Cegedim: Revenue and EBITDA both increased in the first half of
2024
First-half financial information at June 30,
2024
IFRS - Regulated information - Audited
Cegedim: Revenue and EBITDA both
increased in the first half of 2024
-
Revenue grew 6.0% as reported and 4.6% LFL to
€319.0 million
-
EBITDA rose 6.9% to €52.2
million
-
Recurring operating income(1) (REBIT) fell 3.4% to
€10.3 million
Boulogne-Billancourt, France, September
26, 2024, after the market close
Cegedim generated
consolidated H1 2024 revenues of €319.0 million, a 6.0%
year-on-year increase as reported, and EBITDA of €52.2 million, a
€3.4 million or 6.9% increase. Recurring
operating income fell €0.4 million, or 3.4%, to
€10.3 million.
|
|
H1 2024 |
H1 2023 |
Change |
|
|
in €m |
(in %) |
(in €m) |
(in %) |
(in €m) |
in % |
|
Revenues |
319.0 |
100.0% |
301.0 |
100.00% |
18.0 |
6.0% |
|
EBITDA(1) |
52.2 |
16.4% |
48.8 |
+16.2% |
3.4 |
6.9% |
|
Depreciation & amortization |
-41.9 |
|
-38.1 |
|
-3.8 |
-9.8% |
|
Recurring operating
income(1) |
10.3 |
3.2% |
10.7 |
3.6% |
-0.4 |
-3.4% |
|
Other non-recurring operating income and
expenses(1) |
-2.6 |
|
-1.4 |
|
-1.2 |
-88.8% |
|
Operating income |
7.7 |
2.4% |
9.3 |
3.1% |
-1.6 |
-17.1% |
|
Financial result |
-5.0 |
|
-5.6 |
|
0.6 |
10.8% |
|
Total tax |
-2.9 |
|
-12.4 |
|
9.5 |
76.8% |
|
Share of net profit (loss) of equity method companies |
0.1 |
|
-0.5 |
|
0.6 |
110.3% |
|
Consolidated net profit |
-0.1 |
0.0% |
-9.2 |
-3.1% |
9.1 |
99.0% |
|
Non-controlling interests |
-0.7 |
|
-0.4 |
|
-0.3 |
-69.3% |
|
Group share |
0.6 |
0.2% |
-8.8 |
-2.9% |
9.4 |
107.2% |
|
Recurring earnings per share(2) (in euros) |
0.0 |
- |
-0.6 |
- |
|
|
|
Earnings per share (in euros) |
0.0 |
- |
-0.6 |
- |
|
|
Consolidated revenues rose
€18.0 million, or 6.0%, to €319.0 million in H1
2024 compared with €301.0 million in 2023. The positive scope
effect of €3.7 million, or 1.2%, was attributable to the first-time
consolidation in Cegedim’s accounts of Visiodent starting
March 1, 2024. The positive currency impact was €0.5 million, or
0.2%, chiefly owing to appreciation of the pound sterling against
the euro. In like-for-like terms(2), revenues rose 4.6%
in the first half, in line with the Group’s announced outlook. The
performance was attributable to seasonality and the non-recurrence
of Ségur public health investments in 2024.
EBITDA(1) rose
€3.4 million between the first half of 2023 and 2024, or 6.9%. The
improvement is the result of good management of personnel costs and
external costs, in moderate growth as a percentage of revenues even
though the amount of R&D capitalization fell and the Group had
an additional quarter of start-up costs for its biggest BPO
contract.
-------------
(1) Alternative performance indicator See
pages 112-113 of the 2023 Universal Registration Document.
(2) At constant scope and exchange
rates.
Depreciation and amortization
expenses rose €3.7 million, chiefly due to a €3.1 million
increase in R&D amortization (€22.7 million at June 30, 2024
compared with €19.7 million a year earlier) driven by development
efforts in recent years.
Recurring operating
income(1) fell €0.4 million to €10.3 million in
H1 2024 compared with €10.7 million in 2023.
It amounted to 3.2% of 2024 revenue compared with 3.6% in 2023. The
fine EBITDA performance did not drop through to recurring operating
income solely because of higher depreciation and amortization.
Excluding the impact of Ségur subsidies and at comparable levels of
amortization of capitalized R&D, Recurring operating income
would have more than doubled.
