First-half financial information at June 30, 2022IFRS -
Regulated information - Audited
Cegedim: Strong commercial momentum and accelerated
investments in the first half of 2022
- Revenue of €267.6
million and like-for-like growth of 6.1%
- Recurring operating
income(1) down 39.7% to €6.8 million
- 2022 revenue outlook
confirmed, recurring operating income outlook adjusted
Boulogne-Billancourt, France, September 20, 2022, after
the market close
Cegedim generated
consolidated H1 revenues of €267.6 million in 2022, an increase of
6.5% as reported and 6.1% like for
like(1)
compared with the same period a year ago, and recurring
operating income(1) fell 39.7% to
€6.8 million. Recurring operating margin came to 2.5% in H1 2022,
compared with 4.5% a year earlier. As a result, the consolidated
net profit attributable to the owners of the parent came to a €4.9
million loss compared with a profit of €6.5 million in June
2021.
Laurent Labrune, Deputy Managing Director of
Cegedim , said: “Sales rose strongly in the first half of 2022,
building on last year’s momentum. All of our operating divisions
contributed to the growth, with some posting growth in the double
digits.
To accelerate its ongoing project development,
the Group has added R&D and sales staff. Furthermore, it will
be a year before wage increases are passed on to clients, as the
vast majority of Group contracts stipulate annual price indexing.
The lag time will hamper margins in 2022, most notably at the
Software & Services division. Despite the temporary disruption,
the Flow, Data & marketing and BPO divisions all posted
recurring operating income growth and improved their margins.
Cegedim is in a great position to seize
opportunities in its markets and is confident in its outlook for
the second half of the year.”
Key figures
|
In millions of euros |
H1 2022 |
H1 2021 |
% chg. |
|
Revenue |
267.6 |
251.2 |
+6.5% |
|
Recurring operating income(1) |
6.8 |
11.3 |
(39.7)% |
|
Consolidated net profit |
(6.1) |
6.5 |
n.m. |
|
Net profit attributable to owners of the parent |
(4.9) |
6.5 |
n.m. |
|
Free cash flow from operations(1) |
(33.0) |
+23.4 |
n.m. |
|
Net financial debt excluding IFRS 16 debt |
155.0 |
165.0 |
(6.1)% |
|
Shareholders’ equity |
288.5 |
232.4 |
+24.1% |
--------------------(1) Alternative performance
indicator, for a definition and reconciliation of these figures,
see point 3.6, note 2 of the 2022 Interim Financial Report.
Revenue trends by division
|
In millions of euros |
H1 2022 |
H1 2021 |
% chg. |
|
|
Like for like(2) |
Reported |
|
|
Software & services |
145.6 |
140.2 |
+3.0% |
+3.8% |
|
Flow |
45.2 |
41.7 |
+8.2% |
+8.3% |
|
Data & marketing |
50.0 |
44.8 |
+11.8% |
+11.8% |
|
BPO |
25.4 |
22.9 |
+10.8% |
+10.8% |
|
Corporate and others |
1.3 |
1.5 |
(11.2)% |
(11.2)% |
|
Cegedim |
267.6 |
251.2 |
+6.1% |
+6.5% |
(2) The positive currency
impact of 0.2% was mainly due to the pound sterling. The positive
scope effect of 0.2% was attributable to the first-time
consolidation at June 30, 2021, of Kobus Tech and at June 30, 2022,
of Mesdocteurs.
Recurring operating income(1)
by division
|
In millions of euros |
H1 2022 |
H1 2021 |
% chg. |
|
Software & services |
(7.6) |
2.0 |
n.m. |
|
Flow |
6.3 |
4.4 |
+43.8% |
|
Data & marketing |
6.1 |
5.3 |
+14.9% |
|
BPO |
1.0 |
(1.6) |
n.m. |
|
Corporate and others |
1.0 |
1.2 |
(19.9)% |
|
Cegedim |
6.8 |
11.3 |
(39.7)% |
Analysis of business trends by division
The Software & Services
division posted like-for-like revenue growth of 3.0% in the first
half of 2022. Recurring operating income fell by €9.6 million.
