- H1 2021-2022 revenue: €281m (+1%)
- EBITDA1 steady at €23m with an EBITDA margin of
8.2%
- Cash flow2 stable at €22m (vs. €23m for the same period last
year)
- FY 2022-2023 revenue target moved forward one year to
reflect uncertainties related to changes in PlanetArt's customer
acquisition methods (with no impact on the EBITDA margin
target)
This press release presents Group consolidated
figures prepared on the basis of IFRS that were subject to a
limited review.
“With €281m in revenue and €23m in EBITDA in H1 2021-2022, we
were successful in stabilizing earnings despite the unprecedented
context, particularly for PlanetArt, impacted by the combined
effects of the end of lockdown measures, supply chain constraints
that continued during the year-end holiday season and a structural
transformation in customer acquisition channels. However, by
leveraging its strategic strengths based on a fabless3,
multi-channel and global approach supported by significant
expertise in digital marketing, the division was able to overcome
these challenges and outperform its competitors in terms of revenue
growth, while maintaining its EBITDA margin.
With revenue of €51m and EBITDA of €8m, up 22% and 56%
respectively over the period, Avanquest continues to benefit from
its move to a SaaS4 subscription-based business model. On this
basis, the virtuous circle of subscription renewals is now boosting
both its growth and profitability.
Finally, our IoT business has taken advantage of the improved
COVID-19 situation to accelerate commercial deployments and expand
its network of channel partners. World-class leaders like Sodexo
are continuing to join our network, highlighting the interest of
manufacturers in this maturing sector.
This first half performance offered further confirmation of the
value of our diversified approach within a global context that
nevertheless calls for considerable caution and has led us to
postpone our medium-term revenue target.
Finally, it is not possible for me to speak during this period
of renewed armed conflict in Europe, without having a thought for
our Ukrainian partners and subcontractors. While Claranova has a
limited commercial exposure to Ukraine or Russia, our Avanquest
division has maintained close relationships for years with IT
development and customer support partners based there. Our efforts
are focused on supporting them on a daily basis during this tragic
period," declared Pierre Cesarini, CEO of Claranova.
Regulatory News:
Claranova (Paris:CLA) reported revenue for H1 2021-2022
(July-December 2021) of €281m, up 1% at actual exchange rates and
down 2% at constant exchange rates (-6% like-for-like5).
Despite an unprecedented and challenging environment, Claranova
has maintained the level of its H1 2021-2022 operating profit.
Group EBITDA amounted to €23m in the period, in line with the level
of H1 2020-2021, which had already registered a twofold increase.
The Group's EBITDA margin also remained stable at 8.2%, compared
with 8.3% in H1 2020-2021.
With €152m in cash and cash equivalents and an increase in
financial debt6 to €150m, the Group’s net debt amounted to -€2m at
December 31, 2021 after taking into account the OCEANES bond issue
and the buyout of the minority interests in the Avanquest division
in respectively August and November 2021.
Claranova is still anticipating a gradual rebound in PlanetArt's
growth over the next few quarters, after a phase devoted to
restructuring its customer acquisition channels in response to the
introduction of Apple's iOS 14.5, along with continuing momentum
for Avanquest. However, lower growth in the period by the
personalized e-commerce division is expected to delay the
achievement of the Group's medium-term objectives. Claranova is
thus now expecting to reach the €700m revenue milestone at the end
of FY 2023-2024.
The Group maintains its target for an EBITDA margin above 10% in
FY 2022-20237.
In €m
H1 2021-2022
H1 2020-2021
Change
Revenue
281
278
+1%
EBITDA
23
23
-
EBITDA margin (% of Revenue)
8.2%
8.3%
-0.1pt
Recurring Operating Income
20
21
-4%
Net Income
4
11
-59%
Net cash flow from (used in) operating
activities
52
40
+31%
Of which Cash flow from operations before
changes in working capital
22
23
-3%
Closing cash and cash
equivalents
152
118
+29%
PlanetArt: personalized e-commerce remains resilient in an
unprecedented market context
PlanetArt reported revenue of €227m, down 3% at actual exchange
rates and 6% at constant exchange rates (-10% like-for-like)
And while this pace of revenue growth is considerably lower than
the division’s historical levels, it remains higher than that of
its competitors and was achieved during a period of unprecedented
market conditions. H1 2021-2022 was clearly impacted by the
cumulative effects of post-lockdown impacts on online consumption,
additional pressure on supply chains during year-end holiday
period, and new constraints on targeted marketing within Apple's
iOS ecosystem since the rollout of its App Tracking Transparency
feature.
