PARIS: French employee benefits and voucher company Pluxee reported a 3.3% organic decline in third-quarter sales on Friday, as regulatory changes in Brazil weighed on its performance despite stronger-than-expected results and continued client growth.
The company posted quarterly sales of 312 million euros ($357.1 million), exceeding analysts’ consensus estimate of 299 million euros compiled by the company, indicating resilience despite a challenging operating environment.
Pluxee said new client acquisitions and customer retention helped offset part of the pressure created by regulatory reforms in Brazil, one of its key growth markets.
How has Brazil affected the company’s performance?
The company’s third-quarter results were primarily impacted by Brazil’s new regulations, which introduced a 3.6% cap on merchant discount rates in the country’s meal and benefits voucher market.
Brazil represents one of Pluxee’s most important markets in Latin America, where employee benefits providers have increasingly relied on growth to compensate for slower expansion in their traditional European markets.
Chief Executive Officer Aurélien Sonnet said the company remained focused on implementing its action plan in Brazil to mitigate the impact of the regulatory changes.
“In Brazil, our teams remain fully mobilized in delivering our action plan,” Sonnet said in a statement.
What is the company’s outlook?
Despite the decline in quarterly sales, Pluxee reaffirmed its financial guidance for the full fiscal year, signalling confidence in its ability to navigate regulatory challenges while sustaining growth in other regions.
The company has increasingly expanded its presence across Latin America and other international markets as it seeks to diversify revenue streams beyond Europe, where economic uncertainty has slowed business activity.
Pluxee, which was spun off from French catering and facilities management group Sodexo in 2024, continues to position client growth, operational efficiency and geographic diversification as key pillars of its long-term strategy.