In Europe , Asia and USA, the organic revenue decline was -18.0%, with the third quarter heavily impacted by Covid-19, interrupting paper voucher production in most countries during lockdown and with restaurants closed, impacting merchant reimbursements. In the fourth quarter, the trend improved in Europe as restaurants reopened and there was a catch-up in paper voucher issuance and a move to digital solutions. This was slightly off set by a downturn in India due to the spread of the pandemic.
In Latin America, the decline was -19.9%, with issue volumes deteriorating through the second half, as the pandemic spread, and amplifi ed by falling interest rates and a very competitive environment in Brazil, particularly in the last quarter. Several markets in the region remained positive, helped by strong sales of Covid-related public and private benefits.
Fiscal 2020 Underlying operating profit was 569 million euro, down -52.6% relative to the 1.2 billion euro, generated in Fiscal 2019. The Underlying operating margin was 2.9%, down -260 bps or -240 bps excluding the currency mix effect. The On-site Services margin was down -240 bps at 2.6% and the Benefits & Rewards Services margin at 26.2% was down -480 bps, or -300 bps excluding the currency mix effect of the weakness of the Brazilian real principally.
| (in millions of euro) | UNDERLYING OPERATION PROFIT FISCAL 2020
|
DIFFERENCE
|
DIFFERENCE (EXCLUDING CURRENCY EFFECT) | UNDERLYING OPERATING PROFIT MARGIN 2020 | DIFFERENCE IN MARGIN
|
DIFFERENCE IN MARGIN (EXCLUDING CURRENCY MIX EFFECT)
|
|---|---|---|---|---|---|---|
| Business & Administrations
|
Business & Administrations UNDERLYING OPERATION PROFIT FISCAL 2020 110 |
Business & Administrations DIFFERENCE - 77.5% |
Business & Administrations DIFFERENCE (EXCLUDING CURRENCY EFFECT) - 74.8% |
Business & Administrations UNDERLYING OPERATING PROFIT MARGIN 2020 1.1% |
Business & Administrations DIFFERENCE IN MARGIN - 310 pbs |
Business & Administrations DIFFERENCE IN MARGIN (EXCLUDING CURRENCY MIX EFFECT) - 300 pbs |
| Healthcare & Seniors
|
Healthcare & Seniors UNDERLYING OPERATION PROFIT FISCAL 2020 293 |
Healthcare & Seniors DIFFERENCE - 14.4% |
Healthcare & Seniors DIFFERENCE (EXCLUDING CURRENCY EFFECT) - 15.2% |
Healthcare & Seniors UNDERLYING OPERATING PROFIT MARGIN 2020 6.1% |
Healthcare & Seniors DIFFERENCE IN MARGIN - 50 pbs |
Healthcare & Seniors DIFFERENCE IN MARGIN (EXCLUDING CURRENCY MIX EFFECT) - 60 pbs |
| Education | Education UNDERLYING OPERATION PROFIT FISCAL 2020 75 |
Education DIFFERENCE - 65.7% |
Education DIFFERENCE (EXCLUDING CURRENCY EFFECT)- 66.7% |
Education UNDERLYING OPERATING PROFIT MARGIN 20202.2% |
Education DIFFERENCE IN MARGIN - 290 pbs |
Education DIFFERENCE IN MARGIN (EXCLUDING CURRENCY MIX EFFECT) - 300 pbs |
| On-site Services
|
On-site Services
UNDERLYING OPERATION PROFIT FISCAL 2020 478 |
On-site Services
DIFFERENCE - 54.5% |
On-site Services
DIFFERENCE (EXCLUDING CURRENCY EFFECT) - 53.7% |
On-site Services
UNDERLYING OPERATING PROFIT MARGIN 2020 2.6% |
On-site Services
DIFFERENCE IN MARGIN - 240 pbs |
On-site Services
DIFFERENCE IN MARGIN (EXCLUDING CURRENCY MIX EFFECT) - 240 pbs |
| Benefits & Rewards Services |
Benefits & Rewards Services UNDERLYING OPERATION PROFIT FISCAL 2020 202 |
Benefits & Rewards Services DIFFERENCE - 26.9% |
