Edenred Sees Venezuela, Brazil Currency Depreciation Hurting EBIT

By Ambroise Ecorcheville

PARIS--French meal vouchers company Edenred SA (EDEN.FR) Thursday said it expects operating profit in 2014 to be little changed from the previous year as a depreciation in South American currencies continues to weigh on its results.

Edenred said it expects its earnings before interest and taxes in 2014 to be between 335 million euros ($449 million) and EUR350 million, compared with EUR343 million in 2013. The company expects currency deprecation in Brazil and Venezuela to lower its EBIT by around EUR20 million in the second half of this year, down from a negative impact of EUR35 million in the first half.

During the first half of the year, the company's EBIT was EUR148 million, down 6.7% from the same period a year ago. Overall revenue during the first half of the year was EUR486 million, down 3.4% from the corresponding period a year earlier.

Edenred's net profit in the first half of the year was down 9.3% at EUR70 million.

Separately, the company announced a partnership with American Express (AXP) in Mexico that will allow the U.S. credit card company to offer new services to customers such as gas vouchers offered by Edenred.

Write to Ambroise Ecorcheville at [e-mail]

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