However, by combining its mostly fabless, multi-channel and
global approach with the digital marketing expertise of its teams,
PlanetArt is continuing to strengthen its market position. The work
carried out in the first half to redirect and diversify the
division’s marketing investments helped PlanetArt’s revenue return
to a level largely back on track in the second quarter (-1%,
compared to -8% in the first quarter at actual rates).
New marketing initiatives launched in H1 2021-2022 helped
contain the overall increase of variable costs (customer
acquisition, logistics and raw materials) and partially offset the
rise in the division's embedded fixed costs. PlanetArt preserved
the profitability of its businesses with €17m in EBITDA, or an
EBITDA margin of 7.6% compared to 8.3% for the previous period.
In €m
H1 2021-2022
H1 2020-2021
Change
Revenue
227
234
-3%
EBITDA
17
19
-11%
EBITDA margin (% of Revenue)
7.6%
8.3%
-0.7pt
Avanquest: positive momentum initiated in prior periods
remains on track
With €51m in revenue,
Avanquest passed the symbolic €50m milestone in H1 2021-2022. The
software publishing division thus registered growth in revenue of
22% in actual rates in the first half (+17% like-for-like). Each
software segment (PDF, Security, Photo) has contributed to this
performance, with growth rates exceeding 20% for all three
verticals.
This positive momentum across
the entire software portfolio confirms the success of the shift in
business model implemented over the last few years. This growth is
accompanied by the increasing contribution of recurring revenue,
both from the acquisition of new subscribers and the renewal of
existing subscriptions acquisition, which now stands at 60%8 and
reinforces visibility for the future growth and margins of these
activities.
This increase in recurring
revenue also contributes to an improvement in operating
profitability. The division achieved EBITDA of €8m, an increase of
56%, with an EBITDA margin of 14.7% compared to 11.5% for the
previous period. This virtuous circle, which reinforces both
Avanquest's growth and profitability, should help the division
gradually raise the level of its standards in line with the best
practices of the SaaS industry.
In €m
H1 2021-2022
H1 2020-2021
Change
Revenue
51
42
+22%
EBITDA
8
5
+56%
EBITDA margin (% of Revenue)
14.7%
11.5%
+ 3.2 pts
myDevices: investments ramped up to accelerate commercial
deployments
myDevices reported revenue of €2.3m during the period, an
increase of 5% at actual exchange rates (3% like-for-like).
Adjusted for non-recurring items related to the partnership with
the US carrier T-Mobile, recognized in the prior year’s first half,
revenue in the first half grew 49% (46% like-for-like).
This performance reflects the acceleration of commercial
rollouts that benefited from easing of COVID-19 restrictions in the
division's main business sectors. In particular, at December 31,
2021, ARR (Annual Recurring Revenue) stood at €1.8m8, up 82% from
one year earlier at constant exchange rates.
myDevices has supported the acceleration of its commercial
deployments through new investments over H1 2021-2022. In
particular, the division has bolstered its sales teams to support
this expansion. The IoT division’s EBITDA registered a loss of
€1.6m, up from a €1.0m loss one year earlier.
In €m
H1 2021-2022
H1 2020-2021
Change
Revenue
2.3
2.2
+5%
EBITDA
(1.6)
(1.0)
+63%
EBITDA margin (% of Revenue)
-72.2%
-46.5%
-25,7 pts
Group capital resources and cash flow amounts
Claranova ended H1 2021-2022 with cash and cash equivalents of
€152m, up €62m from June 30, 2021, including €4m from net foreign
exchange differences during the period. This increase reflected net
inflows from operating activities of €52m, including €22m from
operations and €35m from changes in working capital requirements in
relation to June 30, 2021.
This increase in working capital reflects the seasonal nature of
PlanetArt’s businesses (significant activity during year-end
festivities generating an exceptional peak in cash flow at the end
of December) and its specific business model (B2C9 distribution
with negative working capital requirements).
Net cash flows used in investing activities represented an
outflow of €61m at December 31, 2021. This includes the impact of
the cash payment for the acquisition of the minority interests in
the Avanquest division finalized in early November 2021
representing an outflow of €48m, and to a lesser extent the
acquisition of I See Me! by the PlanetArt division in July 2021 as
well as a joint investment in myDevices with Semtech.
Net cash flows from financing activities represented an inflow
of €66m at December 31, 2021 Financing activities that impacted the
Group's cash position included the strategic investment announced
in August 2021 that included a €50m convertible bond issue
(OCEANES) by the Group, and a reserved capital increase of €15m.
Following the acquisition of certain assets of I See Me!, PlanetArt
also obtained additional bank financing of US$11m in H1
2021-2022.
