Edenred: Conference call Q3 revenue: Lower than expected and FY guidance downgraded

Q3 was largely impacted by the significant deterioration of the economic situation in Brazil and negative currency impact on consolidation. In fact for the first time for a while, Q3 lfl IV growth of 7% was lower than the annual recurrent objective of between 8% and 14%. With Q4 expected to be similar at the group level as well as in Brazil and taking into account the currency impact on group EBIT, management now expects a FY EBIT of between EUR340m and EUR355m vs. EUR365m and EUR375m at the end of July. Dividend and rating not at risk based on our anticipations even if the situation becomes more tense. Too early to come back regarding uncertainties and management transition.

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