Benefits & Rewards Services DIFFERENCE (EXCLUDING CURRENCY EFFECT) - 16.6% |
Benefits & Rewards Services UNDERLYING OPERATING PROFIT MARGIN 2020 26.2% |
Benefits & Rewards Services DIFFERENCE IN MARGIN - 480 pbs |
Benefits & Rewards Services DIFFERENCE IN MARGIN (EXCLUDING CURRENCY MIX EFFECT) - 300 pbs |
| Corporate expenses & Intragroup eliminations
|
Corporate expenses & Intragroup eliminations UNDERLYING OPERATION PROFIT FISCAL 2020 (111) |
Corporate expenses & Intragroup eliminations DIFFERENCE + 12.2% |
Corporate expenses & Intragroup eliminations DIFFERENCE (EXCLUDING CURRENCY EFFECT) + 12.4% |
Corporate expenses & Intragroup eliminations UNDERLYING OPERATING PROFIT MARGIN 2020
|
Corporate expenses & Intragroup eliminations DIFFERENCE IN MARGIN
|
Corporate expenses & Intragroup eliminations DIFFERENCE IN MARGIN (EXCLUDING CURRENCY MIX EFFECT)
|
| UNDERLYING OPERATING PROFIT |
UNDERLYING OPERATING PROFIT UNDERLYING OPERATION PROFIT FISCAL 2020 569 |
UNDERLYING OPERATING PROFIT DIFFERENCE - 52.6% |
UNDERLYING OPERATING PROFIT DIFFERENCE (EXCLUDING CURRENCY EFFECT) - 49.6% |
UNDERLYING OPERATING PROFIT UNDERLYING OPERATING PROFIT MARGIN 2020 2.9% |
UNDERLYING OPERATING PROFIT DIFFERENCE IN MARGIN - 260 pbs |
UNDERLYING OPERATING PROFIT DIFFERENCE IN MARGIN (EXCLUDING CURRENCY MIX EFFECT) - 240 pbs |
While first half Fiscal 2020 margins were flat year-on-year at 5.9%, second half margins were impacted heavily by the fl ow-through of the revenue decline due to Covid-19. The fl ow-through in underlying operating profi t was 20.4%, or 21.2% at constant rates. As a result, the second half margin was -1.5%, or -0.9% excluding the currency mix impact.
| UNDERLYING OPERATING PROFIT
|
|||||
|---|---|---|---|---|---|
| H1 FISCAL 2020
|
H2 FISCAL 2020
|
||||
| (in millions of euro) | UOP |
MARGIN |
UOP
|
MARGIN
|
FLOW-THROUGH
|
| Business & Administrations
|
Business & Administrations UNDERLYING OPERATING PROFIT 245 |
4.0% |
(135) |
- 3.3% |
22.6% |
| Healthcare & Seniors
|
Healthcare & Seniors UNDERLYING OPERATING PROFIT 160 |
6.3% |
133 |
5.8 % |
12.3% |
| Education | Education UNDERLYING OPERATING PROFIT 211 |
8.4% |
(136) |
- 14.3% |
15.5% |
| On-site Services |
On-site Services UNDERLYING OPERATING PROFIT 616 |
5.5% |
(138) |
- 1.9% |
19.3% |
| Benefits & Rewards Services |
Benefits & Rewards Services UNDERLYING OPERATING PROFIT 134 |
30.2% |
69 |
20.8% |
62.3% |
| Corporate expenses & Intragroup eliminations
|
Corporate expenses & Intragroup eliminations UNDERLYING OPERATING PROFIT (64) |
|
(47) |
|
|
| UNDERLYING OPERATING PROFIT |
UNDERLYING OPERATING PROFIT UNDERLYING OPERATING PROFIT 685 |
5.9% |
(116) |
- 1.5% |
20.4% |
At current rates, Fiscal 2020 On-site Services underlying operating profit was down -54.5% and the margin fell to 2.6%, down 240 bps. This was made up of a solid operating margin of 5.5% in the first half and a negative margin of 1.9% in the second half. The flow-through was 19.3%.
Business & Administrations
underlying operating profit decreased by -77.5% and the operating margin was down -310 bps at 1.1%. This decline in margins is entirely attributed to the Covid-related decline in revenues. The flow-through in the second half was 22.6%. Where sites were closed, food stocks were transferred to other entities,
