Voucher firm Edenred upbeat as companies boost staff benefits

By Diana Mandia

(Reuters) -French voucher provider Edenred raised its full-year core profit forecast on Tuesday as staff shortages and rising inflation push employers to spend more on benefits for workers.

The company, known for its Ticket Restaurant vouchers, said it now expected earnings before interest, tax, depreciation and amortisation (EBITDA) of 770-820 million euros ($787-832 million) this year, implying organic growth of 14-21%.

It had previously guided for EBITDA growth of more than 10% for 2022.

"The glass is more than half full", Chief Executive Officer Bertrand Dumazy told Reuters, saying the company was well placed even if economies worsen.

Edenred is benefiting from inflation as companies buy more meal vouchers to help employees cope with rising food prices. Challenges to recruit and retain staff are also leading employers to offer better benefits for workers.

"The solutions the group offers are attracting more and more clients who view them as an opportunity to increase their employees' purchasing power, encourage more responsible behaviours or tighten their cost control," Dumazy said in a statement.

At 1056 GMT, Edenred shares were up 3.3%.

Morningstar analyst Michael Field noted the "strong" 2022 guidance. "Obviously that could go out the window if we hit a recession, but management are calling it how they see it currently," he added.

Edenred reported first-half EBITDA of 365 million euros, up 22% on a like-for-like basis. But its operating expenses also increased, up 15.5% because of inflation, Dumazy said.

The French government is considering raising the daily lunch voucher limit in a supplementary 2022 budget bill that started being debated in the National Assembly on Friday, a move Dumazy described as "a first good step".

($1 = 0.9782 euros)

(Reporting by Diana MandiáEditing by Barbara Lewis and Mark Potter)