By Federica Mileo and Diana Mandia
(Reuters) -French voucher and benefit cards provider Edenred (EPA:EDEN) on Thursday hiked its 2022 core profit target for a second time this year, as companies continue to improve employee benefits in response to rising costs.
The stock was up 2.2% at 0900 GMT, among the best performers of France's SBF 120 index.
Companies like Edenred stand to benefit from higher inflation as it lead to higher maximum face values of employee benefit cards.
In France, the government raised the daily limit on meal vouchers to 25 euros from 19 euros as of Oct. 1 and last month lifted by 4% the tax-free ceiling for employers' vouchers.
"Even if companies do not use all the legal maximum exemptions set by the different countries, an increase in this maximum invariably results in a progressive increase in the value granted by companies to their employees," finance chief Julien Tanguy told reporters.
Asked about potential negative impact from slowing global growth, he said the group had not seen a recession yet.
Edenred, which provides meal and commuter vouchers, fuel cards and manages employee engagement platforms, said it expected good sales momentum to continue, as companies try to protect employees' purchasing power.
The group, known for its "Ticket Restaurant" vouchers, now forecasts its earnings before interest, tax, depreciation and amortisation (EBITDA) to come between 810 million and 840 million euros ($791 million and $821 million) this year.
The company last raised its EBITDA forecast in July to 770-820 million euros.
"The current macroeconomic environment continues to favour Edenred", Berenberg's analyst Stuart Gordon said.
The group reported an operating revenue of 484 million euros in the third quarter, beating analysts' 465 million euro estimate in a company-provided consensus.