PRESS RELEASE |
First-half financial information at
IFRS - Regulated information - Audited
- Like-for-like(1) revenue grew 6.2% in the first half
- Recurring operating income1 increased by 70.4% to €10.7 million
Boulogne-Billancourt,
First-half 2021 performances were boosted by an undemanding comparison with the second quarter of 2020, which was hit particularly hard by the pandemic, especially the pharmacy media business and project-related activities in the health insurance sector.
“The year got off to a particularly robust start, with large contract wins in project-related activities, notably in health insurance. The Group’s investments in innovation are paying off. We also launched
Conditions are still volatile and uncertain, and we are still feeling the impacts of the pandemic, but revenues rose more than 6% like for like in the first half of 2021 compared with 2020, and recurring operating income is nearly at H1 2019 levels. This reflects our unique positioning within the healthcare space, offering data management, digital technologies, software, flow management, and related services.
Lastly, the acquisition of two best-in-class companies, Medimust and Kobus Tech has, among other things, made
Consolidated income statement
| H1 2021 | H1 2020 | Change | H1 2019 |
(in €m) | (in €m) | (in %) | (in €m) | |
Revenue | 251.2 | 236.2 | +6.3% | 245.8 |
EBITDA(1) | 42.6 | 38.2 | +11.3% | 45.5 |
EBITDA margin(1) | 16.9% | 16.2% | +75 bp | 18.5% |
Depreciation & amortization | (31.8) | (31.9) | (0.4)% | (32.8) |
Recurring operating income(1) | 10.7 | 6.3 | +70.4% | 12.6 |
ROI(1) margin | 4.3% | 2.7% | +161 bp | 5.1% |
Other non-recurring operating income and expenses(1) | 4.1 | (6.2) | n.m. | (16.3) |
Operating income | 14.8 | 0.1 | n.m. | (3.6) |
Operating margin | 5.9% | 0.1% | +585 bp | (1.5)% |
Cost of net financial debt | (5.5) | (4.6) | +20.6% | (4.5) |
Tax | (2.8) | (0.2) | n.m. | (2.1) |
Net profit attributable to owners of the parent | 6.5 | (4.7) | n.m. | (10.2) |
Recurring earnings per share(1) (in euros) | 0.4 | (0.2) | n.m. | (0.4) |
Earnings per share(1) (in euros) | 0.5 | (0.3) | n.m. | (0.7) |
Consolidated revenues rose by €15.0 million, or 6.3%, to €251.2 million in the first half of 2021 compared with €236.2 million in the first half of 2020. Acquisitions and divestments had virtually no impact. Like-for-like(1) revenue increased 6.2% over the period.
Recurring operating income(1) rose by €4.4 million, or 70.4%, to €10.7 million in the first half of 2021 compared with €6.3 million in H1 2020. That figure represents 4.3% of revenue at
Other non-recurring operating income and expenses(1) amounted to €4.1 million of income in the first half of 2021 compared with a €6.2 million expense in the first half of 2020. The H1 2021 performance is partly the result of a €4.7 million payment made by a client as part of the early termination of a services contract that was originally supposed to run through 2027. The H1 2020 level was largely attributable to €4.3 million of impairment for certain intangible assets of the
Depreciation and amortization expenses were virtually flat at €31.8 million in the first half of 2021 vs. €31.9 million a year earlier.
Cost of net financial debt grew by €0.9 million, or 20.6%, to €5.5 million in the first half of 2021, compared with €4.6 million in H1 2020. The main reason for the increase was exchange rate impacts related to the pound sterling. We note that the cost of gross financial debt is stable year on year because the vast majority of debt is at fixed interest rates.
Tax expenses increased by €2.6 million to €2.8 million in the first half of 2021 compared with €0.2 million expenses in the first half of 2020. This increase is due to higher taxes owed on French company profits.
Consolidated net profit attributable to the owners of the parent came to €6.5 million compared with a loss of €4.7 million in the first half of 2020. Earnings per share were a profit of €0.5 in H1 2021 compared with a loss of €0.3 in H1 2020. Recurring EPS (1) was a profit of €0.4 in H1 2021 compared with a €0.2 loss in H1 2020.
