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Pluxee Q3 Hit by Brazil Reform Cap on Merchant Fees
Pluxee reported €312M in Q3 revenue, down 3.3% organically, as Brazil's PAT1 reform capped merchant fees. Full-year guidance stands, but H1 2027 remains under pressure.
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Pluxee's third-quarter revenue missed a crucial metric: organic growth turned negative for the first time in recent quarters. Total revenue came in at €312 million, down 3.3% organically. The driver was Brazil's PAT1 reform, which capped the merchant discount rate at 3.6% on meal and food vouchers. That cap directly clipped Latin America operating revenue to €107 million, a 5.6% organic decline. Currency effects from the real and peso partially offset the drag, the company said.
The PAT1 overhaul is not a one-off. Pluxee has the operational framework in place and is rolling out efficiency levers. Still, the impact will spill into the first half of fiscal 2027. Management expects a return to sustainable, profitable growth only from the second half of fiscal 2027. Anyone holding the stock for the next 12 months needs to price in that delay.
Other segments tell a mixed story. Employee Benefits business volume issued rose 8% organically to €5.2 billion, supported by new client wins and high retention. Float revenue hit €42 million, up 2.8% organically, benefiting from elevated interest rates in some markets and higher investment yields. Other Products & Services remained under pressure. Operating revenue from that segment fell 14.3% organically to €31 million, reflecting the tail end of public benefit program changes in Continental Europe and ongoing restructuring in the UK and U.S.