Other non-current operating
costs(1) amounted to €2.6
million in H1 2024 compared with €1.4 million in the same period in
2023. The principal items in 2024 were
restructuring costs related to the Group’s decision to refocus
software for doctors in the UK on Scotland and fees related to the
Visiodent acquisition.
Taking these elements into account,
operating income came to €7.7 million at June 30,
2024, compared with €9.3 million a year earlier.
Financial result was a loss of
€5.0 million compared with a €5.6 million loss in H1 2023. Dividend
income over the period more than offset the increase in the cost of
financial debt.
Tax was back to normal levels
at €2.6 million in H1 2024 compared with €12.4 million in H1 2023.
As a reminder, in 2023 the Group made a non-cash adjustment that
caused it to record a deferred tax charge corresponding to the
downward revision of its estimated remaining deferred tax
assets.
Analysis of business trends by
division
|
in millions of euros |
Total |
Software & Services |
Flow |
Data & Marketing |
BPO |
Cloud & Support |
|
Revenue |
|
|
|
|
|
|
2023 reported
2023 reclassified (*) |
301.0
301.0 |
161.5
150.6 |
48.2
46.8 |
54.9
54.9 |
32.8
32.8 |
3.5
15.8 |
|
2024 |
319.0 |
152.1 |
49.5 |
59.3 |
39.9 |
18.1 |
|
Change |
6.0% |
1.0% |
5.8% |
8.0% |
21.6% |
14.5% |
|
|
|
|
|
|
|
|
|
Recurring operating income |
|
|
|
|
|
|
2023 reported
2023 reclassified (*) |
10.7
10.7 |
-2.0
-2.5 |
5.6
5.2 |
6.6
6.6 |
1.4
1.4 |
-0.9
0.0 |
|
2024 |
10.3 |
-1.4 |
5.9 |
5.3 |
1.9 |
-1.3 |
|
Change |
-3.4% |
42.4% |
12.8% |
-19.8% |
36.0% |
na |
|
|
|
|
|
|
|
|
Recurring operating margin (as a % of
revenues)
2023 reported |
3.6% |
-1.2% |
11.7% |
11.9% |
4.3% |
-24.7% |
|
2023 reclassified (*) |
3.6% |
-1.7% |
11.1% |
11.9% |
4.3% |
0.3% |
|
2024 |
3.2% |
-1.0% |
+11.8% |
8.9% |
4.8% |
-7.0% |
|
|
|
|
|
|
|
|
(*) As of January 1, 2024, our Cegedim
Outsourcing and Audiprint subsidiaries—which were previously housed
in the Software & Services division—as well as BSV—formerly of
the Flow division—have been moved to the Cloud & Support
division in order to capitalize on operating synergies between
cloud activities and IT solutions integration.
-
Software & Services: H1 2024 revenues posted a
€1.5 million increase, and recurring operating income
(REBIT)(1) improved by €1.1 million to a loss of €1.4
million, compared with a €2.5 million loss a year earlier.
-------------
(1) Alternative performance indicator See
pages 112-113 of the 2023 Universal Registration Document.
|
Software & Services |
First half |
Change
2024 / 2023
|
|
in millions of euros |
2024 |
2023 |
|
Revenues |
152.1 |
150.6 |
1.5 |
1.0% |
|
Cegedim Santé |
38.9 |
39.8 |
-1.0 |
-2.4% |
|
Insurance, HR, Pharmacies, and other services |
86.7 |
84.5 |
2.3 |
2.7% |
|
International businesses |
26.5 |
26.3 |
0.2 |
0.6% |
|
Recurring operating
income(1) |
-1.4 |
-2.5 |
1.1 |
42.4% |
|
Cegedim Santé |
-1.6 |
-1.4 |
-0.2 |
-11.8% |
|
Insurance, HR, Pharmacies, and other services |
3.4 |
3.3 |
0.1 |
3.5% |
|
International businesses |
-3.3 |
-4.4 |
1.1 |
25.6% |
As expected, Cegedim Santé felt the
impact of increased R&D amortization (nearly €1 million) and a
demanding comparison owing to the non-recurrence of Ségur public
health investments (€4.4 million in H1 2023 revenues). The
consolidation of Visiodent starting March 1, 2024, only
partly offset those two items. Recurring operating income was
nearly stable over the first half, but EBITDA increased as
expected.
