2.2.3 2021 results

Analysis of Edenred SE’s revenue

The Company reported revenue of €105 million in 2021 versus €87 million in 2020, including all royalties and service fees earned in the normal course of business.

Service fees relate to services billed under the Master Services Agreement as well as IT services, the secondment of staff and various additional costs.

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Net operating income (loss)

Other income, own work capitalized, reversals of depreciation, amortization and provisions and expense transfers together totaled €74 million in 2021 compared with €74 million in 2020.

The Company ended the year with a net operating loss of €14 million, versus a €30 million loss in 2020.

Operating expenses in 2021 amounted to €192 million compared with €190 million in the previous year.

Other purchases and external charges totaled €106 million in 2021 versus €94 million in 2020.

Payroll costs amounted to €57 million in 2021 versus €59 million in 2020.

Depreciation and amortization of fixed assets amounted to €6 million in 2021, unchanged from 2020.

 

Net financial income (loss)

Edenred SE recorded net financial income of €337 million in 2021, compared with net financial income of €224 million in 2020.

This result can mainly be accounted for by changes in dividends received from subsidiaries, as well as by movements in financial provisions.

Dividend income for the year totaled €455 million, versus €299 million in 2020.

It included €185 million from Edenred France, €67 million from Edenred Sweden, €50 million from Edenred Italy, €36 million from Edenred Germany and €30 million from Edenred Belgium.

Movements in financial provisions, for the most part provisions for impairment of shares in subsidiaries and risks related to subsidiaries, represented a net expense of €114 million. In 2021, this broke down into €119 million in provisions for shares in subsidiaries and affiliates, €7 million in reversals of provisions for shares in subsidiaries and affiliates, €7 million in provisions for contingencies, €1 million in reversals of provisions for contingencies, €2 in additions to intra-group loans and €7 million in reversals of intra-group loans.

Movements in write-downs on shares in subsidiaries and affiliates included impairment losses of €33 million for Edenred Czech Republic, €33 million for Edenred UK, €27 million for Edenred Slovakia, €13 million for ASM and €5 million for Edenred Luxembourg and for Gameo.

Movements in write-downs of current accounts mainly comprised impairment losses of €2 million for Edenred Singapore and a reversal of €5 million for Gameo.

 

Recurring profit (loss) before tax

Edenred SE reported a recurring profit before tax of €322 million in 2021 versus a recurring profit before tax of €195 million in 2020.

 

Non-recurring items

Non-recurring items represented a net expense of €4 million for the year, compared with net income of €6 million in 2020.

In 2021, these items included €2.1 million in expenses and provisions related to tax audits and €2 million in non-recurring impairment linked to the Trip project.

 

Income tax

Income tax amounted to a €12 million benefit in 2021, versus a €4 million benefit in 2020.

The Company reported taxable profit of €3.6 million in 2021, compared with a tax loss of €18.2 million in the previous year.

Edenred SE and its eligible French subsidiaries elected for the Group relief system governed by Article 223A of the French General Tax Code (Code général des impôts) on March 18, 2011. The election has been applied since the beginning of the 2011 tax year.