Nedap N : Press release – Half-yearly figures 2020

Revenue first half-year 2020 remains almost equal Operating result declines with 6%

The Netherlands, Groenlo, 23 July 2020, 5:45 PM

Key points

• Revenue in the first half of 2020 was € 93.5 million, which is almost the same as in the first half of 2019 (-0.7%).
  - Recurring revenue increased by 13% and now accounts for 25.7% of the total revenue.
  - After a strong start in the first quarter with revenue growth of 9%, revenue in the second quarter shows a decrease of 9% due to the impact of COVID-19.
• The business units Healthcare and Livestock Management showed good revenue growth, in line with the first quarter of 2020. As a result of the lockdown measures in a large number of countries, the other business units showed a decrease in revenue. The impact on the Retail business unit was the largest.
• Added value improved from 62.8% to 64.9%, driven by the increased share of recurring revenue.
• Operating result decreased by 6% to € 7.7 million (H1 2019: € 8.1 million) due to the effect of investments in the organisation during 2019.
• Net result amounted to € 6.2 million in the first half of 2020, compared to € 6.7 million in the first half of 2019.
• Due to uncertainty about the duration and effects of the COVID-19 crisis on the global economy, it is not possible to make a reliable estimate of the results in the second half of 2020.

Ruben Wegman, CEO of Nedap: 'Thanks to a strong start to the year and the spread in our activities, the effects of the COVID-19 crisis on the financial results in the first half of 2020 have remained relatively limited. The revenue growth at the business units Healthcare and Livestock Management was not sufficient to compensate for the decline in revenue in the other business units. Despite the challenging conditions, new market opportunities are also emerging and the current crisis is accelerating innovation in a number of markets. For example at Retail, there is an increasing demand for our !D Cloud platform. Nedap's solid financial foundation allows us to continue to invest in these times and enables us to seize opportunities in the market. This allows us to further improve our competitive position, making us even stronger positioned as markets recover.'

Download the complete press release here: Press release - Nedap half-yearly figures 2020