Analysis of business trends by division
- Software & Services
In millions of euros | First half | Change | ||
2021 | 2020 | Reported | Like for like(2) | |
Revenue | 140.2 | 133.7 | +4.9% | +4.6% |
Recurring operating income(1) | 2.1 | 4.4 | (52.0)% | - |
Margin | 1.5% | 3.3 | (178) bp | - |
Revenues were boosted by the recovery of project-related activities, chiefly in health insurance and HR, which had been postponed for several months amid the various lockdowns. These projects are resuming, but are having to take into consideration clients’ work-from-home arrangements, which are less conducive to change management. The Group’s allied health professional computerization business in
Recurring operating income(1) was hurt by increased hiring for sales teams assigned to Cegedim Santé’s latest offerings and for innovation-focused development teams that do not meet the criteria for capitalized costs. However, businesses catering to health insurance, HR management, and pharmacy computerization in
- Flow
In millions of euros | First half | First half | ||
2021 | 2020 | Reported | Like for like(2) | |
Revenue | 41.7 | 38.4 | +8.7% | +8.7% |
Recurring operating income(1) | 3.8 | 3.7 | +4.0% | - |
Margin | 9.2% | 9.6% | (42) bp | - |
Process digitalization for data exchange for all sectors had a strong recovery, delivering several projects initiated in the first half of 2021 with the help of new hires. After people in
(1)Alternative performance indicator See pages 137-139 of the 2020 Universal Registration Document.
(2) Source: GIE SESAM-Vitale.
As a result, the Group has made a strong start to restoring its recurring operating income. The full impact will be felt as healthcare flows return and we start seeing recurring flows related to new projects in the second half.
- Data & Marketing
In millions of euros | First half | Change | ||
2021 | 2020 | Reported | Like for like(2) | |
Revenue | 44.8 | 38.4 | 16.4% | 16.5% |
Recurring operating income(1) | 5.3 | 0.6 | n.m. | - |
Margin | 11.8% | 1.6% | +1,018bp | - |
Data activities experienced strong growth against the backdrop of the pandemic. Digital advertising in French pharmacies was back close to its pre-pandemic level, which was very positive for recurring operating income(1).
- BPO
In millions of euros | First half | Change | ||
2021 | 2020 | Reported | Like for like(2) | |
Revenue | 22.9 | 23.9 | (4.3)% | (4.3)% |
Recurring operating income(1) | (1.6) | (2.0) | (15.8)% | - |
Margin | (7.2)% | (8.2)% | +98bp | - |
A significant portion of this division’s business is providing services for insurance companies and mutual insurance providers, so it took a hit from public health restrictions that caused people in
- Corporate and others
Revenues fell 12.6% to €1.5 million, and recurring operating income(1) was a profit of €1.2 million compared with a €0.4 million loss a year earlier.
Highlights
Apart from events related to the Covid-19 pandemic and those cited above, to the best of the company’s knowledge, there were no post-closing events or changes during the first half of 2021 that would materially alter the Group’s financial situation.
- Acquisition of Kobus in
France
On
- Acquisition of Médimust in
France
On
Médimust generated revenues of €1.3 million in 2020 and earned a profit. It began contributing to the Group’s consolidation scope in
Significant transactions and events post
No significant events occurred between
(1) Alternative performance indicator See pages 137-139 of the 2020 Universal Registration Document.
(2) At constant scope and exchange rates.
Outlook
As noted on
These targets may need to be revised if the Covid-19 crisis causes a severe tightening of public health restrictions in
The Group does not expect to make any significant acquisitions in 2021. And lastly, the Group does not provide earnings estimates or forecasts.
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The Audit Committee met on
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2021 financial calendar
WEBCAST ON |
The webcast is available at: www.cegedim.fr/webcast |
The first-half 2021 results presentation is available:
|
2021 | Q3 2021 revenues |
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 The figures cited in this press release include guidance on | |||
About Founded in 1969, To learn more, please visit: www.cegedim.fr And follow | |||
Aude BALLEYDIER Media Relations and Communications Manager Tel.: +33 (0)1 49 09 68 81 aude.balleydier@cegedim.fr | Jan Eryk UMIASTOWSKI Chief Investment and Investor Relations Officer Tel.: +33 (0)1 49 09 33 36 janeryk.umiastowski@cegedim.com | Céline PARDO suPR Media Relations Tel.: +33 (0)6 52 08 13 66 cegedim@becoming-group.com | |
(1)Alternative performance indicator See pages 137-139 of the 2020 Universal Registration Document.
(2) At constant scope and exchange rates.
(3) Source: GIE SESAM-Vitale.
