Pluxee shares jump sharply as company doubles margin growth outlook for 2025

Published 17/04/2025, 11:58
© Reuters.

Investing.com -- Pluxee saw its shares surge more than 16% Thursday after the French voucher and benefits firm hiked its margin growth forecast for 2025, citing stronger-than-expected performance driven by a wave of new client wins.

The company now expects its recurring core profit margin to expand by 150 basis points in the year ending August 31, up from a previous target of 75 basis points. Last year’s margin stood at 35.6%.

For the first half (H1) of its fiscal year, Pluxee reported recurring EBITDA of €225 million ($255.8 million), surpassing analyst expectations of €219 million. The margin for the period came in at 35.4%.

“H1 print is slightly better than expectations and margin guidance raise is encouraging,” Barclays (LON:BARC) analysts led by Pravin Gondhale said in a note.

The analysts expect a positive reaction to the print but warn that “broader investor concerns about European macro and regulatory risks, may continue to weigh on the sector in the short term.”

Pluxee’s organic revenue growth was led by the Employee Benefits division, the company’s largest segment, which delivered a like-for-like increase of 11.8%, ahead of the group-wide growth of 10.8%.

Pluxee also said its acquisition of Benefício Fácil, a Brazilian commuter benefits provider, is expected to close in the second half of the fiscal year. The deal is projected to be immediately accretive to the company’s recurring core profit margin.

Commenting on the report, Bernstein analysts said the margin growth hike “gives us more confidence in the group despite a more challenging European environment.”

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