Press Room
Prosegur turnover increases to €1,753 million in the first half year 2012, 33% above the previous year
Cash flow generation improved by almost 50 per cent in the first half of the year.
Madrid, 30th July 2012. – During the first six months of the year, Prosegur turnover reached €1,753 million, equivalent to an increase of 33% on the same period in 2011, thus confirming the strength of the Company’s business model. Moreover, organic growth accounts for 12% of the increase in earnings despite the difficult economic environment currently prevalent in Europe in general and in Spain in particular.
EBIT (earnings before interest and taxes) amounted to €138 million, almost 9% year-on-year increase. On its part, in line with the forecasts for the year, the Company’s consolidated net profit during the first six months reached €70 million, which implies a drop of 9,3% compared with 2011. This is mainly due to the expenses incurred in the most recent acquisitions carried out by the Company. One of them is the acquisition of Brazilian Nordeste Segurança and Transbank in March, for €359 million which led to Prosegur being the only private security operator in Brazil to provide its customers a fully comprehensive service all over the country with a workforce of 51,000 employees.
During the first half of 2012, Prosegur therefore continues to strengthen its leadership in the private security sector in each of the markets in which it is active. The Company’s business strategy is based on proximity to customer, quality and excellence, as well as continuous innovation to enable it to provide new solutions and services.
By geographical area, sales in the Europe-Asia totalled €733 million, a 15% increase on the same period the year before. In Spain, despite the macroeconomic context, turnover is in line with that of the previous year, with a slight downturn of 0.1% and sales of €473 million as a result of the excellent sales effort and a product offering which is specialised and adapted to the needs of the companies in light of the current situation. On its part, Latin American earnings increased by almost 50%, reaching €1,021 million and confirming the solidity of this market in the Company’s business.
Another aspect worth highlighting is the significant improvement obtained in the cash flow generation, 50% over first half of 2011. Prosegur meets therefore one of the targets set at the beginning of the year.
Positive global performance in the three lines of business during the first half of 2012
The Company has a range of integral security services which are provided via three separate lines of business: Guarding, Cash in Transit and Technology. In the first six months of 2012, Prosegur’sGuarding division posted turnover of €807 million, almost a 25% rise on the first six months of 2011. By region, the business in Europe-Asia grew to €449 million, which represents an increase of around 4%, while Latin America it soared by almost 68% up to €358 million.
The Cash in Transit unit reported turnover of €751 million in the first six months of the year, 47% more than in the previous year. The Europe-Asia business rocketed by almost 80%, with sales of €183 million, while in Latin America it grew by 39% to €568 million.
Lastly, Prosegur’s Technology business posted earnings of €195 million, equal to an increase of almost 22% on the same period the year before. This improvement is due to the support provided by the Company to this business line, which completes its integrated product offering. This area encompasses the development of integrated security and fire protection systems for residential customers and for small and medium-sized businesses. By region, in Europe-Asia the Company invoiced €101 million, which represents a 2011 similar level of sales, whereas in Latin America, the Company obtained €94 million euros, a 58% year-on-year increase.
Human capital and innovation, the cornerstones of the growth strategy
Prosegur invests in technology and innovation in order to offer businesses the best solutions in the market. To this end, the Company has a skilled and experienced team to research, innovate and develop new security products in the various business areas in order to offer a competitive advantage and thus offer higher added value to customers and greater efficiency in processes and activities.
As main goals to achieve in the coming months, Prosegur shall be focusing its efforts on consolidating growth in the countries in which it is active, whilst simultaneously following-up the integration process of each of the businesses acquired as quickly and as efficiently as possible.
This strategy, along with a workforce of more than 150,000 employees, committed to the needs of the customers and quality of service, enables Prosegur to continue to grow and develop new solutions and services.