Prosegur reports a first half net profit of €35 million, up 13,7%

- Profitability on the rise: EBITA increases by 16%, reflecting a significant improvement on its margins in the first half of 2023.

- Sales increase: Prosegur records 9.7% growth in 1H2023, reaching a total of €2.196 billion.

- New products penetration: The company enjoys solid product penetration and organic growth of close to 27% in all geographies.

- Commitment to sustainability: Prosegur and Prosegur Cash repeated outstanding scores in S&P Global Ratings ESG Evaluation. Prosegur's Commitment to sustainability recognized by S&P Global Ratings ESG Evaluation.

 

Madrid, July 31, 2023. Prosegur, a global leader in security solutions, today presented its results for the first half of 2023, showcasing robust growth in sales and a substantial improvement in profitability. With total sales reaching €2.196 billion, marking a remarkable 9.7% increase over 2022, Prosegur's financial performance has been nothing short of outstanding, positioning the company at the forefront of the industry and sustaining an upward trajectory during this period.

Organic growth has been the main driver of the company's expansion during the first half of 2023, witnessing a noteworthy increase of close to 27%, effectively overcoming the negative impact of exchange rates. Moreover, the company has displayed consistent profitability, with EBITA growth surpassing 16% and experiencing significant improvements in its margins.

The success of Prosegur's exceptional growth can be attributed to its strategic focus on inflationary environments and its global presence. This trend is expected to continue throughout the second half of the year, further reinforcing the company's position in the market.

Latin America, accounting for 49% of total revenues, saw 6% growth compared to the same period last year, reporting revenues of €1.087 billion. Europe, on the other hand, recorded growth of 14.6%, reaching €857 million, representing 39% of the group revenues. Sales in other geographies experienceda 10.2% increase, reaching €857 million. These results reflect Prosegur's strong global presence and its ability to efficiently translate cost increases into prices, ensuring sustainable growth in all regions.

Prosegur's financial solidity is evident in its consolidated net profit of €35 million for the first half of 2023, showcasing a remarkable 13.7% increase compared to the same period in 2022. Despite growth investments, the company has maintained moderate leverage levels, with net debt under control. The net financial debt at the end of the first half of the year was €1.193 billion, with an average cost of 2.5%, and the level of indebtedness remained stable with a ratio of net financial debt to EBITDA of 2.3 times.

Throughout the first six months of 2023, Prosegur has also maintained its focus on the market penetration of new products, with Prosegur Cash attaining outstanding results, reporting sales of €150 million marking a record quarter, accounting for 30% of the global sales of the cash business. Furthermore, hybrid security solutions at Prosegur Security have continued to increase their presence in the customer base, and have significantly contributed to growth and margin improvements.

In terms of sustainability, Prosegur and Prosegur Cash's efforts have been acknowledged by S&P Global Ratings ESG. With an evaluation of 62/100 in its ESG commitment, together with Prosegur Cash, they remain the only security services subsector companies to obtain and publish this evaluation over the past year, reaffirming their commitment to sustainable practices.

BUSINESS LINE PERFORMANCE

Prosegur Security: sustained growth and rising profitability

The first half of 2023 has been marked by solid financial performance, with sales reaching €1.072 billion, a notable increase of 9.3% compared to the same period last year. This has been driven by an organic growth strategy of more than 20%, 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 transfer inflation to prices has been fundamental to ensuring sustainable growth in all geographies.

The company has recovered profitability strongly in the first half of the year, enjoying 23% growth compared to the same period last year, with an EBITA of €26 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, Prosegur Security has demonstrated its ability to offer advanced technologies that adapt to changing market needs. In addition, it has gradually added new services to its mix, further improving the efficiency of its technology products and positively impacting margins.

The company's focus on efficiency, innovation, and the expansion in the US market by opening 20 new branches, aims to consolidate its presence in this crucial region and contribute significantly to future growth and profitability.

Prosegur Cash: extraordinary organic growth driven by inflation

During the first half of 2023, Prosegur Cash posted outstanding sales of €979 million, representing solid growth of 10.9% compared to the same period last year. This result has been driven by strong organic growth of 33%, supported by increased volumes and price adjustments in an inflationary environment that have proven beneficial to the business. Furthermore, the recent approval of the merger between Prosegur Cash and Linfox Armaguard, Australia's leading securities logistics company, by the Australian Competition and Consumer Commission is to strengthen the sustainable supply of cash in the country, positively impacting both Australia and Prosegur Cash's investment in the region.

Despite the negative effect of exchange rate fluctuations in some geographies, Prosegur Cash has demonstrated its ability to maintain sustained growth. The company's focus on efficiency has also been instrumental, resulting in EBITA growth of 7.1%, translating into €129 million. However, certain seasonal effects associated with new business have been observed.

Sales of new products reached €150 million euros, marking a record quarter. Prosegur Cash continues to grow steadily, representing close to 30% of Prosegur’s total business sales. Additionally, the company has enjoyed an outstanding sales increase of 40% compared to the first half of 2022. Cash Today, Corban and the incorporation of the Forex business have performed excellently, further strengthening Prosegur Cash's position in the market.

Prosegur Alarms: outstanding organic growth and customer loyalty

During the first half of the year, Prosegur's alarms business has experienced solid growth, with the number of customers reaching approximately 835,000, representing a notable 10% increase over the same period last year. This achievement can be attributed to a combination of excellent growth in new registrations, with close to 81,000 additional subscriptions, and a significant reduction in the churn rate.

Both Prosegur Movistar Alarms and Prosegur Alarms have seen significant improvements in monthly recurring fees (ARPU), with growth of close to 10% in both businesses. In terms of profitability, Prosegur Alarms has performed solidly, with Pre-SAC EBITDA per connection increasing by 17.4%, and 5% at Prosegur Alarms, compared to the same period last year.

Prosegur Alarms has also enjoyed a positive first half of 2023, with sales of €92 million, representing an increase of 2.5% compared to the same period last year. However, the highlight has been its impressive organic growth of 42.2%, demonstrating the company's ability to maintain sustainable growth.

AVOS Tech and Cipher: innovative solutions in the first half of 2023

AVOS Tech, provider of technology solutions, experienced remarkable sales growth, reaching €46 million, an increase of close to 11.9% compared to the same period for 2023. Although its profitability has been occasionally affected by increased M&A earn-outs, the company remains committed to expanding and maintaining its focus on technological innovation.

Cipher, Prosegur's cybersecurity unit, has maintained a turnover of €7 million euros during the first half of the year. The company's priority has been the restructuring of its business to adapt it to a more efficient and sustainable model in the long term. Notably, Cipher has introduced its xMDR platform, a revolutionary solution backed by Prosegur that addresses cybersecurity challenges. xMDR's innovative approach and adaptability to each customer's technology needs position it as a definitive choice for organizations seeking comprehensive protection. Backed by Prosegur's trust, experience, and reputation, xMDR stands out as a unique solution in the market.