Prosegur and its subsidiary Prosegur Cash have reported solid results for the first nine months of 2024, highlighting significant organic growth and an improvement in profitability and cash generation. Juan Ignacio Galleano, Director of Investor Relations of the company, shared details and analysis of these figures in a recent interview with Investment Strategiesproviding a broader overview of the group’s evolution and perspectives.
Solid growth in sales and geographic diversification
Prosegur presented a 6.4% increase in salesreaching 3,584 million euros. This growth was driven by organic growth of 37.1%, something that Galleano attributes the agile and efficient pricing strategy implemented in all business units and geographies. According to the manager, the increase in euros of 7% stands out compared to the 6% in the same period in 2023, reflecting consolidated progress despite exchange fluctuations.
Latin America continues to be the most relevant regiongenerating 48.9% of total income. Although its share decreased compared to last year (from 52% to 49%), the region continues to be a pillar due to the economic and social conditions that favor the demand for security and cash solutions. Galleano highlighted that alarm penetration in Latin America is notably low, which represents a great opportunity for expansion.
Improvements in profitability and economic challenges
Prosegur’s EBITDA stood at 399 million euros, 5.9% more than in 2023, with a margin of 11.1%. This growth in profitability was driven by sales expansion and operational efficiency. However, financial results were influenced by non-monetary components, such as the inflation adjustment in Argentina, which remains a challenging factor.
Regarding opportunities in the region, Galleano emphasized the resilience of Prosegur in Latin Americanoting that although Argentina remains a volatile market, conditions point to stabilization in the medium term, which could facilitate more sustained growth.
Prosegur Cash: advances in transformative businesses
Prosegur Cash reported a 1.7% growth in salesstanding at 1,523 million euros. Galleano explained that, adjusting for perimeter changes, organic growth rises to 3%. Transformation products, such as Cash Today and Forex, were key, representing 32.1% of total turnover and providing stability to the business. The sale of 6,300 machines of Cash Today in the first nine months, with expectations of reaching 35,000 units by the end of the year, which underlines the growing acceptance of these solutions by customers.
The growth of the Forex linewith the addition of 51 new stores mainly in Europe, reinforces the company’s product diversification strategy. Galleano anticipated that Forex’s contribution to EBITDA in 2025 will be much higher after a year of strong investment.
Future strategies and debt reduction
Cash generation at Prosegur Cash reached 92 million euroswhich allowed reduce net debt to 898 millionwith a leverage ratio of 2.9 times over EBITDA. Galleano pointed out that the company plans to continue using its liquidity to reduce leverage, with the objective of placing the ratio around 2 times for next year, supported by an expected growth of 30% in cash generation in 2025.
In terms of dividend policy, Prosegur reaffirms its commitment to distribution to shareholders, maintaining a balance between the payment of dividends and debt reduction, ensuring a solid financial structure.
Looking to the future
Looking ahead to the final months of 2024 and ahead to 2025, Prosegur’s strategic priority is to continue optimizing operational efficiency and consolidating business areas that have shown promising growth, such as Prosegur Security and the transformative products of Prosegur Cash. Galleano He ended the interview by emphasizing that The company is on a path of sustainable growth, with expectations of improvements in cash and long-term profitability.