Annexes
Revenue comparison, sector vs. division
H1 2021 | |||||
in millions of euros | Health insurance, HR and e-services | Healthcare professionals | Corporate and others | Total | |
Software & services | 67.2 | 73.0 | - | 140.2 | |
Flow | 41.7 | - | - | 41.7 | |
Data & Marketing | 44.8 | - | - | 44.8 | |
BPO | 22.9 | - | - | 22.9 | |
Corporate & others | - | - | 1.5 | 1.5 | |
Total | 176.6 | 73.0 | 1.5 | 251.2 |
Recurring operating income(1) comparison, sector vs. division
H1 2021 | |||||
in millions of euros | Health insurance, HR and e-services | Healthcare professionals | Corporate and others | Total | |
Software & services | 8.6 | (6.5) | - | 2.1 | |
Flow | 3.8 | - | - | 3.8 | |
Data & Marketing | 5.3 | - | - | 5.3 | |
BPO | (1.6) | - | - | 1.6 | |
Corporate & others | - | - | 1.2 | 1.2 | |
Total | 16.1 | (6.5) | 1.2 | 10.7 |
(1)Alternative performance indicator See pages 137-139 of the 2020 Universal Registration Document.
Consolidated financial statements at
- Assets at
June 30, 2021
In thousands of euros | ||
193.3 | 186.0 | |
Development costs | 27.5 | 3.9 |
Other intangible fixed assets | 144.2 | 159.1 |
Intangible assets | 171.7 | 163.0 |
Property | 0.5 | 0.5 |
Buildings | 2.2 | 2.3 |
Other property, plant, and equipment | 34.8 | 31.8 |
Rights of use | 71.8 | 75.6 |
Non-current assets in progress | 0.0 | 0.0 |
Tangible fixed assets | 109.3 | 110.3 |
Equity investments | 1.2 | 1.2 |
Loans | 14.6 | 14.6 |
Other long-term investments | 5.7 | 4.7 |
Long-term investments – excluding equity shares in equity method companies | 21.5 | 20.5 |
Equity shares in equity method companies | 20.5 | 21.5 |
Deferred tax assets | 33.2 | 33.2 |
Accounts receivable: long-term portion | 0.0 | 0.0 |
Other receivables: long-term portion | 0 | 0 |
Long-term financial instruments | 0.0 | 0.0 |
Pre-paid expenses, long-term portion | 0.2 | 0.2 |
Non-current assets | 549.7 | 534.9 |
Goods | 5.2 | 3.8 |
Advances and deposits received on orders | 0.0 | 0.5 |
Accounts receivables: short-term portion | 136.7 | 134.7 |
Other receivables: short-term portion | 54.1 | 193.7 |
Short-term financial instruments | 0.0 | 0.0 |
Cash equivalents | 0.0 | 0.0 |
Cash | 32.9 | 24.7 |
Prepaid expenses: short-term portion | 18.8 | 13.1 |
Current assets | 247.7 | 370.5 |
TOTAL Assets | 797.4 | 905.4 |
Liabilities and equity atJune 30, 2021
In thousands of euros | ||
Share capital | 13.3 | 13.3 |
Consolidated retained earnings | 199.3 | 188.5 |
Foreign currency translation reserves | (2.5) | (5.0) |
Group earnings | 6.5 | 10.8 |
Shareholders’ equity, Group share | 216.6 | 207.7 |
Minority interest | 0.3 | 0.2 |
Shareholders’ equity | 216.9 | 207.9 |
Long-term financial liabilities | 186.5 | 186.3 |
Non-current lease liabilities | 58.6 | 62.3 |
Long-term financial instruments | 0.0 | 0.1 |
Deferred tax liabilities | 7.8 | 7.6 |
Retirement benefit commitments | 36.9 | 35.3 |
Non-current provisions | 2.3 | 2.6 |
Other non-current liabilities | 0.0 | 0.0 |
Non-current liabilities | 292.1 | 294.1 |
Short-term financial liabilities | 6.0 | 2.6 |
Current lease liabilities | 15.0 | 15.2 |
Short-term financial instruments | 0.0 | 0.0 |
Accounts payable, current | 48.0 | 43.2 |
Tax and social security liabilities | 115.9 | 108.7 |
Current provisions | 2.0 | 3.0 |
Other current liabilities | 101.6 | 230.5 |
Current liabilities | 288.5 | 403.3 |
TOTAL Liabilities | 797.4 | 905.4 |
- Income statement at
June 30, 2021
In millions of euros | ||
Revenue | 251.2 | 236.2 |
Purchases used | (13.0) | (12.0) |
External expenses | (49.8) | (51.9) |
Taxes | (4.3) | (5.1) |
Employee costs | (139.4) | (127.9) |
Impairment on accounts receivable and other receivables and on contract assets | (0.3) | (2.1) |
Allowances to and reversals of provisions | (2.0) | (0.7) |
