By Mathias de Rozario and Jakob Van Calster
(Reuters) -French voucher and benefits company Pluxee posted 12.1% organic growth in its first-quarter operating revenue on Wednesday, beating market expectations, aided by sound customer retention and new client acquisitions in its main business.
Its operating revenue was 249 million euros ($257.8 million) in the three months through Nov. 30, above analysts’ average forecast of 244 million euros in a company-provided consensus.
The double-digit organic growth was driven by a strong performance in Employee Benefits, Pluxee’s biggest unit that saw 10.4% growth in the period, CEO Aurélien Sonet said in a press release.
Given the challenging economic environment in Continental Europe, Pluxee’s main market, the France-based group expects its organic growth to be more geared towards South and Central America and the rest of the world in the coming quarters.
The former benefits unit of Sodexo (EPA:EXHO) confirmed its outlook for the 2025 financial year.
Pluxee continued to strengthen its presence in Latin America which recorded 11.1% organic revenue growth and accounted for nearly 40% of the group’s total operating revenue in the first quarter.
The recent acquisition of Benefício Fácil, which provides commuter benefits in Brazil, is expected to be completed during the second half of the fiscal year and to be accretive on the recurring core profit margin from the first year, the group said.
Pluxee added the continued deployment of its partnership with Santander (BME:SAN) in Brazil also boosted the results, with around 90% of the business volume migration now completed.
The Latin America region was however still impacted by the loss of a student benefits contract in Chile and a negative 14.5% currency impact mainly related to Brazil and Mexico, it said.
($1 = 0.9657 euros)