In €m
H1 2021-2022
H1 2020-2021
Cash flow from operations before changes
in working capital
22
23
Change in working capital requirements
(WCR)10
35
21
Taxes and net interest paid
(4)
(4)
Net cash flow from (used in) operating
activities
52
40
Net cash flow from (used in) investing
activities
(61)
(4)
Net cash flow from (used in) financing
activities
66
3
Change in cash11
58
38
Opening cash position
90
83
Effects of exchange rate fluctuations on
cash and cash equivalents
4
(3)
Closing cash position
152
118
Financial position, borrowing conditions and financing
structure
Claranova’s financial position remains sound with a cash
position of €152m and financial debt (excluding IFRS 16 impact on
the recognition of leases) of €150m compared to respectively €90m
and €65m at June 30, 2021.
The increase in the Group's financial debt includes the €50m
OCEANES convertible bond issue, the issuance of €24m in promissory
notes related to the buyout of minority interests in the Avanquest
division, and US$11m in new bank financing obtained by the
PlanetArt division for the acquisition of certain assets of I See
Me!
On that basis, the Group's net debt at December 31, 2021
amounted to €2m, down from net debt of €25m at June 30, 2021.
In €m
12/31/2021
06/30/2021
Bank debt
23
14
Bonds
98
49
Other financial liabilities
27
2
Accrued interest
2
0
Total financial liabilities12
150
65
Available unpledged cash
152
90
Net debt
(2)
(25)
Governance
The Board of Directors duly noted the resignation of Mr. Chahram
Becharat as a Director of the Company and, in consequence, from his
duties as member of the Appointments and Compensation Committee.
The Board would like to thank Mr. Becharat for his constructive
participation in the work of the Board and the Committee during
term of office.
Availability of the Interim Financial Report
Claranova's Interim Financial Report for the six-month period
ended December 31, 2021 was filed with the French Autorité des
Marchés Financiers (AMF) on March 30, 2022.
Claranova's Interim Financial Report and the presentation on its
H1 2021-2022 results are available on the Company's website:
https://www.claranova.com/investisseurs/publications-financieres/
Financial calendar: May 10, 2022: Q3
2021-2022 revenue
About Claranova:
As a diversified global technology company, Claranova manages
and coordinates a portfolio of majority interests in digital
companies with strong growth potential. Supported by a team
combining several decades of experience in the world of technology,
Claranova has acquired a unique know-how in successfully turning
around, creating and developing innovative companies.
With average annual growth of more than 40% over the last three
years and revenue of €472m in FY 2020-2021, Claranova has proven
its capacity to turn a simple idea into a worldwide success in just
a few short years. Present in 15 countries and leveraging the
technology expertise of nearly 800 employees across North America
and Europe, Claranova is a truly international company, with 95% of
its revenue derived from international markets.
Claranova’s portfolio of companies is organized into three
unique technology activities operating in all major digital
sectors. Claranova stands out for its technological expertise in
personalized e-commerce, software publishing and the Internet of
Things, through its three business divisions, PlanetArt, Avanquest
and myDevices. These three technology platforms share a common
vision: empowering people through innovation by providing simple
and intuitive digital solutions that facilitate everyday access to
the very best of technology.
For more information on Claranova group:
https://www.claranova.com or
https://twitter.com/claranova_group
Disclaimer:
All statements other than statements of historical fact included
in this press release about future events are subject to (i) change
without notice and (ii) factors beyond the Company’s control.
Forward-looking statements are subject to inherent risks and
uncertainties beyond the Company’s control that could cause the
Company’s actual results or performance to be materially different
from the expected results or performance expressed or implied by
such forward-looking statements.
Appendices
Appendix 1: Consolidated Income Statement
In €m
H1 2021-2022
H1 2020-2021
Net revenue
280.5
277.8
Raw materials and purchases of goods
(84.4)
(91.0)
Other purchases and external expenses
(127.1)
(119.1)
Taxes, duties and similar payments
(0.4)
(0.4)
Employee expenses
(35.2)
(32.4)
Depreciation, amortization and provisions
(net of reversals)
(4.9)
(4.1)
Other recurring operating income and
expenses
(8.8)
(10.1)
Recurring Operating Income
19.9
20.8
Other operating income and expenses
0.3
(3.3)
Operating Profit
20.2
17.5
Net financial income (expense)
(10.5)
(3.5)
Tax expense
(5.4)
(3.5)
Net Income
4.3
10.5
Net income attributable to owners of
the Company
3.0
8.5
Appendix 2: Earnings per share
(In €)
H1 2021-2022
H1 2020-2021
Average number of shares outstanding*
(in units)
42,616,876
39,200,753
Average number shares outstanding after
potential dilution (in units)
46,863,760
39,905,818
Net income per share
€ 0.10
€ 0.27
Net income per share after potential
dilution
€ 0.09
€ 0.26
Adjusted net income per share
€ 0.20
€ 0.36
Adjusted net income per share after
potential dilution
€ 0.19
€ 0.36
Net income per share attributable to
owners of the Company
€ 0.07
€ 0.22
Net income per share attributable to
owners of the Company after potential dilution
€ 0.06
€ 0.21
Adjusted net income per share attributable
to owners of the Company
€ 0.17
€ 0.31
Adjusted net income attributable to owners
of the Company after dilution
€ 0.16
€ 0.30
Appendix 3: Calculation of EBITDA and Adjusted net
income
EBITDA and Adjusted net income are non-GAAP measures and should
be viewed as additional information. They do not replace Group IFRS
aggregates. Claranova’s Management considers these measures to be
relevant indicators of the Group’s operating and financial
performance. It presents them for information purposes, as they
enable most non-operating and non-recurring items to be excluded
from the measurement of business performance.