Revenue: All of the division’s
activities turned in solid performances with the exception of the
healthcare professional computerization business in the UK, where
revenue declined, as expected.
Recurring operating
income(1) was hurt by increased
hiring for sales teams assigned to Cegedim Santé’s latest offerings
and for development teams working on innovations and who do not
meet the criteria for capitalized costs.
The Flux division posted
like-for-like revenue growth of 8.2% in the first half of 2022.
Recurring operating income increased by 43.8%.
Revenue: The process
digitalization and digital data flow business experienced strong
growth in France. The clear recovery seen in Germany and the UK in
the first quarter continued in the second. The healthcare flow
business related to healthcare reimbursements in France also grew
over the first half.
Recurring operating
income(1):
Healthcare flow and Cegedim e-business’ international activities
made the biggest contributions to this growth.
The Data & marketing
division posted like-for-like revenue growth of 11.8% in the first
half of 2022. Recurring operating income increased by
14.9%.
Revenue: Data and digital
communication solutions for French pharmacies still have good
momentum.
Recurring operating
income(1): Digital advertising in French
pharmacies had a very positive impact on recurring operating
income(1).
--------------------(1) Alternative performance
indicator, for a definition and reconciliation of these figures,
see point 3.6, note 2 of the 2022 Interim Financial Report.
The BPO division posted
like-for-like revenue growth of 10.8% in the first half of 2022.
Recurring operating income(1) rose €2.7 million to a profit of €1.0
million.
Revenue: The business of
providing services for insurance companies and mutual insurance
providers was stable in the first quarter and posted double-digit
growth in the second quarter. Growth in BPO services for HR
departments –already in double digits in Q1—ramped up in the second
quarter.
Recurring operating
income(1): Growing revenues and improving
processes helped significantly boost recurring operating income(1),
and the division posted a profit, compared with a loss a year ago.
The business of managing services for insurance companies and
mutual insurance providers, and the business of providing BPO
services to HR departments both contributed to the improvement.
Revenues fell 11.2% to €1.3 million, and
recurring operating income(1) was a profit of €1.0 million, down
19.9% compared with a year earlier.
Highlights
Apart from the items cited below, to the best of
the company’s knowledge. there were no events or changes during H1
2022 that would materially alter the Group’s financial
situation.
The Group does not do business in Russia or
Ukraine and has no assets exposed to those countries.
-
Investment and strategic partnership between Cegedim and 3
social protection companies
On May 16, 2022, Cegedim Group and social
protection companies Malakoff Humanis, Groupe VYV, and PRO BTP
Groupe announced that they had finalized the strategic partnership
they began negotiating on March 1, 2022.
This strategic partnership will advance the
goals laid out by the French government in its Ma Santé 2022 plan.
The partnership will draw on the recognized expertise of Cegedim,
Malakoff Humanis, Groupe VYV, and PRO BTP, who all share the goal
of improving patients’ access to care and making the course of care
as smooth as possible.
To this end, Malakoff Humanis, Groupe VYV, and
PRO BTP Groupe—who together represent 25 million beneficiaries in
France—subscribed a reserved capital increase of €65 million on May
24, 2022, and now own 18% of the shares of Cegedim Santé. The deal
values Cegedim Santé at €360.9 million. As part of the deal,
Cegedim Santé acquired Groupe VYV subsidiary MesDocteurs, a
telehealth solution pioneer and one of the originators of 24/7
telemedicine.
On June 21, 2022, Cegedim SRH acquired Laponi,
an innovative solution for managing absenteeism in real time.
Laponi, a French startup founded in 2016, has successfully
developed a digital SaaS platform that lets companies ask internal
and external employees to cover shifts when someone is absent. The
Laponi solution is easy to use and alerts employees in real time
about available assignments. Employees are then free to choose
assignments while boosting their income. The acquisition enhances
Cegedim SRH’s TeamsRH HRIS platform.
