Brazil judge overrules decisions suspending changes to meal voucher system
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The logo of Pluxee, the voucher and benefits unit of French catering and food services group Sodexo, is seen at the company headquarters in Paris, France, February 5, 2024. REUTERS/Sarah Meyssonnier
SAO PAULO, Feb 25 (Reuters) - A Brazilian judge sided with the government and overruled previous court decisions that had suspended changes to the meal voucher system for companies including Pluxee and Edenred's Ticket, the ruling showed on Tuesday.
Brazil's government had issued a decree in November with new regulations for the meal voucher market, capping fees that merchants pay voucher providers. But local courts this year granted the main companies in the sector orders suspending the effects of the new system.
The office of Brazil's solicitor general welcomed Tuesday's ruling, saying in a statement that companies must resume complying with the new rules immediately.
Shares of Edenred and Pluxee fell around 4% in early Wednesday trading in Paris.
Edenred is preparing to apply the decree once it receives a formal notification, it said in a statement, but added it reserved the right to appeal the decision. The company, which had filed an injunction against the decree in January, said it did not expect a decision on its legal merits before the end of 2026.
It reiterated a November guidance that, assuming the implementation of the decree, forecast an organic decline of 8-12% in its 2026 core earnings. It also confirmed its targets to 2028.
Pluxee did not immediately respond to a request for comment. In January, finance chief Stéphane Lhopiteau said the company expected a 50% revenue drop in Brazil by next year.
Ticket and Pluxee, together with local firms Alelo and VR - also impacted by the new decision - control about 85% of the Brazilian market.
(Reporting by Andre Romani and Alessandro Parodi, Editing by Iñigo Alexander, Brendan O'Boyle and Milla Nissi-Prussak)
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