Adjusted EBITDA margin expected to increase to approximately 25 % in 2023 and to approximately 27 % in 2025
Organic revenue growth year-on-year of 5 % and more per year expected for the years 2021 through 2025
Annual guidance for 2021 confirmed
Digitization in the healthcare sector accelerates growth
CompuGroup Medical SE & Co. KGaA, one of the leading e-health providers in the world, announces medium-term targets for the development of the adjusted EBITDA-margin for the first time. The medium-term growth target of increasing group revenues year-on-year organically by 5 % and more per year from 2021 through 2025 had been published previously. In addition, the Managing Directors have now also adopted targets for the medium-term increase in adjusted EBITDA margin for the first time. Accordingly, CompuGroup Medical aims to increase the adjusted EBITDA margin to approximately 25 % in 2023 and to approximately 27 % in 2025. Further information on medium-term targets will be presented at the virtual Capital Markets Day tomorrow.
In light of the ongoing investment program announced in December 2020 to accelerate growth, the Managing Directors confirm the full year 2021 guidance. CompuGroup Medical expects revenues in 2021 to be in a range of EUR 1 billion and EUR 1.04 billion as well as adjusted EBITDA between EUR 210 million and EUR 230 million.
Digital transformation in healthcare accelerates growth
'Digitization is finally happening in healthcare, reinforced by the pandemic. Our customers' world is transforming rapidly. CompuGroup Medical is ideally positioned to support doctors, pharmacies, hospitals and other healthcare professionals on their path towards digitization', says CEO Dr. Dirk Wössner. 'Governments across Europe have realized the need to digitize and modernize the healthcare space, and the transformation is gaining speed. We are ready to capture this fantastic opportunity. Organic growth has already accelerated in the first half of this year, and we confirm our ambition to achieve an organic year-on-year revenue growth of 5 % and more per year from 2021 through 2025.'
CFO Michael Rauch adds: 'This year we have significantly stepped up our investments to accelerate our organic growth. At the same time, we are targeting a clear path towards increasing profitability post the investment phase we announced in December 2020. We expect to be back at former levels of profitability with an adjusted EBITDA margin of approximately 25 % in 2023 and to increase the level even further going forward with a target margin of approximately 27 % by 2025.'
Further information on the virtual Capital Markets Day 2021 will be available for download on the company website www.cgm.com/ir.
This release contains 'forward-looking statements'. Forward-looking statements may differ significantly from future results and often in fact differ. All forward-looking statements reflect CompuGroup Medical SE & Co. KGaA's (CompuGroup Medical) current view on future events and are subject to risks relating to future events and other risks, uncertainties and assumptions regarding CompuGroup Medical's business, financial position, results of operations, liquidity, prospects, growth or strategy. Forward-looking statements should always be considered from the perspective of the date on which they are made. CompuGroup Medical as well as their affiliated companies expressly disclaim any obligation to update, review or adjust any forward-looking statements contained in this release as a result of new information, future developments or other reasons. Any responsibility for the future accuracy of the opinions expressed in this release or the actual occurrence of the forecast developments is expressly excluded.