An integral part of Cegedim SRH’s portfolio,
Laponi will be able to help solve absenteeism issues at the
company’s 400 clients, and its solution will benefit from Cegedim
SRH’s technical and financial resources as well as its sales
force.
Laponi is profitable.
On February 21, 2018, Cegedim S.A. received
official notice that the French tax authorities planned to perform
an audit of its financial statements for the period from January 1,
2015, to December 31, 2016. After consultation with its lawyers and
based on ample precedent. the Group believes that the adjustment is
unwarranted and continues to explore its options to appeal the
decision.
--------------------(1) Alternative performance
indicator, for a definition and reconciliation of these figures,
see point 3.6, note 2 of the 2022 Interim Financial Report.
As part of this process, in the first half of
2022 Cegedim S.A. received a notice of collection and paid a total
of €12.1 million in respect of tax losses used through 2020 and a
€0.3 million late payment penalty. The corresponding entry for
these payments is not the taxes line of the income statement, but
rather the deferred tax assets line of the balance sheet, as we
expect these sums to be repaid once the dispute has been resolved.
Furthermore, the Group continues to record the disputed tax losses
as an asset equal to €20 million in deferred tax assets on the
balance sheet.
Cegedim faces a maximum risk of €20.5 million at
June 30, 2022, as a result of the dispute, of which €12.1 million
has already been paid. Cegedim believes that there is little risk
with respect to this amount or to the €20 million of deferred tax
assets and sees no reason to call their valuation into
question.
On October 21, 2021, Cegedim S.A. received
official notice that the French tax authorities planned to perform
an audit of its financial statements for the period from January 1,
2019, to December 31, 2020. The audit is currently underway.
Significant transactions and events post June 30,
2022
Apart from the items cited below. to the best of
the company’s knowledge. there were no events or changes after June
30, 2022, that would materially alter the Group’s financial
situation.
A dividend of c.€6,830,000 (i.e. €0.5 per share)
in respect of fiscal year 2021 was approved at the General
Shareholders’ Meeting on June 17, 2022, and paid in July 2022.
On July 19, 2022, Cegedim e-business rounded out
its Hospitalis offering by acquiring Sedia, which has specialized
in software that tracks medical instrumentation usage since 1985.
Thanks to this acquisition, Hospitalis now offers a medical device
and implantable medical device (MD/IMD) tracking service. The
service is responsible for 900,000 scans annually and has tracked
more than 8 million IMDs. The newest component in the Hospitalis
range, Sedia offers health, financial, and logistical tracking of
MD/IMDs that are on consignment or have been lent or purchased
outright.
Sedia is profitable and will begin contributing
to the Group’s consolidation scope on August 1, 2022.
In July 2022, Cegedim acquired a 70% majority
stake in Clinigrid, which owns 100% of Cinityx. Clinigrid
specializes in innovative data valorization models, and Clinityx
has unique expertise in real world data and matching them to the
SNDS (the French administrative healthcare database).
Outlook
Cegedim still expects like-for-like revenue
growth(1) of c.5% in 2022. Considering current economic conditions
and the lag between the increase in prices and in wages on the one
hand, and R&D investments and sales force recruitment on the
other, the percentage decline in 2022 recurring operating income(1)
is not expected to exceed the decline in the first half.
The Group does not expect to make any
significant acquisitions in 2022. And lastly, the Group does not
provide earnings estimates or forecasts.
---------------
The Audit Committee met on September 19, 2022.
The Board of Directors, chaired by Jean-Claude Labrune, met on
September 20, 2022, and approved the consolidated financial
statements at June 30, 2022, of which the statutory auditors have
conducted a limited review. The Interim Financial Report is
available in French and—in a few days’ time—in English, on our
website and the Cegedim IR app.
---------------
--------------------(1) Alternative performance
indicator, for a definition and reconciliation of these figures,
see point 3.6, note 2 of the 2022 Interim Financial Report.
