Investing.com — Pluxee NV (EPA:) reported 12.1% organic growth in first-quarter operating revenue, beating market expectations, and sending its shares soaring 11% in European trading Wednesday.
The French voucher and benefits company attributed the growth to strong client retention and new customer acquisitions.
Operating revenue for the three months ending November 30 reached €249 million ($257.8 million), exceeding analysts’ average estimate of €244 million.
The growth was largely driven by Pluxee’s Employee Benefits division, its largest segment, which posted a 10.4% increase.
Despite economic headwinds in Continental Europe, Pluxee expects future growth to lean more on markets in South and Central America, as well as other international regions.
Latin America continued to play a key role, contributing nearly 40% of Pluxee’s total revenue and recording 11.1% organic growth.
The company is set to finalize its acquisition of Brazilian commuter benefits provider Benefício Fácil in the second half of the fiscal year, with expectations that the deal will boost profit margins immediately.
Moreover, Pluxee’s partnership with Santander (BME:) in Brazil supported growth, with around 90% of business volume migration now completed.
However, the Latin America region faced challenges, including the loss of a student benefits contract in Chile and a 14.5% negative currency impact, primarily tied to Brazil and Mexico.
Pluxee reaffirmed its outlook for the 2025 fiscal year.
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