobee’s talents and tech assets will enable the roll-out of the most comprehensive and attractive multi-benefits solution on the Spanish market.

Cobee is expected to deliver +100% year-on-year organic growth in Fiscal 2024. The transaction should be neutral on Pluxee Recurring EBITDA and Free cash flow in Fiscal 2025 and accretive to Recurring EBITDA margin and Net income from Fiscal 2026, with rapid margin improvement fuelled by strong revenue growth and operational synergies. The transaction will be fully funded from existing financial resources, with limited impact on leverage.

On July 3, 2024, Pluxee announced the completion of its strategic partnership with Santander, one of Brazil’s largest private banks. Thanks to this 25-year exclusive distribution agreement, Pluxee will accelerate growth in Meal & Food benefits and reinforce its market leadership in Brazil, especially among SMEs.

Since the approval of the Brazilian authorities, the integration of Santander’s employee benefits activity and the distribution of Pluxee’s solutions in the Santander network, has rapidly ramped up. The Group will leverage 4,000 Santander sales managers, of which 2,500 are dedicated to SMEs, providing access to more than 1.4 million Santander clients throughout Brazil.

As part of this partnership, Santander now retains 20% ownership of Pluxee Brazil while the Group maintains an 80% controlling interest in the combined business. The transaction will positively contribute to Organic growth and Recurring EBITDA margin from Fiscal 2025.

Outlook