Pluxee earnings beat expectations, but fiscal 2027 profit decline looms 

By Ronan Corcoran

Oct 29 (Reuters) - French employee benefits company Pluxee on Thursday delivered earnings for the fiscal year 2026 above market expectations, but forecast a year-on-year profit decline due to meal-voucher reform in Brazil, sending its shares 13% lower. 

Pluxee's recurring earnings before interest, taxes, depreciation and amortization (EBITDA) came in at €488 million ($491.13 million) for the year ending on August 31, 2026, beating the forecast of €474 million seen in a company-compiled consensus.

For fiscal 2027, Pluxee expects recurring EBITDA of at least €440 million, implying a year-on-year decline as it absorbs the impact of Brazil's PAT reform.

"Against this backdrop, we are acting decisively," Pluxee Chief Executive Officer Aurélien Sonet said in a statement.

Fiscal 2027 guidance fell short of expectations, J.P. Morgan said in a note, adding Pluxee did not guide on topline growth, despite typically doing so.

Brazil, which continued to deliver double-digit growth in 2026, remains a priority market for the company, with sales representing around 30% of group revenue.

"The re-election of President Lula brings clarity and stability for the years ahead," Sonet told reporters as Pluxee navigates the full impact of regulatory changes in the country. 

Pluxee's fourth-quarter operating revenue fell 6.2% organically, less than feared by analysts, with a drop in Latin America of 12.1%.

On a 12-month basis, the company's sales came in broadly in line with expectations.

The group, which said 2027 would be a "transition year," said it intends to hike its dividend payout by about 70% to €0.65 for 2026, representing an increase in the distribution ratio to 40% from at least 25%.

($1 = 0.8959 euros)

(Reporting by Ronan Corcoran, editing by Izabela Niemiec)