Pluxee Could Generate Double-Digit EBITDA Growth The Next 2 Years

2025-01-11 10:40:00 ET

Summary

• Pluxee, spun off from Sodexo, promises double-digit revenue growth and higher EBITDA margins, with a strong start in its first financial year.
• The company reported Q1 FY 2025 revenue of 289M EUR, with 13.2% organic growth, and strong cash flow from customer deposits.
• Pluxee's mid-term guidance includes 11% organic revenue growth and a 37% recurring EBITDA margin by FY 2026, projecting a net profit of 2 EUR per share.
• Despite the initial high valuation, Pluxee's capex-light model and strong growth prospects make it an attractive investment with a forward P/E ratio of 11 and a 9.5% FCF yield.

Introduction

Pluxee ( PLXNF ) is a French company and it operates the benefits and rewards division of Sodexo . This is a fast-growing segment, and when the decision to spin Pluxee out of Sodexo was announced I was more interested in this capital-light side of the business rather than the archaic on-site food and dining facilities that stayed behind under the Sodexo umbrella. Pluxee hit the ground running and in its initial three-year plan, it promised double-digit revenue growth. We are now entering the first full financial year of Pluxee as an independent company, and Pluxee remains on track to deliver on all the promises it has made and in the next two years we can look forward to a rapid revenue growth in combination with higher EBITDA margins....

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