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Introduction & Market Context
Pluxee NV ( AMS (VIE:AMS2):PLX) shares jumped 11.34% following the release of its H1 FY2025 results on April 17, 2025, as the employee benefits provider reported strong financial performance and upgraded its margin guidance for the full year. The stock reached €20.72, moving closer to its 52-week high of €31.82, as investors responded positively to the company’s robust growth metrics and improved profitability.
In a challenging macroeconomic environment characterized by inflation concerns and cautious hiring in some sectors, Pluxee demonstrated the resilience of its business model across its 29-country footprint, leveraging multiple growth levers to deliver consistent results.
Executive Summary
Pluxee reported total revenue of €635 million for H1 FY2025, representing organic growth of 10.8% and reported growth of 7.2% compared to the same period last year. The company achieved a remarkable 55.5% year-over-year increase in net profit to €106 million, while recurring EBITDA grew 22.5% organically to €225 million.
As shown in the following comprehensive performance overview, Pluxee’s recurring EBITDA margin expanded by 260 basis points organically to 36.4%, significantly outpacing the company’s initial guidance:
"We continue to deliver strong performance in H1, both on top line and margin expansion," stated Aurelia Anthony, CEO of Pluxee, during the earnings call. Based on these strong results, the company upgraded its FY2025 recurring EBITDA margin expansion objective to +150 basis points at constant rates, compared to the initial target of +75 basis points.
Detailed Financial Analysis
Pluxee’s business volume issued (BVI), which serves as the foundation for revenue generation, reached €13.1 billion in H1 FY2025, representing organic growth of 9.3%. Employee benefits, which accounted for 73% of total BVI, grew 8.4% organically to €9.6 billion. Excluding a one-off purchasing power program in Belgium that created a high comparison base, employee benefits BVI would have grown 10.1% organically.
The following chart illustrates the sustained momentum in business volumes growth across both employee benefits and other products and services:
Total (EPA:TTEF) revenue growth of 10.8% was driven by both operating revenue and float revenue. Operating revenue, which represented 87% of total revenues, increased 10.1% organically to €552 million, while float revenue grew 16.2% organically to €83 million. The company’s take-up rate for employee benefits improved to 4.8% in H1 FY2025, up from 4.7% in the same period last year.
As shown in the following breakdown of organic revenue growth, both Q2 and H1 FY2025 demonstrated solid performance:
Recurring EBITDA reached €225 million, with a margin of 36.4% on an organic basis, expanding by 260 basis points year-over-year. According to CFO Stephane Lhopiteau, "Most of our improvement in EBITDA margin came from operational items," with efficiency gains and operational leverage being key drivers alongside a positive contribution from float revenue.
The following chart highlights the outstanding increase in recurring EBITDA and margin expansion:
Net profit surged 55.5% to €106 million, benefiting from strong revenue growth, margin expansion, and normalization of spin-off related costs compared to the previous year:
Pluxee maintained a strong balance sheet with a net financial cash position of €1,045 million as of February 28, 2025, slightly down from €1,054 million as of August 31, 2024. The company generated recurring free cash flow of €171 million, resulting in a recurring cash conversion rate of 76%, above the company’s target of 75% on average for FY2024-2026.
Strategic Initiatives
Pluxee’s growth strategy is built on a balanced model with multiple levers, as illustrated in the following diagram:
New client acquisition remained strong, with the company signing €800 million in annualized business volume from new clients during H1 FY2025, putting it on track to exceed its annual target of €1.3 billion. The contribution from small and medium-sized enterprises (SMEs) increased to over 30% of development business volumes, up from more than 25% in H1 FY2024.
The following chart shows the expanding contribution of new client acquisition across regions:
Client retention also performed well, with a net retention rate exceeding 102% (excluding one-off programs). The company achieved an additional €600 million increase in face value during the semester, representing more than 60% of its cumulative objective of €3 billion for FY2024-2026.
As shown in the following slide, Pluxee effectively leveraged its existing client portfolio:
Pluxee continued to enhance its value proposition to all stakeholders, focusing on a multi-benefit approach for clients and improved digital tools for merchants:
The company complemented its organic growth with strategic acquisitions and partnerships, including Cobee in Spain (closed in September 2024), Benefício Fácil in Brazil (closed in March 2025), and a strategic partnership with Santander (BME:SAN) in Brazil (closed in June 2024). These transactions have strengthened Pluxee’s market position, expanded its product offerings, and enhanced its technological capabilities.
Forward-Looking Statements
Based on its strong H1 performance, Pluxee upgraded its FY2025 recurring EBITDA margin expansion objective to +150 basis points at constant rates, up from the initial target of +75 basis points. The company reconfirmed its other financial objectives, including low double-digit organic revenue growth and a recurring cash conversion rate above 75% on average over FY2024-2026.
The following slide outlines Pluxee’s updated guidance for FY2025 and reconfirmed objectives for FY2026:
"We are upgrading our fiscal 2025 recurring EBITDA margin objective, while reconfirming our organic total revenue growth and recurring cash conversion full year objectives," said CEO Aurelia Anthony. The company expects float revenue to grow at a mid to high single-digit rate for the full year, based on H1 performance and the latest forward curves.
Despite macroeconomic uncertainties, including cautious hiring observed in some sectors and countries, Pluxee remains confident in its ability to deliver on its objectives, citing the resilience of its business model, its diversified geographic footprint, and the essential nature of its solutions for clients.
Analyst Perspectives
During the earnings call, analysts inquired about the macroeconomic environment, with Pluxee noting cautious hiring in some sectors but emphasizing the company’s focus on delivering value to clients and maintaining stable take-up rates. The company also reassured stakeholders of its resilient business model in high-inflation environments, highlighting the natural hedge provided by face value increases.
When questioned about potential risks from exposure to small businesses, management indicated they hadn’t observed any specific negative trends in that segment. Regarding the Italian commission cap negotiations, the company stated they hadn’t seen any correlation between these discussions and other employee benefits offerings.
Overall, Pluxee’s H1 FY2025 presentation demonstrated the company’s ability to execute its strategic growth plan while delivering strong financial results, positioning it well to continue creating value for shareholders despite an uncertain macroeconomic environment.
Full presentation:
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