Q3 2024 Prosegur Compania de Seguridad SA Earnings Call Transcript
Key Points
- Prosegur Compania De Seguridad SA (STU:PRHA) reported a 6.4% year-over-year increase in total annual sales, reaching EUR3.6 billion, with growth being purely organic across all geographies.
- The security business marked a 20% increase year-over-year, with EBITA margins reaching 3.2% during the third quarter, driven by enhanced operating efficiencies.
- The company generated EUR143 million in operating cash flow, with a significant contribution from efficient working capital management.
- Prosegur's alarm business showed solid results, with service margins increasing by 9% and 10% in Prosegur alarms and MPA respectively, contributing to a 14% increase in recurring cash flow.
- The company's leverage position improved, with a net debt to EBITA ratio decreasing from 2.8 times to 2.6 times, driven by higher EBITA generation.
- The cash business was negatively impacted by the real depreciation of the Argentine Peso and the Brazilian Real, affecting profitability.
- Restructuring costs in the Australian operation and additional setup costs in the forex business negatively impacted EBITA and EBITA margins.
- The financial results were adversely affected by hyperinflation effects, particularly in Argentina, leading to a negative impact of EUR23.9 million.
- Despite improvements, the net financial debt in absolute terms is expected to remain slightly above the previous year's figure.
- Acquisition costs in the alarm business showed a flat evolution compared to a 7% decline in the first half of the year, with seasonality affecting quarterly costs.
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Good afternoon and welcome to Prosegur third quarter, 2024 results presentation, webcast. Before we start, I would like to remind you that this presentation has been prerecorded and that it will be available on our corporate website. I will now hand you over to our CFO Maite RodrÃguez.
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Good afternoon and thank you all for your presence. We are excited to present Prosegur results for the nine months of 2024. As we shall see throughout the presentation, we continue to outperform in our main businesses validating our growth strategy. We are thus optimistic to fully comply with the financial targets set for the fiscal year when it comes to EBITA and cash flow generation.
Let's now deep dive into the most significant milestones of the period during the first nine months
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