Madrid, 29 October 2015 – Prosegur has recorded a consolidated net profit of EUR 127 million during the first nine months of 2015, 17.1 per cent higher over the same period last year.
Sales during the period amounted to EUR 2,943 million, which represents an increase of 6 per cent over the third quarter of 2014. The EBIT, earnings before interest and taxes, stood at EUR 228 million, 6 per cent higher than in 2014.
Regarding the first nine months of 2015 it is worth mentioning the positive trend and sustained growth of the three business lines of the Company: Integrated Security Solutions, Cash Management and Alarms. This period has also shown that, despite the pressure of economies such as that of Brazil, the business model of Prosegur is sound and profitable.
Prosegur reports organic growth in all its activities
With regard to the activity of the Company by business line, Integrated Security Solutions has increased its sales by 3.5 per cent to EUR 1,479 million. This business line in Latin America has continued the positive trend that started some months ago. With a turnover of EUR 776 million, it increased by 9.9 per cent over that of the same period last year. On the other hand, in Europe and Asia-Pacific the activity recorded sales of EUR 702 million, which represents a drop of 2.7 per cent. Turnover was affected by the optimization of the customer portfolio in France, a process that the Company has been carrying out for the last months.
The Cash Management unit managed to increase sales by 7.7 per cent to EUR 1,308 million in the first nine months of the year. In the Europe and Asia-Pacific area sales were pushed forward 4 per cent to EUR 397 million thanks to different factors, among them the recovery of the activity in Spain and Portugal and the growth of the German and the Australian operation. In Latin America, the area recorded a turnover of EUR 911 million, an increase of 9.4 per cent. Even though this reflects all the challenges that the Company has had to overcome in the Brazilian market it also offers potential for further development in the region.
The Alarms business has experienced significant growth despite the seasonality of the third quarter in Europe. Alarm sales amounted to EUR 156 million, representing an increase of 16.4 per cent. In this period, Latin America reported a strong growth in sales of 26.6 per cent amounting to EUR 76 million. The business line has closed the period with almost 430,000 alarm connections.
With regard to operations by region, in Europe and Asia-Pacific turnover of the three business units amounted to EUR 1,180 million, an increase of 0.8 per cent. The results of the third quarter evidence the upturn of the activity in economies such as the Spanish or the Portuguese, the strong performance in Germany, in line with the economy of the country, and the good results achieved in Australia and Singapore. Attention should also be drawn to the progress of the Company in China, where it has restructured its operational platform so that it can develop its activity in line with the growth potential that the country offers. At present, Prosegur is one of the market leaders and has fully active licenses to operate in it.
In Latin America, Prosegur has increased sales by 10.3 per cent to EUR 1,763 million. Despite the strong depreciation of the Brazilian Real, the results show the potential for further development in the region, even in the current slowdown of some of its economies. The third quarter results in this region emphasize the growth of the Argentina region (which includes both Uruguay and Paraguay). Furthermore, Peru and Chile also registered growth of 12.1 and 14.2 per cent respectively. And, lastly, Mexico achieved a growth in sales of 16.9 per cent thanks to the results obtained both in Integrated Security Solutions and in Cash Management.
Standard & Poor’s confirms its credit rating
Prosegur’s net financial debt totalled EUR 686 million in the third quarter and the Company continues working on the reduction of its average cost of debt. In addition, in the third quarter of 2015, the credit rating agency Standard & Poor’s upgraded Prosegur’s liquidity profile from “adequate” to “strong”. Another relevant fact is that the Company maintained its BBB/A-2 credit rating, outlook stable. This confirms the financial soundness of the Company that will allow it to undertake the development projects envisaged in the Strategic Plan 2015-2017.
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