The other businesses in the division posted
REBIT(1) of €1.2 million. A solid performance by HR
solutions, which managed to keep costs under control during a
phase of strong growth, compensated for slower pharmacy
equipment sales post-Ségur. The international businesses
got a boost from dynamic sales for doctors in Spain and for
insurers in the UK. As we shift our operations, narrowing the focus
of our UK doctor’s software business to Scotland continued to
generate costs in the first half.
-
Flow: Revenues rose 5.8%, driven by Cegedim
e-business (process digitalization and electronic data flows),
both of whose businesses made positive contributions; by
Invoicing & Procurement, which rebounded in France and
is benefiting from the upcoming reform in Germany; and by
Healthcare Flow Management, which has dynamic new
offerings for hospitals to make their drug purchasing secure. Over
the same period, Third-party payer systems posted 3.6%
growth. As a result, REBIT(1) rose 12.8%, with
Third-party payer systems making the biggest contribution,
as Cegedim e-business recorded a large R&D
amortization charge.
-
Data & Marketing: Trends differed at this
division—Marketing is still going strong, with 20% growth,
whereas Data revenues fell 2.8%, particularly abroad.
REBIT(1) of €6.6 million was down €1.3 million over the
first half owing to high fixed costs in Data and increased
depreciation and amortization costs at C-Media (+€1
million) due to heavy investments in updating its digital signage
equipment.
-
BPO: Revenue jumped more than 21% over the first
half, buoyed notably by a full six months of the contract with
Allianz, which started on April 1, 2023, and is expected to
generate losses in the early years. But the division reined in
those losses so well that REBIT(1) rose €0.5 million in
the first half of 2024 to reach €1.9 million, also getting a boost
from the HR BPO and digitalization businesses.
-
Cloud & Support: H1 2024 REBIT(1)
was a loss of €1.3 million, compared with breakeven a year earlier.
The drop was due to surcharges related to the launch of a new cloud
offering and recruitment of new offshore teams.
---------
(1) Alternative performance indicator See
pages 112-113 of the 2023 Universal Registration Document.
Highlights
Apart from the items cited below, to the best of
the company’s knowledge, there were no events or changes during H1
2024 that would materially alter the Group’s financial
situation.
On February 15, 2024,
Cegedim Santé acquired Visiodent, a leading French
publisher of management software for dental practices and health
clinics. Visiodent launched the market’s first 100% SaaS solution,
Veasy, at a time when it was significantly expanding its
organization. Its users now include the country’s largest
nation-wide networks of health clinics, both cooperative and
privately owned, as well as several thousand dental surgeons in
private practice. Visiodent generated revenue of c.€10 million in
2023 and began contributing to Cegedim Group’s consolidation scope
on March 1, 2024.
Cegedim S.A. has been subject to two tax audits
since 2018, which have resulted in reassessments relating to the
use of tax-loss carryforwards contested by the tax authorities.
Cegedim, in consultation with its lawyers, believes that the
reassessments are unfounded in light of the applicable tax law and
jurisprudence. The Company has therefore taken, and continues to
take, all possible avenues of contestation.
As these appeals are not suspensive, Cegedim has
paid the amounts reassessed over time (a total of 23 million euros
already paid, including 10.9 million euros disbursed in February
2024). The remaining risk of future disbursements in respect of
this dispute thus amounts to only 5 million euros at June 30,
2024.
However, these disbursements have never given
rise to the recognition of a tax charge in the P&L, since the
Company considers that these sums will be recoverable at the end of
the proceedings (they are recognized as advances paid on the assets
side of the balance sheet). Should the outcome be unfavorable, a
charge of 28 million euros (of which 23 million has already been
paid) would have to be recorded in the consolidated income
statement.
In addition, the consolidated balance sheet must
show the future tax savings still realizable in respect of tax loss
carryforwards. This “deferred tax asset” amounted to 6.9 million
euros at June 30, 2024.
Should the outcome be unfavorable, the probability of realizing
these future savings would become nil, and an adjustment of 6.9
million euros would have to be recorded in the consolidated income
statement (with no cash impact, since these gains have never yet
been realized).
