Press Room
Prosegur's net profit rises 10% in the first quarter of the year, to €39 million
In local currency, the Company sales increase by 13%
Madrid, 7 May 2014. – Prosegur reported sales amounting to €886 million in the first quarter, representing an increase of 13% from 2013, excluding the exchange rate effect.
EBIT (earnings before interest and taxes) amounted to €77 million, rising the operating margin to 8.7%. Moreover, Prosegur's consolidated net profit grew by 10% to €39 million. These figures confirm the strength of the Company's strategy, despite an uncertain macroeconomic environment, marked by the depreciation of the leading Latin American currencies.
Pursuing its policy of inorganic growth, Prosegur has successfully completed the integration of the latest operations in Germany and Australia.
By geographical area, turnover in Europe and Asia-Pacific increased over the first three months of 2013, totalling €376 million, up 3% from the previous year. This growth was due to bolstered sales in Germany (34%) and France (3%). However, in Spain, revenues were down by almost 10%, in line with the contraction in the sector. As for the Asia-Pacific market, the Company continued to consolidate its position and boosted its income by more than 300%.
In Latin America, meanwhile, sales fell by around 8% to €509 million, because of the impact of the devaluation of currencies, primarily the Brazilian real and the Argentine peso. However, markets in the region performed positively, most notably Colombia, where revenues were up 14%.
Commitment to profitability and renewal of the rating by Standard & Poor's
The Company's objectives for the year include consolidating growth, boosting sales in local currency by offering an integrated portfolio of security solutions, reducing debt and improving cash flow and margins.
Accordingly, in the first quarter, Prosegur ramped up its operating cash flow by 250% compared with the same period last year. Net debt was reduced by €74 million and now totals €592 million. Furthermore, Standard & Poor's (S&P) has renewed the Company's investment grade long-term credit rating of BBB, outlook stable.
Performance of the business lines
Prosegur has three business units: Guarding, Cash Management, and Technology, through which it provides integrated security services.
During the first quarter of 2014, in the Guarding area the Company reported turnover of €397 million, 6% less than in the same period of 2013. By region, this business in Europe and Asia-Pacific fell nearly 8%, while in Latin America the decline was 3.5% (to €196 million).
Cash Management posted turnover of €393 million in the first quarter, an increase of nearly 1% from the previous year. The business in Europe and Asia-Pacific grew significantly, by more than 34%, posting sales of €122 million. Meanwhile, the Latin America area declined by more than 9% to €270 million.
Finally, the Technology line – which includes the development of integrated security systems and fire prevention systems, as well as alarms for homes and small businesses – reported revenues of more than €96 million, down 11% compared to 2013. By region, the Company posted turnover of €53 million in Europe and Asia Pacific and €43 million in Latin America.
Innovation and technology at the service of security
With a strategy that focuses on cutting-edge technology and top professionals, the Company has strengthened its range of cash management solutions for banking and distribution. Prosegur has also launched Prosegur Integra, which groups together all the services and combines them in line with each customer's needs in order to optimize their security solutions. Moreover, it has new services in the field of guarding and mobility solutions applied to residential markets.
All these developments were presented at the annual European event "Prosegur, Integrated Solutions", where best practices and success stories in the field of security were also shared. This event was attended by internationally-renowned speakers who outlined the challenges facing the financial sector and the future of payment means. Prosegur is committed to innovation in developing its security services in order to offer global solutions that match the needs of its more than 390,000 customers in 17 countries.