The transition from Recurring Operating Income to EBITDA is as
follows:
In €m
H1 2021-2022
H1 2020-2021
Recurring Operating Income
19.9
20.8
Impact of IFRS 16 on leases expenses
(2.0)
(1.8)
Share-based payments, including social
security expenses
0.4
0.0
Depreciation, amortization and
provisions
4.9
4.1
EBITDA
23.1
23.1
The reconciliation of Net Income to Adjusted Net income is as
follows:
In €m
H1 2021-2022
H1 2020-2021
Net Income
4.3
10.5
IFRS 16 impact on Net income
0.0
0.2
Share-based payments, including social
security expenses
0.4
0.0
Fair value remeasurement of financial
instruments
4.3
0.1
Other operating income and expenses
(0.3)
3.3
Adjusted net income
8.7
14.2
Appendix 4: Simplified Statement of Financial
Position
Claranova’s total assets increased from €224.9m to €312.2m
between June 30, 2020 and December 31, 2020. This €87.3m increase
reflects mainly the significant growth in cash and cash equivalents
of €61.7m generated by the Group’s operations in the first half in
relation to June 30, 2021. The increase in liabilities is largely
the result of the increase in financial debt and the seasonal
effect of PlanetArt's activities as reflected by a sharp rise in
trade payables at the end of the calendar year.
Group balance sheet highlights:
In €m
12/31/2021
06/30/2020
Goodwill
75.2
64.4
Other non-current assets
27.6
25.1
Right-of-use lease assets
14.6
7.0
Current assets (excl. Cash and cash
equivalents)
42.8
38.0
Cash and cash equivalents
152.0
90.4
Total assets
312.2
224.9
Equity
35.6
83.1
Financial liabilities
150.2
65.2
Lease liabilities
15.2
7.5
Other non-current liabilities
5.2
4.5
Other-current liabilities
106.0
64.6
Total equity and liabilities
312.2
224.9
Shareholders' equity decreased by €47.6m between June 30 and
December 31, 2021, mainly in response to the recognition of the
buyout of Canadian minority interests during the period.
On the one hand, shareholders' equity was reduced by a total of
€99.9m linked to the buyout of Canadian minority shareholders. On
the other hand, this negative impact was partly offset by inflows
from capital increases during the period totaling €42.6m, with the
balance resulting from translation differences and other
transactions with shareholders, including the myDevices Inc.
capital increase. Shareholders are invited to refer to Paragraph
2.4 of Chapter 2 of the interim Financial Report for further
details.
___________________________ 1 EBITDA (earnings before interest,
taxes, depreciation and amortization) is a non-GAAP aggregate used
to measure the operating performance of the businesses. It is equal
to Recurring Operating Income before depreciation, amortization and
share-based payments including related social security expenses and
the IFRS 16 impact on the recognition of leases. Details on the
calculation of EBITDA are provided in the Appendix to this
presentation. 2 Cash flow from operations before changes in working
capital. 3 A business model that involves outsourcing production to
third-party partners 4 Software as a Service. 5 Like-for-like
(organic) growth equals the increase in revenue at constant
consolidation scope and exchange rates. 6 Excluding the IFRS 16
impact on the accounting of leases 7 EBITDA as a percentage of
revenue. 8 Based on management reporting 9 B2C or
Business-to-Consumer refers to the process where businesses sell
products and services directly to individual consumers. 10 Change
in Working Capital Requirements in relation to the opening cash for
the fiscal period. 11 Change in cash in relation to the opening
cash position for the fiscal period. 12 Excluding lease liabilities
resulting from the adoption of IFRS 16.
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ANALYSTS - INVESTORS +33 1 41 27 19 74
ir@claranova.com
FINANCIAL COMMUNICATION +33 1 75 77 54 65
ir@claranova.com
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