Analysis of 2017 Prosegur Cash results

Analysis of Cash Prosegur 2017 results

Analysis Department of Bankinter offers analysis of the latest news on the Spanish company:

Prosegur Cash

– Close: 2,575 euros

– Daily Variation: + 0.00%

Good results 2017

  • Revenue : 1,924 million euros (+ 11.6%).
  • EBITDA : 377 million euros (+ 12%).
  • EBIT : EUR 360 million (+ 24%).
  • Net profit from continuing operations : EUR 236 million (+ 27.8%).

The growth in sales is explained by two factors:

  1. organic double digit growth (+ 12.7%).
  2. Increased weight of new products (8.7% vs 6.4% sales above).

The exchange rate has had a negative impact in the second half of the year. Besides it has an expansion margin (+14 bp to 18.7%). The financial result remains positive for gains from foreign exchange transactions. The financial debt has been reduced in the period from 611 million euros in 2016 to 424,000,000 euros in December 2017 thanks to cash flow generated (197 million euros) and income from the sale of property and brand. The cost of debt stood at 1.85%. The ratio net debt / EBITDA stood at 1.0x.

Opinion

We stand out:

(I) Strong organic growth (+ 10.2% net effect of currency).

(Iii) Increased weight of the new products.

(Iii) The margin expansion.

(Iv) Strong cash generation.

 

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