Consequently, the risk associated with this
dispute is not (or very little) in terms of cash, but rather in
terms of a possible adjustment to the consolidated income. The
maximum P&L adjustment risk is known: it amounts to 34.9
million euros and will remain unchanged. Only its breakdown varies
at each closing: the amount of disputed tax savings (28 million to
date) will continue to increase, and that of remaining future
savings (6.9 million to date) will decrease accordingly until
exhausted.
In the last quarter of 2023, the Company
referred this dispute to the administrative court, which is likely
to continue for several years.
Significant transactions and events post
June 30, 2024
Apart from the items cited below, to the best of
the company’s knowledge, there were no post-closing events or
changes after June 30, 2024, that would materially alter the
Group’s financial situation.
- New
financing arrangement
On July 31, 2024, Cegedim
announced that it had secured a new financing arrangement
consisting of a €230 million syndicated loan. The arrangement is
split into €180 million of lines drawn upon closing to refinance
the Group’s existing debt (RCF and Euro PP, which were to mature in
October 2024 and October 2025 respectively) and an additional,
undrawn revolving credit facility (RCF) of €50 million. This new
financing arrangement will bolster the Group’s liquidity and extend
the maturity of its debt to, respectively, 5 years (€30 million,
payments every six months); 6 years (€60 million, repayable upon
maturity); and 7 years (€90 million, repayable upon
maturity).
Outlook
Based on the currently available information,
the Group expects 2024
like-for-like(2)
revenue growth to be in the range of 5-8% relative to 2023.
Recurring operating income should continue to improve, following a
similar trajectory as in 2023.
Recurring operating
income(1) is expected to grow, notably
thanks to the initial returns on investments made in Cegedim Santé
and refocusing international activities.
These targets may need to be revised in the
event of unexpected developments (pandemic, etc.) and/or a
significant worsening of geopolitical and macroeconomic risks. The
Group reiterates that it has no activities or exposed assets in
Russia or Ukraine.
---------------
The Audit Committee met on September 25, 2024.
The Board of Directors, chaired by Jean-Claude Labrune, met on
September 26, 2024, and approved the consolidated financial
statements at June 30, 2024, of which the statutory auditors have
conducted a limited review. The Interim Financial Report will be
available in a few days’ time, in French and in English, on our
website.
-
WEBCAST ON SEPTEMBER 26, 2024, AT 6:15 PM (PARIS
TIME)
|
|
The webcast is available at:
www.cegedim.fr/webcast |
The first-half 2024 results presentation is available:
- On the website:
https://www.cegedim.fr/finance/documentation/Pages/presentations.aspx
|
2024 financial calendar
|
2024 |
October 24 after the close |
Q3 2024 revenues |
Financial calendar:
https://www.cegedim.fr/finance/agenda/Pages/default.aspx
Disclaimer
This press release is available in French and in English.
In the event of any difference between the two versions, the
original French version takes precedence. This press release may
contain inside information. It was sent to Cegedim’s authorized
distributor on September 26, 2024, no earlier than 5:45 pm Paris
time.
The figures cited in this press release include guidance on
Cegedim's future financial performance targets. This
forward-looking information is based on the opinions and
assumptions of the Group’s senior management at the time this press
release is issued and naturally entails risks and uncertainty. For
more information on the risks facing Cegedim, please refer to
Chapter 7, “Risk management”, section 7.2, “Risk factors and
insurance”, and Chapter 3, “Overview of the financial year”,
section 3.6, “Outlook”, of the 2023 Universal Registration Document
filled with the AMF on April 3, 2024, under number
D.24-0233.
About Cegedim:
Founded in 1969, Cegedim is an innovative technology and services
group in the field of digital data flow management for healthcare
ecosystems and B2B, and a business software publisher for
healthcare and insurance professionals. Cegedim employs more than
6,500 people in more than 10 countries and generated revenue of
€616 million in 2023.
Cegedim SA is listed in Paris (EURONEXT:
CGM).
To learn more please visit: www.cegedim.fr
And follow Cegedim on X: @CegedimGroup, LinkedIn, and Facebook.
