Q2 2024 Prosegur Compania de Seguridad SA Earnings Call Transcript
Key Points
- Prosegur Compania De Seguridad SA (PGCSF) reported a 6.9% increase in total annual sales, reaching EUR2.3 billion, highlighting solid operating performance.
- The company's security business saw a 30% increase in EBITDA, driven by enhanced operating efficiencies and sustainable growth.
- Technology sales in the security business continue to grow, contributing to higher margins despite the temporary impact on cash flow.
- The alarm business showed strong results with service margins increasing by 10% and 12% in Prosegur Alarms and MPA, respectively.
- Net financial debt is structured with a healthy average cost of 2.8%, with over 70% at a fixed rate and long-term maturity, ensuring financial stability.
- The cash business was negatively impacted by the depreciation of the Argentine peso and restructuring costs in the Australian operation.
- Total EBITDA decreased by 3% compared to the same period last year, primarily due to investments in the ForEx business and FX dynamics.
- Net income decreased by 22% to EUR28 million, driven by a sharp increase in financial results due to hyperinflation effects in Argentina.
- Cash flow generation was temporarily impacted by fewer operating days and higher technology sales, leading to increased DSO.
- The leverage ratio remains high at 2.8x, with expectations to reduce it to around 2.5x by the end of the year, indicating ongoing financial pressure.
Good afternoon, and welcome to Prosegur's second quarter 2024 results presentation webcast. Before we start, I would like to remind you that this presentation has been pre-recorded and that it will be available on our corporate website.
I will now hand you over to our CFO, Maite Rodriguez.
Good afternoon, and thank you all for your presence. We are thrilled to present Prosegur's results for the first half of 2024. As we shall see throughout the presentation, operating and financial performance in most of our businesses registered significant enhancements year over year. We are confident that we continue to be in the right track to comply with our main objective of generating value to our shareholders. All our commercial and financial teams are working side-by-side towards that goal, and we expect the second half of the year to be marked by cash flow generation and further deleveraging of the company.
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