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Investing.com -- French vouchers provider Edenred (EPA:EDEN) announced on Tuesday that it anticipates slower revenue growth in 2025 as it approaches the end of its medium-term "Beyond22-25" strategic plan, amid ongoing economic uncertainty in Europe.
The company's shares plunged more than 6% in Paris trading.
"We will continue to prepare for the future growth of Edenred, but this growth will be less high than what it was in previous years," Chairman and CEO Bertrand Dumazy said during a call with analysts.
Edenred reported a 19% organic increase in EBITDA for 2024, reaching 1.27 billion euros ($1.33 billion), surpassing the company's own consensus estimate of 1.26 billion euros.
It also posted its highest-ever earnings per share for 2024, reaching 2.07 euros, a 21% increase compared to the previous year.
For 2025, the group expects operating revenue to grow at a high single-digit percentage rate. This outlook reflects the impact of a slowing European economy and a 60-million-euro hit to EBITDA from Italy's cap on merchant commissions.
However, Dumazy noted that growth in Latin America is expected to accelerate, partially offsetting these challenges.
The 2025 EBITDA guidance has been reiterated, targeting at least 10% like-for-like growth.
Despite unchanged guidance, Barclays (LON:BARC) analysts said they “see some downside risks coming [amid] slower like-for-like growth,” adding that “broader concerns regarding heightened regulatory risk may stick around.”