Claranova : H1 2021-2022 results

H1 2021-2022 results 30 Mar 2022

Stable earnings in the period

• H1 2021-2022 revenue: €281m (+1%)
• EBITDA steady at €23m with an EBITDA margin of 8.2%
• Cash flow 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)

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 fabless, 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 SaaS 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.

Claranova 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-like).

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 debt 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 2022-2023.

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