2022 financial calendar
|
WEBCAST ON SEPTEMBER 20, 2022, AT 6:15 PM (PARIS
TIME) |
|
The webcast is available at:
www.cegedim.fr/webcast |
The first-half 2022 results presentation is available:
- On the website:
https://www.cegedim.fr/finance/documentation/Pages/presentations.aspx
- And on the Cegedim
IR smartphone app, available at
https://www.cegedim.fr/finance/profil/Pages/CegedimIR.aspx
|
|
2022 |
October 27 after the close |
Q3 2022 revenues |
|
DisclaimerThis 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 20, 2022, 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 2021 Universal Registration
Document filled with the AMF on April
1st, 2022, under number
D.22-0232. |
|
About Cegedim:Founded in 1969, Cegedim is an innovative technology
and services company 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 5,600 people in more than 10 countries and
generated revenue of €525 million in 2021. Cegedim S.A. is listed
in Paris (EURONEXT: CGM).To learn more, please visit:
www.cegedim.comAnd follow Cegedim on Twitter@CegedimGroup, LinkedIn
and Facebook. |
| Aude
BalleydierCegedimMedia Relations and
Communications ManagerTel.: +33 (0)1 49 09 68
81aude.balleydier@cegedim.fr |
Jan
Eryk
UmiastowskiCegedimChief
Investment and Investor Relations OfficerTel.: +33 (0)1 49 09 33
36janeryk.umiastowski@cegedim.com |
Céline
Pardo .BecomingMedia
Relations Tel.: +33
(0)6 52 08 13 66cegedim@becoming-group.com |
|
Annexes
Revenue
|
|
|
First half |
Change H1 2022 / 2021 |
|
in millions of euros |
|
2022 |
2021 |
Reported |
Like for like(1)(2) |
|
Software & services |
|
145.6 |
140.2 |
+3.8% |
+3.0% |
| Flow |
|
45.2 |
41.7 |
+8.3% |
+8.2% |
| Data &
Marketing |
|
50.0 |
44.8 |
+11.8% |
+11.8% |
| BPO |
|
25.4 |
22.9 |
+10.8% |
+10.8% |
| Corporate and
others |
|
1.3 |
1.5 |
(11.2)% |
(11.2)% |
|
Cegedim |
|
267.6 |
251.2 |
+6.5% |
+6.1% |
(1) At constant scope and
exchange rates. (2) The positive currency impact
of 0.2% was mainly due to the pound sterling. The positive scope
effect of 0.2% was attributable to the first-time consolidation at
June 30, 2021, of Kobus Tech and at June 30, 2022, of
Mesdocteurs.
Consolidated financial statements at June 30,
2022
|
In millions of euros |
6/30/2022 |
12/31/2021 |
|
Goodwill |
189.9 |
187.1 |
|
Development costs |
36.0 |
8.4 |
|
Other intangible fixed assets |
156.2 |
171.5 |
|
Intangible assets |
192.1 |
179.9 |
|
Property |
0.5 |
0.5 |
|
Buildings |
2.0 |
2.1 |
|
Other property, plant, and equipment |
37.1 |
35.0 |
|
Advances and non-current assets in progress |
0.0 |
- |
|
Rights of use |
77.2 |
84.0 |
|
Tangible fixed assets |
116.8 |
121.7 |
|
Equity investments |
0.3 |
0.3 |
|
Loans |
15.2 |
15.2 |
|
Other long-term investments |
6.0 |
5.8 |
|
Long-term investments – excluding equity shares in equity
method companies |
21.6 |
21.3 |
|
Equity shares in equity method companies |
20.4 |
21.3 |
|
Deferred tax assets |
29.8 |
33.5 |
|
Prepaid expenses: long-term portion |
0.0 |
0.1 |
|
Non-current assets |
570.7 |
564.9 |
|
Goods |
7.3 |
4.5 |
|
Advances and deposits received on orders |
0.3 |
0.1 |
|
Accounts receivables: short-term portion |
153.2 |
136.3 |
|
Other receivables: short-term portion |
53.8 |
48.7 |
|