Change in inventories of products in progress and finished products | 0.0 | 0.0 |
Other operating income and expenses | 0.1 | 0.1 |
Share of profit (loss) for the period of income from equity-accounted affiliates | 0.1 | 1.7 |
EBITDA(1) | 42.6 | 38.2 |
Depreciation expenses other than right-of-use assets | (23.7) | (24.3) |
Depreciation expenses of right-of-use assets | (8.1) | (7.7) |
Recurring operating income(1) | 10.7 | 6.3 |
Impairment of acquisition goodwill | 0.0 | 0.0 |
Non-recurring operating income and expenses(1) | 4.1 | (6.2) |
Other non-recurring operating income and expenses(1) | 4.1 | (6.2) |
Operating income | 14.8 | 0.1 |
Income from cash and cash equivalents | 0.1 | 0.0 |
Cost of gross financial debt | (4.2) | (4.3) |
Other financial income and expenses | (1.4) | (0.3) |
Cost of net financial debt | (5.5) | (4.6) |
Income taxes | (3.1) | (0.5) |
Deferred income taxes | 0.2 | 0.3 |
Tax | (2.8) | (0.2) |
Share of net profit (loss) of equity method companies | 0.0 | 0.0 |
Consolidated net profit | 6.5 | (4.6) |
Group share | 6.5 | (4.7) |
Income from equity-accounted affiliates | 0.0 | 0.0 |
Average number of shares excluding treasury stock | 13 824 493 | 13 826 606 |
Recurring earnings per share(1) (in euros) | 0.4 | (0.2) |
Earnings per share (in euros) | 0.5 | (0.3) |
(1)Alternative performance indicator See pages 137-139 of the 2020 Universal Registration Document.
- Cash flow statement as of
June 30, 2021
In thousands of euros | ||
Consolidated profit (loss) for the period | 6.5 | (4.6) |
Share of earnings from equity method companies | (0.1) | (1.7) |
Depreciation and amortization expenses and provisions | 32.2 | 36.4 |
Elimination of revaluation profits / losses (fair value) | 0.0 | 0.0 |
Capital gains or losses on disposals | 0.0 | (0.3) |
Elimination of dividend income | 0.0 | 0.0 |
Cash flow after cost of net financial debt and taxes | 38.6 | 29.9 |
Cost of net financial debt | 5.5 | 4.6 |
Tax expenses | 2.8 | 0.2 |
Operating cash flow before cost of net financial debt and taxes | 47.0 | 34.7 |
Tax paid | 0.6 | (2.1) |
Impact of change in working capital requirements | 9.0 | 18.1 |
Cash flow generated from operating activities after tax paid and change in working capital requirements | 56.6 | 50.7 |
Acquisitions of intangible assets | (25.3) | (27.8) |
Acquisitions of tangible assets | (7.9) | (5.0) |
Acquisitions of long-term investments | (1.1) | (1.0) |
Disposals of tangible and intangible assets | 0.0 | 0.3 |
Disposals of long-term investments | 0.8 | 0.0 |
Change in deposits received or paid | 0,1 | (1.3) |
Impact of changes in consolidation scope | (5.1) | 0.0 |
Dividends received | 0.1 | 0.1 |
Other cash flows from investment activities | 0.0 | 0.0 |
Net cash flow used in investing activities | (38.4) | (34.7) |
Dividends paid to shareholders of the parent company | 0.0 | 0.0 |
Dividends paid to minority shareholders of consolidated cos. | 0.0 | 0.0 |
Capital increase | 0.0 | 0.0 |
Debt issuance | 0.0 | 0.0 |
Debt repayments | (0.1) | (10.2) |
Employee profit sharing | 0.6 | 0.3 |
Repayment of lease liabilities | (8.7) | (7.5) |
Interest paid on loans | (0.1) | (0.3) |
Other income | 0.4 | 0.1 |
Other financial expenses paid | (2.1) | (1.2) |
Net cash flow used in financing activities | (10.2) | (18.7) |
Change in net cash excluding currency impact | 8.1 | (2.8) |
Impact of changes in foreign currency exchange rates | 0.2 | (0.2) |
Change in net cash | 8.2 | (2.9) |
Opening cash | 24.7 | 29.1 |
Closing cash | 32.9 | 26.1 |
(1)Alternative performance indicator See pages 137-139 of the 2020 Universal Registration Document.
(2) Source: GIE SESAM-Vitale.
Attachment
- Cegedim_Earnings_H12021_ENG
Source:
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