First-half financial information at June 30, 2021IFRS -
Regulated information - Audited
Cegedim: Business rebounded strongly in the first half
of 2021
- 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, France, September 16, 2021, after
the market close
Cegedim generated
consolidated H1 revenues of €251.2 million in 2021, an increase of
6.3% as reported and 6.2% like for like compared with the same
period a year ago, and recurring operating
income(1)
rose 70.4% as reported to €10.7 million.
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. Laurent Labrune, Deputy Managing Director of
Cegedim, said:
“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 Cegedim Santé in France, a new
unit with its own brand aimed at making us more competitive by
bundling products and services for the healthcare professional
market while also responding to new public health challenges.
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
Cegedim the top medical software publisher in France(2) and will
allow it to meet the needs of more than 100,000 French healthcare
professionals.”
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 June 30, 2021, compared with 2.7% at
June 30, 2020. The improvement stems from reduced spending on
business travel, receptions, and marketing, less use of external
service providers, and an improved performance from the Data &
marketing division owing to a strong recovery by digital
advertising in French pharmacies, a business that had been halted
for around a month last year.
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 UK doctor software business stemming from
previous acquisitions.
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
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 France and its appointment
scheduling, remote health, and HR management solutions are also
trending favorably.
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 France made positive contributions to recurring
operating income(1).
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 France reduced their use of the healthcare system
early in the year because of public health restrictions, healthcare
flow business related to reimbursements increased in the second
quarter.
(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.
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).
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 France reduce their use of the
healthcare system. However, it was able to make process
improvements that reduced the impact on recurring operating
income(1).
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 April 30, 2021, Cegedim acquired French
start-up Kobus Tech, which specializes in patient management for
physical therapists (patient care summaries, exercise prescription,
mail generation, etc.). Its solution has more than 4,000 users. It
is perfectly compatible with Cegedim Santé’s solutions and their
combined offering is one of the market’s most comprehensive. Kobus
was initially consolidated on June 30, 2021.
-
Acquisition of Médimust
in France
On May 4, 2021, Cegedim acquired Médimust, a
software publisher serving healthcare professions for 25 years that
currently supplies 2,000 independent physicians. The acquisition
cements Cegedim Santé’s place as France’s number 1 medical software
company(3). Pooling the companies’ know-how and expertise is
strengthening Cegedim Santé’s range of solutions and improving its
ability to adapt to market developments and healthcare
professionals’ changing needs.
Médimust generated revenues of €1.3 million in
2020 and earned a profit. It began contributing to the Group’s
consolidation scope in May 2021.
Significant transactions and events post June 30,
2021
No significant events occurred between June 30, 2021, and
September 16, 2021, when the Board of Directors approved the
financial statements.(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 July 27, Cegedim expects
like-for-like(1) revenue growth of 3% to 5%. Out of caution,
considering the comparison basis with the second half of 2020, the
Group reiterates its target for recurring operating income(1) of
around 4%.
These targets may need to be revised if the
Covid-19 crisis causes a severe tightening of public health
restrictions in Europe after this press release is issued.
The Group does not expect to make any
significant acquisitions in 2021. And lastly, the Group does not
provide earnings estimates or forecasts.
---------------
The Audit Committee met on September 15, 2021.
The Board of Directors, chaired by Jean-Claude Labrune, met on
September 16, 2021, and approved the consolidated financial
statements at June 30, 2021, of which the statutory auditors have
conducted a limited review. The Interim Financial Report will be
available in a few days’ time, in French and in English, on our
website and the Cegedim IR app.
---------------2021 financial
calendar
WEBCAST ON SEPTEMBER 16, 2021, AT 6:15 PM (PARIS
TIME) |
The webcast is available at:
www.cegedim.fr/webcast |
The first-half 2021 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
|
2021 |
October 28 after the close |
Q3 2021 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 16, 2021, 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 2020 Universal Registration
Document filled with the AMF on April 16, 2021, under number
D.21-0320. |
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 5,300 people in more than 10 countries and
generated revenue of €500 million in 2020. Cegedim SA is listed in
Paris (EURONEXT: CGM).To learn more, please visit:
www.cegedim.frAnd 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 suPRMedia
Relations Tel.: +33
(0)6 52 08 13 66cegedim@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 |
Healthcareprofessionals |
Corporateand 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 |
Healthcareprofessionals |
Corporateand 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 June 30,
2021
In thousands of euros |
June 30, 2021 |
December 31, 2020 |
Goodwill |
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 at June 30, 2021
In thousands of euros |
June 30, 2021 |
December 31, 2020 |
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 |
June 30, 2021 |
June 30, 2020 |
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 |
June 30, 2021 |
June 30, 2020 |
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.
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