Prosegur reports a first quarter consolidated net profit of €13 million, with profitability up 22.7%
Prosegur starts off the year strong, with sales growth of over 13%, reaching €1,071 million, supported by a 22.7% increase in EBITA profitability.
Madrid, May 4, 2023. Prosegur, a world leader in security solutions, has presented its results for the first quarter of 2023, highlighting an excellent start to the year with sales of €1.071 billion. This represents a growth of 13.1% compared to the same period last year, and organic growth of 23.6%.
In terms of geographic activity, Latin America accounted for 49% of revenues, with a turnover of €527 million, an increase of 12.6% compared to the same quarter last year. In Europe, revenues have increased by 13.2% to €417 million, representing 39% of the group's total. In the rest of the geographies, revenues reached €127 million, a 14.8% increase compared to the same period last year.
It is worth noting the remarkable organic growth in all regions where Prosegur is active, reflecting the advantage of operating in high inflationary environments and the ability to transfer cost increases to prices in an agile and efficient manner. This solid performance is reflected in the significant growth in local currency in all regions, reaching 39% in Latin America.
Regarding the profitability of its operations, Prosegur has maintained its 2022 growth trend, along with strong progression in each line of the income statement. Despite seasonality, mainly affecting the Prosegur Cash and Prosegur AVOS businesses, as well as increased labor costs, EBITA has reached €74 million euros, which represents a 22.7% improvement. The EBITA margin has grown to 6.9%.
At the same time, new products continue to show strong growth and now represent close to 30% of total revenues. Prosegur Security’s new concept of hybrid security is now used by more than 32% of clients, while Prosegur Cash’s innovative Cash Today, Corban and Forex solutions have grown to represent 28% of sales.
The recovery of profitability and the gradual improvement of margins are noteworthy. Prosegur Cash has shown an organic growth of nearly 30%, and has had an excellent performance in all geographies, with good growth prospects for the year. In the domestic alarms business, both Prosegur Alarms and Movistar Prosegur Alarms have improved their efficiency indicators.
Consolidated net profit, excluding minority interests, amounted to €13 million, 19.8% above the same period in 2022. Prosegur has demonstrated good cash generation capacity in the first quarter of the year. The net financial debt at the end of the first quarter reached €1.202 billion, with an average cost of 2.5%. The level of indebtedness remains stable with a net financial debt to EBITDA ratio of 2.3 times. The financial results of the first quarter show the solidity and efficiency of Posegur’s business model. In addition, the company continues to make significant progress in terms of transformation, innovation, and sustainability. Recently, Prosegur and Prosegur Cash have announced a new wind energy project to offset CO2 emissions in Brazil, which compensates for the emissions generated by its operations in Europe, Central and North America. The initiative reaffirms Posegur’s commitment to global sustainable development and environmental protection.
Activity by business line:
In the first quarter of 2023, Prosegur Security has experienced solid progress in sales, with an organic growth rate close to 18%, led by Spain and the United States. The company has focused on expanding its presence in the US market, opening six new operating centers there. Prosegur Security has also enjoyed a strong recovery, with growth of over 34% in the first quarter. Although margins have been affected temporarily by seasonality and growth investments in the US market, the company has been steadily improving its margins. Additionally, Prosegur Security has made good progress in price-to-market pass-through.
Prosegur Security has continued to develop its hybrid security line, with more than 32% of its customer base using hybrid solutions, representing an increase of more than 1% compared to 2022. The company expects to see a gradual increase in the number of hybrid services in the future.
During the first quarter of 2023, Prosegur Cash achieved organic growth of nearly 30% in all regions, despite the impact of exchange rates. However, seasonality temporarily impacted the EBITA, but the company expects a gradual recovery as this seasonal trend normalizes throughout the year. Prosegur Cash reported a growth of over 40% in new products, driven by the excellent performance of its Cash-Today and CORBAN solutions. The acquisition of ChangeGroup has further strengthened the business line. Prosegur Cash continues advancing with its strategy of innovation and growth, consolidating itself as a market leader.
During the first quarter of 2023, Prosegur Alarms experienced solid growth in terms of its customer base. The company now has a total of 819,000 connections, representing an increase of over 95,000 new customers compared to the same period last year. Of these, 454,000 correspond to Movistar Prosegur Alarms, while 365,000 belong to Prosegur Alarms, which covers all operations outside Spain. In terms of sales, Prosegur Alarms reported revenues of €46 million euros, representing a growth of 6.9% compared to the first quarter of the previous year. Organic growth has been particularly noteworthy, with an increase of 36.3%, which has led to a 43% increase in new registrations. Movistar Prosegur Alarms (MPA) has added nearly 26,000 new customers in this period, improving its monthly recurring revenue by more than 8% and decreasing its churn rate by 20 basis points.
Prosegur AVOS and Cipher
Prosegur Avos achieved solid sales growth during the first quarter of 2023, with an increase of 19.9% compared to the same period of the previous year, reaching €24 million. This growth was driven by its focus on the financial and insurance sector, as well as technology and consulting. In addition, the profitability of the business line was firm, with €6 million in the first quarter of 2023, an increase of 5% on 2022.
As for Cipher, the business posted revenues of €3 million in the first quarter, a fall of 8.8% on the previous year. The company has been impacted by investment in restructuring to create a more efficient and sustainable long-term service model. It is important to highlight that Cipher is in the final stage of implementing its new xMDR platform globally, an innovative security service designed to help companies around the world secure their digital footprint using cutting-edge technologies such as AI, machine learning and cloud-based computing.