Aude Balleydier
Cegedim
Media Relations
and Communications Manager
Tel.: +33 (0)1 49 09 68 81
aude.balleydier@cegedim.fr |
Damien Buffet
Cegedim
Head of Financial Communication
Tel.: +33 (0)7 64 63 55 73
damien.buffet@cegedim.com |
Céline Pardo
Becoming RP Agency
Media Relations Consultant
Tel.: +33 (0)6 52 08
13 66
cegedim@becoming-group.com |
|
---------
(1) Alternative performance indicator See
pages 112-113 of the 2023 Universal Registration Document.
(2) At constant scope and exchange rates.
Annexes
Consolidated financial statements at June
30, 2024
|
In thousands of euros |
6/30/2024 |
12/31/2023 |
|
Goodwill |
234,955 |
199,787 |
|
Development costs |
29,706 |
1,562 |
|
Other intangible fixed assets |
177,834 |
192,616 |
|
Intangible non-current assets |
207,541 |
194,178 |
|
Land |
594 |
544 |
|
Buildings |
1,556 |
1,660 |
|
Other property, plant, and equipment |
53,006 |
45,829 |
|
Advances and non-current assets in progress |
901 |
831 |
|
Rights of use |
86,092 |
89,718 |
|
Tangible fixed assets |
142,149 |
138,582 |
|
Equity investments |
0 |
0 |
|
Loans |
16,332 |
15,332 |
|
Other long-term investments |
7,120 |
5,230 |
|
Long-term investments – excluding equity shares in equity
method companies |
23,452 |
20,563 |
|
Equity shares in equity method companies |
19,086 |
22,065 |
|
Deferred tax assets |
18,209 |
19,747 |
|
Prepaid expenses: long-term portion |
0 |
0 |
|
Non-current assets |
645,390 |
594,922 |
|
Goods |
6,072 |
5,498 |
|
Advances and deposits received on orders |
1,396 |
3,703 |
|
Accounts receivables: short-term portion |
182,907 |
175,199 |
|
Other receivables: short-term portion |
59,070 |
59,563 |
|
Current tax credits |
27,262 |
16,495 |
|
Cash equivalents |
0 |
0 |
|
Cash |
35,414 |
46,606 |
|
Prepaid expenses: short-term portion |
26,138 |
22,082 |
|
Current assets |
338,260 |
329,146 |
|
Total assets |
983,651 |
924,068 |
- Liabilities et
shareholders’ equity at June 30, 2024
|
In thousands of euros |
6/30/2024 |
12/31/2023 |
|
Share capital |
13,432 |
13,337 |
|
Consolidated retained earnings |
276,449 |
282,521 |
|
Group exchange gains/losses |
-11,848 |
-12,275 |
|
Group earnings |
630 |
-7,407 |
|
Shareholders’ equity, Group share |
278,663 |
276,175 |
|
Minority interest |
17,550 |
18,381 |
|
Shareholders’ equity |
296,213 |
294,556 |
|
Non-current financial liabilities |
187,714 |
188,546 |
|
Non-current lease liabilities |
76,267 |
78,761 |
|
Deferred tax liabilities |
5,949 |
5,600 |
|
Post-employment benefit obligations |
30,632 |
31,007 |
|
Non-current provisions |
2,147 |
2,521 |
|
Non-current liabilities |
302,710 |
306,435 |
|
Current financial liabilities |
61,570 |
3,006 |
|
Current lease liabilities |
14,661 |
14,789 |
|
Trade payables and related accounts |
57,225 |
61,734 |
|
Current tax liabilities |
192 |
235 |
|
Tax and social security liabilities |
113,884 |
121,371 |
|
Non-current provisions |
1,660 |
1,730 |
|
Other current liabilities |
135,538 |
120,212 |
|
Current liabilities |
384,728 |
323,077 |
|
Total liabilities |
983,651 |
924,068 |
- Income statement
at June 30, 2024
|
In thousands of euros |
6/30/2024 |
6/30/2023 |
|
Revenues |
318,995 |
301,011 |
|
Purchases used |
-14,045 |
-14,739 |
|
External expenses |
-72,687 |
-66,371 |
|
Taxes |
-3,961 |
-4,291 |
|
Payroll costs |
-173,240 |
-163,623 |
|
Impairment of trade receivables and other receivables and on
contract assets |
-872 |
-2,041 |
|
Allowances to and reversals of provisions |
-2,440 |
-1,830 |
|
Other operating expenses |
-690 |
108 |