Current tax credits |
15.2 |
2.1 |
|
Cash equivalents |
0.0 |
0.0 |
|
Cash |
39.0 |
24.2 |
|
Prepaid expenses: short-term portion |
20.5 |
16.7 |
|
Current assets |
289.2 |
232.7 |
|
TOTAL Assets |
859.9 |
797.6 |
-
Liabilities and equity at June 30, 2022
|
In millions of euros |
6/30/2022 |
12/31/2021 |
|
Share capital |
13.3 |
13.3 |
|
Consolidated retained earnings |
270.7 |
200.7 |
|
Group exchange gains/losses |
(9.4) |
(8.2) |
|
Group earnings |
(4.9) |
26.2 |
|
Shareholders’ equity, Group share |
269.7 |
232.1 |
|
Minority interest |
18.8 |
0.3 |
|
Shareholders’ equity |
288.5 |
232.4 |
|
Long-term financial liabilities |
188.8 |
186.6 |
|
Non-current lease liabilities |
63.5 |
70.3 |
|
Long-term financial instruments |
- |
- |
|
Deferred tax liabilities |
8.0 |
8.3 |
|
Retirement benefit commitments |
26.0 |
34.1 |
|
Provisions |
2.0 |
2.3 |
|
Other non-current liabilities |
- |
- |
|
Non-current liabilities |
288.4 |
301.5 |
|
Short-term financial liabilities |
5.2 |
2.6 |
|
Current lease liabilities |
16.1 |
16.1 |
|
Short-term financial instruments |
- |
- |
|
Trade payables and related accounts |
46.9 |
48.2 |
|
Current tax liabilities |
1.3 |
1.5 |
|
Tax and social security liabilities |
98.9 |
101.0 |
|
Provisions |
1.9 |
2.1 |
|
Other current liabilities |
112.7 |
92.3 |
|
Current liabilities |
283.0 |
263.7 |
|
TOTAL Liabilities |
859.9 |
797.6 |
- Income
statement at June 30, 2022
|
In millions of euros |
6/30/2022 |
6/30/2021 |
|
Revenue |
267.6 |
251.2 |
|
Purchases used |
(13.5) |
(13.0) |
|
External expenses |
(58.2) |
(49.8) |
|
Taxes |
(4.7) |
(4.3) |
|
Employee costs |
(149.4) |
(139.4) |
|
Impairment on accounts receivable and other receivables and on
contract assets |
(0.4) |
(0.3) |
|
Allowances to and reversals of provisions |
(1.2) |
(2.0) |
|
Other operating income and expenses |
0.3 |
0,1 |
|
Share of profit (loss) for the period of equity method
companies included in Operating Income(2) |
1.3 |
0.7 |
|
EBITDA(1) |
41,7 |
43.1 |
|
Depreciation expenses other than right-of-use assets |
(26.5) |
(23.7) |
|
Depreciation expenses of right-of-use assets |
(8.4) |
(8.1) |
|
Recurring operating
income(1) |
6.8 |
11.3 |
|
Amortization of goodwill - |
0.0 |
0.0 |
|
Non-recurring operating income and expenses(1) |
(4.4) |
4.1 |
|
Other non-recurring operating income and
expenses(1) |
(4.4) |
4.1 |
|
Operating income |
2.5 |
15.4 |
|
Income from cash and cash equivalents |
0.0 |
0,1 |
|
Cost of gross financial debt |
(4.2) |
(4.2) |
|
Other financial income and expenses |
(0.3) |
(1.4) |
|
Financial result |
(4.4) |
(5.5) |
|
Income taxes |
(2.7) |
(3.1) |
|
Deferred income taxes |
(0.8) |
0.2 |
|
Tax |
(3.5) |
(2.8) |
|
Share of net profit (loss) of equity method companies |
(0.7) |
(0.6) |
|
Consolidated net profit |
(6.1) |
6.5 |
|
Group share |
(4.9) |
6.5 |
|
Non-controlling interest |
(1.3) |
0.0 |
|
Average number of shares excluding treasury stock |
13,683,647 |
13,798,138 |
|
Recurring earnings per share(1)
(in euros) |
(0.4) |
0.4 |
|
Earnings per share (in euros) |
(0.4) |
0.5 |
(1) Alternative performance indicator, for a definition and
reconciliation of these figures, see point 3.6, note 2 of the 2022
Interim Financial Report.
