Prosegur reports sales of 947 million euros -similar to pre-pandemic levels- and a consolidated net profit of 11 million euros

Madrid, 12 May 2022. Prosegur reported sales of 947 million euros in the first three months of 2022, a figure that is up 17.9% year-on-year. The company has posted strong organic growth, especially in the last month of the quarter, across all geographies and business lines. Sales have been enhanced by a more favourable macroeconomic environment and stable exchange rates.

Regarding the profitability of operations, the EBITA stands at 60 million euros, an improvement of 19.1%. While the EBITA margin has remained stable at 6.3%. Prosegur is registering a trend of gradual improvement in margins across all its business units, although Prosegur Security continues to be affected by non-productivity, the expiry of subsidies and marketing efforts in the United States. Furthermore, profitability was affected by seasonality in the first quarter of the year, accentuated by inflation. Therefore, consolidated net income, less minority interests, was 11 million euros, down 36.7%.

Net financial debt at the close of the first quarter amounted to 1,089 million euros, with an average cost of 1.33%. Level of indebtedness remains stable with a net financial debt to EBITDA ratio of 2.4. The maturity of the corporate debt has been extended after the issuance of ordinary bonds, on 6 April, to the amount of 500 million euros.

Looking at business line development:

Prosegur Security

Prosegur Security, the manned guarding and technology business, reported sales of 469 million euros in the first quarter of 2022, which represents a growth in revenue of 15.5%. These figures show the general recovery of sales in all geographies, especially in mature markets. In the case of the United States, growth is above 50%. Sales of technology-based security solutions are also advancing rapidly.

Prosegur Security's margins continue to be affected by non-productivity resulting from the heavy incidence of the Omicron variant, still present in the first two months of the year, in addition to US aid programmes coming to an end. The EBITA amounts to 7 million euros, down 50.5%, with an EBITA margin of 1.5%. Although the recurring EBITA (separating the aid programmes) is up 11%.

Prosegur Cash

Prosegur Cash has reported sales of 411 million euros in the first three months of 2022, up 18.8% over the same period last year. For several quarters, the company has maintained a upward trend in revenue performance across all geographies, thanks to an increase in the volumes of cash transported - favoured by the inflationary situation - and an almost neutral impact in terms of currencies.

New Products business increased 24.3% compared to the first quarter of last year. This figure rises to 57.1% if we exclude divestment. New Products have reported sales of 95 million euros in the first three months of 2022 and already represent 23.1% of total revenue. In general, the contribution of this unit has been firm, with very positive dynamics in all geographies.

Margins have also performed favourably. The Prosegur Cash EBITA for the quarter amounted to 55 million euros, up 0.5% with a margin of 13.3%. However, it should be noted that the underlying EBITA, which excludes capital gains from divestments, increased 60.2% and shows a positive increase in the margin of 3.4 percentage points, reflecting the impact of the operating leverage and the efficiency measures adopted.

Prosegur Alarms

The alarms business closed the first quarter of the year with 724,000 total connections, 374,000 of which correspond to Movistar Prosegur Alarms and 350,000 to Prosegur Alarms, which covers all operations outside Spain. Movistar Prosegur Alarms has therefore maintained its strong growth rate with an increase of 48.8% compared to the first quarter of 2021.

Prosegur Alarms has recorded sales of 43 million euros, with positive organic growth of 17.6%, affected essentially by the de-consolidation of Spain.

Prosegur AVOS

Prosegur AVOS, the business line specialising in outsourcing processes and digital transformation for the financial and insurance sectors, has reported growth of 30.6% to 21 million euros in the first quarter of 2022. Highlighting the progress of the technology area, AVOS Tech, whose sales already represent close to 30% of revenue, compared to 20% in the first quarter of 2021.

Lastly, Cipher, the cybersecurity unit, has reported sales of 4 million euros in the first quarter of 2022.