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Prosegur increases its sales by 6.9% to reach 2,348 million euros in the first half of 2024
Prosegur's sales reach €2.348 billion in H1 2024, reflecting strong growth and a commitment to excellence in global security solutions.
Madrid (July 30, 2024):
- EBITDA increased by 4.9%, reflecting a significant improvement in its margin in the first half of 2024.
- The growth occurs in the group's main geographies, Latin America and Europe, and is based on the organic increase of all business units.
- The penetration of new products reaches outstanding figures with excellent performance of around 32% in all geographies.
Prosegur, a global leader in security solutions, today presented its results for the first half of 2024, highlighting solid organic sales growth and improved profitability. During this period, Prosegur achieved an outstanding financial performance, reaching total sales of 2,348 million euros, which represents an increase of 6.9% compared to the same period of the previous year.
In terms of profitability, Prosegur has demonstrated a solid performance, with EBITDA growth of close to 5% and a significant improvement in its margin. Organic growth has been the main driver of the company's expansion during the first half of 2024, with a notable increase to 27%.
Prosegur's global presence and strategic focus on inflationary environments have been key factors driving this exceptional growth in all geographies. This growth dynamic is expected to continue during the second half of the year, accompanied by a further improvement in profitability in organic terms.
Latin America, which accounted for 49.3% of total revenues, has experienced a growth of 6.6% compared to the same period of the previous year, reaching a turnover of 1,159 million euros. Europe, for its part, has recorded growth of 10.2%, reaching 944 million euros and representing 40.2% of the group's revenues. In the rest of the geographies, sales have reached 245 million euros, experiencing a decline of 3.1%, affected by the respective business restructurings undertaken in Australia and India. These results reflect Prosegur's strong global presence and its ability to efficiently pass on cost increases to tariffs, ensuring sustainable growth in its main regions, despite currency and calendar effects and hyperinflation.
The Prosegur Group has continued to demonstrate a high degree of financial soundness, in addition to maintaining a moderate level of leverage, despite growth investments, with a controlled net debt. Net financial debt at the end of the first half of the year reached €1,164 million, with an average cost of 2.8%, and the level of indebtedness remains stable, with a net financial debt to EBITDA ratio of 2.8 times.
During this half-year, Prosegur has also maintained its focus on the penetration of new products, achieving outstanding results in Prosegur Cash, where its sales reached 318 million euros, representing 31.8% of the global sales of the Cash business, and reaching 600 million euros for the first time in the last twelve months. This demonstrates the company's ability to adapt its business model and offer innovative solutions. In addition, at Prosegur Security, Hybrid Security solutions have continued to increase their presence in the customer base, being largely responsible for growth and improvement of margins.
EVOLUTION OF ACTIVITY BY BUSINESS LINES
Prosegur Security: extraordinary organic growth and robust increase in commercial production
In the first half of 2024, Prosegur Security stood out for its solid financial performance, reporting sales totalling 1,199 million euros, representing an increase of 11.8% compared to the same period of the previous year. This increase has been driven by an organic growth strategy of more than 37%, achieving positive results in all the countries where it operates, with special emphasis on the United States and Spain markets. The company's ability to efficiently pass inflation on to prices has been critical to ensuring sustainable growth across all its geographies.
In terms of profitability, it has shown a strong recovery in the first half, with a growth of 30% compared to the same period of the previous year, reaching an EBITA of 34 million euros. Innovation has been one of the keys to success for this line of business. With more than 32% of its customer base adopting hybrid solutions, the company has demonstrated its ability to deliver advanced technologies that adapt to changing market needs. In addition, it has gradually incorporated new services into its product and service mix, further improving the efficiency of its technology offering and positively impacting margins.
Prosegur Security's focus on expanding the North American market is another relevant aspect, as it has the objective of opening 20 new branches and being present in 26 States by the end of this year. This ambitious strategy seeks to consolidate its presence in one of the most important regions for the company, and is expected to contribute significantly to its growth and profitability in the future.
Prosegur Cash: strong organic growth and new product sales
During the first half of 2024, Prosegur Cash had sales of €998 million, representing a growth of 1.9% compared to the same period of the previous year. This result has been driven by organic growth of 48%, supported by both the increase in volumes managed and the increase in prices, as well as by an improvement in geographical and product diversification. In this regard, double-digit growth has been experienced in the company's main transformation solutions, including: Cash Today, a cash digitization solution; and the foreign exchange business, Forex, which has recently opened operations in Singapore and New Zealand.
Despite the negative effect of the exchange rate in some geographies, Prosegur Cash has demonstrated its ability to maintain sustained growth. EBITA, in the first half of 2024, it reached €113 million, with a margin of 11.3%, despite the impact of the cyclical impact of the currency in Latin America.
With regard to new products, Prosegur Cash maintains an excellent growth progression that represents close to 32% of its total business sales in the first half of 2024, 11.7% higher than in the same period of 2023.
Prosegur Alarms: outstanding organic growth and customer loyalty
During the first half of the year, Prosegur's alarm activity has experienced solid growth in its customer base. The company has reached a total of 908,000 customers, representing an increase of 8.7% compared to the same period last year. This figure is achieved thanks to the combination of excellent growth in new sign-ups, with nearly 106,000 additional subscriptions.
Likewise, both Prosegur Movistar Alarms and Prosegur Alarms have seen significant improvements in monthly recurring fees (ARPU), with growth of 5% in the case of MPA and 2.1% in the case of Prosegur Alarms.
With regard to profitability during the first half of the year, both Movistar Prosegur Alarms and Prosegur Alarms have experienced significant growth in the service margin (12.4% and 11.5% respectively) and continuity in the deposit margin. Both indicators result in a recurring cash flow of €134 million for Movistar Prosegur Alarms and €82 million for Prosegur Alarms.
AVOS Tech and Cipher: Innovative Solutions in the First Half of 2024
AVOS Tech, during the first half of the year, has unified its business of outsourcing processes and technological services under a single brand in Spain. This union aims to provide comprehensive solutions with high added value based on its own technological developments, and will be completed in 2025 with the incorporation of operations in Chile under the new brand. The company will invest more than €10 million in both its commercial expansion and in the development of SaaS product and architecture, a cloud application for companies, and expects to reach a turnover of €130 million by 2027.
On the other hand, Prosegur has prioritised the adaptation of Cipher, its cybersecurity line, towards a more efficient and sustainable model in the long term. Cipher has continued to make progress on its xMDR platform, a revolutionary solution backed by Prosegur that addresses cybersecurity challenges. With its innovative approach and ability to adapt to each customer's technology needs, xMDR is positioned 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.