Prosegur increases its sales by 6.9% to 2,348 million the first half 2024

• EBITDA up by 4.9%, reflecting a significant improvement in margins in 1H2024.
• Expansion in the group's main geographies, Latin America and Europe, was based on organic growth in all business units.
• Penetration of new products reached outstanding figures, with outstanding increases of around 32% in all regions

Madrid, July 30, 2024.- Prosegur, a global leader in security solutions, today presented its results for the first half of 2024, highlighting solid organic growth in sales and improved profitability. During this period, Prosegur has achieved outstanding financial performance, reaching total sales of €2.348 billion, representing an increase of 6.9% compared to the same period last year.

In terms of profitability, Prosegur has performed solidly, with EBITDA growth close to 5% and significantly improving its margin. Organic growth has been the main driver of the company's expansion during the first half of 2024, increasing notably to 27%.

Prosegur's global presence and its strategic focus on inflationary environments have been key factors driving this exceptional growth in all regions. This growth dynamic is expected to continue in the second half of the year, accompanied by a further organic improvement in profitability.

Latin America, which accounted for 49.3% of total revenues, grew by 6.6% year-on-year to €1.159 billion. Europe, on the other hand, recorded growth of 10.2%, reaching €944 million, accounting for 40.2% of the group's revenues. In the other regions, sales declined by 3.1% to €245 million, affected by the respective restructuring of the business in Australia and India. These results reflect Prosegur's strong global presence and its ability to efficiently translate cost increases into tariffs, ensuring sustainable growth in its main regions, despite currency and calendar effects and hyperinflation.

The Prosegur Group has continued to demonstrate a high degree of financial solidity, in addition to maintaining a moderate level of leverage, despite investments in growth, with controlled net debt. Net financial debt at the end of the first half of the year reached €1.164 billion euros, with an average cost of 2.8%, and the level of indebtedness remains stable, with a ratio of net financial debt to EBITDA of 2.8 times.

During this semester, Prosegur has also maintained its focus on the penetration of new products, achieving outstanding results in Prosegur Cash, which reached sales of €318 million, representing 31.8% of the global sales of the cash business, for the first time reaching €600 million in the last 12 months, demonstrating the company's ability to adapt its business model and offer innovative solutions. In addition, Prosegur Security’s Hybrid Security solutions have continued to increase their presence in the customer base, being largely responsible for growth and improved margins.

EVOLUTION OF ACTIVITY BY BUSINESS LINES

Prosegur Security: extraordinary organic growth and a robust increase in commercial production

In the first half of 2024, Prosegur Security has stood out for its solid financial performance, reporting sales totaling €1.199 billion, an increase of 11.8% over the same period of the previous year. This increase was driven by organic growth of more than 37%, achieving positive results in all the countries where it operates, with special emphasis on the US and Spanish markets. The company's ability to efficiently translate inflation into prices has been fundamental in ensuring sustainable growth in all regions.

In terms of profitability, the company has recovered strongly in the first half of the year, with year-on-year growth of 30%, reaching an EBITA of €34 million. Innovation has been one of the keys to success for this business line. With more than 32% of its customer base adopting hybrid solutions, the company has demonstrated its ability to offer advanced technologies that adapt to changing market needs. In addition, it has gradually added new services to its product and service mix, further improving the efficiency of its technology offering and positively impacting margins.

Prosegur Security's focus on the expansion of the US market is another relevant aspect, with the objective of opening 20 new branches and being present in 26 states by the end of this year. This ambitious strategy seeks to consolidate its presence in one of the most important regions for the company, and is expected to contribute significantly to its growth and profitability in the future.

Prosegur Cash: strong organic growth and new product sales

During the first half of 2024, Prosegur Cash posted sales of €998 million, representing growth of 1.9% year on year. This result has been driven by organic growth of 48%, supported by both the increase in volumes and prices, as well as an improvement in geographical and product diversification. In this regard, double-digit growth was experienced in the company's main transformation solutions, including: Cash Today, a cash digitization solution; and the foreign exchange business, Forex, which recently opened operations in Singapore and New Zealand.

Despite the negative effect of exchange rates in some regions, Prosegur Cash has demonstrated its ability to maintain sustained growth. EBITA in the first half of 2024 reached €113 million, with a margin of 11.3%, in spite of the impact of currency fluctuations in Latin America.

With regard to new products, Prosegur Cash maintains an excellent growth progression, representing nearly 32% of its total business sales in the first half of 2024, 11.7% higher than in the same period of 2023.

Prosegur Alarms: outstanding organic growth and customer loyalty

During the first half of the year, Prosegur's alarms business has experienced solid growth in its customer base. The company has reached a total of 908,000 customers, representing an increase of 8.7% over the same period last year. This figure was achieved thanks to a combination of excellent growth in new subscriptions, with close to 106,000 additional subscriptions.

Likewise, both Prosegur Movistar Alarms and Prosegur Alarms have seen significant improvements in monthly recurring fees (ARPU), with growth of 5% in the case of MPA and 2.1% in Prosegur Alarms.

With regard to profitability during the first half of the year, both Movistar Prosegur Alarms and Prosegur Alarms have experienced significant growth in the service margin (12.4% and 11.5% respectively) and a continuity in the capture margin. Both indicators resulted in a recurring cash flow of €134 million for Movistar Prosegur Alarms and €82 million for Prosegur Alarms. 

AVOS Tech and Cipher: Innovative Solutions in the First Half of 2024

During the first half of the year AVOS Tech has unified its business process outsourcing and technology services business under a single brand in Spain. This union aims to provide high value-added integrated solutions based on proprietary technological developments, and will be completed in 2025 with the incorporation of operations in Chile under the new brand. The company will invest more than €10 million in its commercial expansion as well as in product development and SaaS architecture, a cloud application for companies, and expects to reach a turnover of €130 million in 2027.

At the same time, Prosegur has prioritized the adaptation of Cipher, its cybersecurity line, towards a more efficient and sustainable long-term model. Cipher has continued to advance its xMDR platform, a revolutionary solution backed by Prosegur that addresses cybersecurity challenges. With its innovative approach and ability to adapt to each customer's technology needs, xMDR is positioned as a definitive choice for organizations looking for comprehensive protection. Backed by Prosegur's trust, experience and reputation, xMDR stands out as a unique solution in the market.