|
Share of profit (loss) from affiliates on the income statement |
1,146 |
603 |
|
EBITDA
(1) |
52,207 |
48,827 |
|
Depreciation expenses other than right-of-use assets |
-33,140 |
-29,030 |
|
Depreciation expenses of right-of-use assets |
-8,733 |
-9,097 |
|
Recurring operating
income(1) |
10,334 |
10,700 |
|
Non-recurring operating income and expenses |
-2,616 |
-1,385 |
|
Other non-recurring operating income and
expenses(1) |
-2,616 |
-1,385 |
|
Operating income |
7,718 |
9,315 |
|
Income from cash and cash equivalents |
326 |
180 |
|
Cost of gross financial debt |
-7,121 |
-5,633 |
|
Other financial income and expenses |
1,813 |
-136 |
|
Net financial income (expense) |
-4,983 |
-5,589 |
|
Income taxes |
-1,226 |
-1,841 |
|
Deferred income taxes |
-1,652 |
-10,588 |
|
Tax |
-2,878 |
-12,429 |
|
Share of profit (loss) from affiliates |
53 |
-515 |
|
Consolidated net profit |
-90 |
-9,219 |
|
Group share |
630 |
-8,793 |
|
Income from equity-accounted affiliates |
-721 |
-426 |
|
Average number of shares excluding treasury stock |
13,695,317 |
13,658,348 |
|
Recurring earnings per share (in euros) |
0.0 |
-0.6 |
|
Earnings per share (in euros) |
0.0 |
-0.6 |
- Cash flow
statement as of June 30, 2024
|
In thousands of euros |
6/30/2024 |
6/30/2023 |
|
Consolidated net profit |
-90 |
-9,219 |
|
Share of profit (loss) from affiliates |
-1,199 |
-88 |
|
Depreciation and amortization expenses and provisions |
40,531 |
37,972 |
|
Capital gains or losses on disposals of operating assets |
-52 |
-798 |
|
Cash flow after cost of net financial debt and
taxes |
39,190 |
27,867 |
|
Cost of net financial debt |
4,983 |
5,589 |
|
Tax expenses |
2,878 |
12,429 |
|
Cash flow from operating activities before tax and
interest |
47,051 |
45,885 |
|
Tax paid |
-11,634 |
-378 |
|
Impact of change in working capital requirements |
-13,206 |
-18,032 |
Cash flow generated from operating activities after tax
paid and change in
working capital requirements |
22,211 |
27,476 |
|
Acquisitions of intangible fixed assets |
-29,879 |
-29,550 |
|
Acquisitions of tangible fixed assets |
-15,935 |
-11,759 |
|
Acquisitions of long-term investments |
0 |
-36 |
|
Disposals of property, plant, and equipment and of intangible
assets |
553 |
2,575 |
|
Disposals of long-term investments |
934 |
805 |
|
Change in deposits received or paid |
-860 |
-156 |
|
Impact of changes in consolidation scope |
-35,454 |
-2,172 |
|
Dividends received from outside the Group |
4,073 |
30 |
|
Net cash from (used in) investing activities |
-76,568 |
-40,264 |
|
Capital increase |
985 |
- |
|
Dividends paid to minority shareholders of consolidated cos. |
0 |
- |
|
Dividends paid to shareholders of the parent company |
-1 |
- |
|
Debt issuance |
55,000 |
- |
|
Debt repayments |
-219 |
-193 |
|
Employee profit sharing |
145 |
129 |
|
Repayment of lease liabilities |
-8,152 |
-11,353 |
|
Interest paid on loans |
-972 |
-117 |
|
Other financial income received |
718 |
596 |
|
Other financial expenses paid |
-3,612 |
-3,492 |
|
Net cash flow used in financing activities |
43,892 |
-14,430 |
|
Change in net cash excluding currency impact |
-10,465 |
-27,218 |
|
Impact of changes in foreign currency exchange rates |
-728 |
-456 |
|
Change in net cash |
-11,194 |
-27,674 |
|
Opening cash |
46,606 |
55,553 |
|
Closing cash |
35,412 |
27,879 |
The Group complied with all its covenants as of
June 30, 2024.
(1) Alternative performance
indicator
- Cegedim_Earnings_1H2024_ENG
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