Voucher firm Pluxee targets low double-digit sales growth until 2026

By Stephanie Hamel and Dagmarah Mackos

(Reuters) -Pluxee, the voucher and benefits unit of French food caterer Sodexo, said on Wednesday it is targeting low double-digit percentage organic sales growth until 2026.

The company said it plans to achieve this through investments in technology and targeted acquisitions in what it described as a "vastly underpenetrated" market.

Pluxee, which is due to list on Euronext Paris on Feb. 1, outlined its strategy and financial targets ahead of its Capital Markets Day on Wednesday.

Sodexo's voucher business has benefited from the cost-of-living crisis as employers look for ways to support staff without raising wages. The group last year announced a plan to spin off the unit to capitalise on its strong performance.

"We have been enjoying a strong momentum for the past three years and we plan to really take full advantage of this for the years to come," Pluxee CEO Aurélien Sonnet told Reuters, adding the company's focus was on small and mid-sized enterprises.

It aims to sign 1.3 billion euros ($1.4 billion) worth of contracts from new clients annually, amounting to more than 30% of its total volumes, Sonnet said.

Pluxee, which operates in 31 countries and has recorded double-digit growth in recent years, plans to invest 10% of revenues on average until 2026, with an aim to make its business fully digital, compared to a 90% digitisation currently.

"It will have a positive impact on our margin because we don't have to run anymore a hybrid model, paper and digital," Sonnet said.

Pluxee's plan to hire about 1,000 employees in tech or data remains unchanged, he said.

For 2024, Pluxee is targeting low double-digit organic sales growth and an at least stable recurring core profit (EBITDA) margin, after absorbing standalone costs. It aims to improve the margin to about 37% by 2026.

JPMorgan said Pluxee's growth targets were in line with rival Edenred.

Pluxee posted revenue of 266 million euros for the first quarter through November, up 19.7% organically from a year earlier.

($1 = 0.9147 euros)

(Reporting by Stéphanie Hamel and Dagmarah Mackos in Gdansk; Editing by Milla Nissi and Alexander Smith)