Edenred raises 2026 core profit outlook on regulatory reset, half-year results beat

July 23 (Reuters) - French vouchers and benefit cards provider Edenred on Thursday raised its 2026 core profit outlook, citing a rebasing year against a backdrop of regulatory changes concerning meal vouchers in Italy and Brazil.

The group, which helps companies manage staff expenses and benefits and is known for its "Ticket Restaurant" vouchers, now expects adjusted earnings before interest, taxes, depreciation and amortisation (EBITDA) to fall between 7% and 10%, compared to previous estimates for an 8% to 12% drop.

"Against a backdrop of regulatory changes regarding meal vouchers in Brazil and Italy, our results have exceeded expectations," CEO Bertrand Dumazy said in the earnings report.

2026 REGULATORY RESET

Following the regulatory reset in 2026, Edenred said it expects to resume its profitable growth trajectory, confirming its targets of 8% to 12% annual core profit growth for 2027 and 2028.

"We are confident that once 2026's Meal & Food regulatory reset is behind us, Edenred will resume its sustainable and profitable growth trajectory," Dumazy said in a statement.

The half-year results were solid, broker J.P. Morgan said in a note, reinforcing their view that trading remains resilient even with ongoing regulatory pressure.

The company's core benefits and engagement segment, which accounts for 65% of total operating revenue saw a 2.2% operating sales decline after Italy and Brazil capped merchant fees for meal vouchers, while Brazil also opened its system to open-loop payment arrangements.

The company reported first-half core profit of €616 million ($702.98 million), above the €606 million expected on average by analysts polled by the company.

"While results were less exciting than we thought due to higher opex spending in H1, we still see the upgraded guidance as conservative," Jefferies said in a note.

Edenred's shares were flat at 09:57 GMT. The stock jumped 17% on June 18 after the company confirmed investment funds approached it.

Given the recent share rally, we expect a modest performance on Thursday, said Jefferies analysts.

($1 = 0.8763 euros)

(Reporting by Margaux Perrin and Dimitri Rhodes in Gdansk; Editing by Janane Venkatraman)