| (2)
Reclassification of income from equity-accounted affiliates. |
|
In millions of euros |
6/30/2021 reported |
Reclassification of income from equity-accounted affiliates |
6/30/2021 for comparison purposes |
|
Share of profit (loss) for the period of equity method companies
included in operating income |
0.1 |
0.6 |
0.7 |
| EBITDA |
42.6 |
0.6 |
43.1 |
| Recurring operating
income |
10.7 |
0.6 |
11.3 |
| Operating
income |
14.8 |
0.6 |
15.4 |
| Share of profit
(loss) for the period of equity method companies |
(0.0) |
(0.6) |
(0.6) |
- Cash
flow statement as of June 30, 2022
|
In millions of euros |
6/30/2022 |
6/30/2021 |
|
Consolidated profit (loss) for the period |
(6.1) |
6.5 |
|
Share of earnings from equity method companies |
(0.7) |
(0.1) |
|
Depreciation and amortization expenses and provisions |
35.1 |
32.2 |
|
Capital gains or losses on disposals |
1.3 |
0.0 |
|
Cash flow after cost of net financial debt and
taxes |
29.5 |
38.6 |
|
Cost of net financial debt |
4.4 |
5.5 |
|
Tax expenses |
3.5 |
2.8 |
|
Operating cash flow before cost of net financial debt and
taxes |
37.4 |
47.0 |
|
Tax paid |
(15.9) |
0.6 |
|
Impact of change in working capital requirements |
(18.5) |
9.0 |
|
Cash flow generated from operating activities after tax
paid and change in working capital requirements |
3.0 |
56.6 |
|
Acquisitions of intangible assets |
(28.0) |
(25.3) |
|
Acquisitions of tangible assets |
(8.1) |
(7.9) |
|
Acquisitions of long-term investments |
(1.9) |
(1.1) |
|
Disposals of tangible and intangible assets |
0.0 |
0.0 |
|
Disposals of long-term investments |
0.9 |
0.8 |
|
Change in deposits received or paid |
0,1 |
0,1 |
|
Impact of changes in consolidation scope |
58.3 |
(5.1) |
|
Dividends received |
1.5 |
0,1 |
|
Net cash flow used in investing activities |
22.9 |
(38.4) |
|
Capital increase |
|
|
|
Dividends paid to shareholders of the parent company |
|
|
|
Dividends paid to minority shareholders of consolidated
companies. |
0.0 |
0.0 |
|
Debt repayments |
0.0 |
(0.1) |
|
Employee profit sharing |
0.3 |
0.6 |
|
Repayment of lease liabilities |
(9.8) |
(8.7) |
|
Interest paid on loans |
(0.1) |
(0.1) |
|
Other income |
0,1 |
0.4 |
|
Other financial expenses paid |
(1.3) |
(2.1) |
|
Net cash flow used in financing activities |
(10.9) |
(10.2) |
|
Change in net cash excluding currency impact |
15.0 |
8.1 |
|
Impact of changes in foreign currency exchange rates |
(0.1) |
0.2 |
|
Change in net cash |
14.9 |
8.2 |
|
Opening cash |
24.2 |
24.7 |
|
Closing cash |
39.0 |
32.9 |
- Cegedim_Earnings_1H2022_ENG
Cegedim (EU:CGM)
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From Jun 2024 to Jul 2024
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From Jul 2023 to Jul 2024
