Quadient S.A. - Q3 2024: accelerated growth in Digital at c.+9% and
surge in Lockers at +14%, in line with Capital Markets Day
ambitions
Q3 2024: accelerated growth in Digital at
c.+9% and surge in Lockers at +14%, in line with Capital Markets
Day ambitions
Key highlights
- 9M
2024 consolidated revenue of €797 million, up
+2.4% on a reported basis including the contribution of
the two recent acquisitions and up +0.6%
organically(1)
- 9M 2024
subscription-related revenue (72% of total revenue)
increased by +1.4% on an organic basis, with
Digital posting a 10.1% organic increase
- Q3 2024
consolidated revenue of €263 million, up 0.3%
organically(2)
- Q3 2024
subscription-related revenue up +2.6% organically,
with +12.9% in Digital and +15.7% in
Lockers. Share of subscription-related revenue up
2 points to 72% at Group level
- Continued strong
performance from North America at +3.0%
organic growth in Q3 2024, representing 58% of Group
revenue
- Q3 2024 organic
revenue growth brings Solutions performance in line with
Capital Markets Day ambitions with Digital at c.9% and Lockers
above 14%
- FY 2024
outlook confirmed
Paris, 27 November 2024
Quadient S.A. (Euronext Paris:
QDT), a global automation platform powering secure and sustainable
business connections, today announces its 2024 third quarter and
nine-month consolidated revenue (period ended
on 31 October 2024).
Geoffrey Godet, Chief Executive Officer of
Quadient S.A., stated:
“The third quarter of 2024 has been a strong
quarter for our Digital and Lockers solutions, which delivered
solid levels of organic revenue growth at c.+9% for Digital and
above +14% for Lockers. This growth acceleration is in line with
the ambitions presented during our Capital Markets Day in June and,
more importantly, this significant improvement was driven by an
even stronger acceleration of the subscription-related revenue. At
+12.9% for Digital and +15.7% for Lockers, organic growth from
subscription-related revenue shows the strength and success of our
business model.
With the fast roll-out of our open networks
of Lockers in the UK and in France, volumes have now picked up as
usage increases with the density of the networks. We expect this
virtuous circle to continue to accelerate as we are heading into
the busiest quarter of the year. Growth from our Digital Automation
platform benefited from the solid level of booking experienced
earlier in the year, driven the fast adoption of our financial
automation solutions. This positive trend is expected to continue
in Q4.
This solid performance has been partially
offset by the high year-over-year comparison basis in Mail hardware
sales which led to an organic revenue decline higher than in recent
quarters. Business disruptions caused by the Milton hurricane in
the US in October also impacted our Mail hardware sales in the
quarter.
As we are heading into the fourth quarter,
the solid organic growth trend in subscription-related revenue from
our Digital and Lockers solutions, combined with an expected return
to a normalized Mail decline, make us confident in our ability to
deliver full year organic growth in revenue and in current EBIT, in
line with our guidance.”
Comments on Q3 and 9M 2024
performance
Group revenue came in at
€797 million in 9M 2024, a 2.4% increase on a reported
basis, and +0.6% organic growth compared to 9M 2023,
in line with Quadient’s expectations. Reported growth includes a
negative currency impact of €3 million and a positive scope effect
of €17 million, which is related to the acquisition of
Daylight (e-forms capability for Digital) in September 2023 and to
the acquisition of Frama (Mail consolidation in Europe) in
February 2024. In Q3 2024, reported revenue growth stood at
+0.8% and organic revenue growth at +0.3% compared to Q3 2023.
Subscription related revenue (€572 million, 72%
of total sales) increased by +1.4% organically over 9M 2024, with
an acceleration in Q3 2024, up 2.6% against Q3 2023, driven by a
double-digit organic increase in Digital and in Lockers.
Non-recurring revenue slightly decline by 1.2% organically over 9M
2024, including a stronger decline in Q3 2024 at -5.3% essentially
reflecting a high comparison basis in Mail hardware sales with a
deal worth more than €3 million signed with NBT Norway in Q3
2023.
By geography, North America (58% of revenue)
continued to outperform other regions with a +2.9% organic growth
achieved in 9M 2024, while Main European countries (34% of revenue)
had a steady performance (at -1.6%). The International segment (8%
of revenue) was notably impacted by the high basis of comparison in
Mail in Q3.
Consolidated revenue by
solution
Q3 2024 consolidated revenue
|
In € million |
Q3 2024 |
Q3 2023
restated (a) |
Change |
Organic change |
|
Digital |
65 |
60 |
+8.0% |
+8.7% |
|
Mail |
175 |
180 |
(3.0)% |
(4.1)% |
|
Lockers |
24 |
21 |
+12.3% |
+14.3% |
|
Group total |
263 |
261 |
+0.8% |
+0.3% |
(a) The full-year 2023 financial statements
published in March 2024 reflected Quadient’s decision to review the
future of its Mail activity in Italy with a view to divest this
subsidiary within the next 12 months.
As in full-year 2023 statements, Q3 2023 revenue from the
afore-mentioned subsidiary is not included in the consolidated
revenue of the Group as it is recorded as discontinued operations.
This is still the case in Q3 2024. |
9M 2024 consolidated revenue
|
In € million |
9M 2024 |
9M 2023
restated(a) |
Change |
Organic change |
|
Digital |
194 |
179 |
+8.2% |
+6.8% |
|
Mail |
536 |
533 |
+0.6% |
(1.7)% |
|
Lockers |
67 |
66 |
+0.8% |
+2.9% |
|
Group total |
797 |
778 |
+2.4% |
+0.6% |
(a) The full-year 2023 financial statements
published in March 2024 reflected Quadient’s decision to review the
future of its Mail activity in Italy with a view to divest this
subsidiary within the next 12 months.
As in full-year 2023 statements, 9M 2023 revenue from the
afore-mentioned subsidiary is not included in the consolidated
revenue of the Group as it is recorded as discontinued operations.
This is still the case in 9M 2024. |
Digital
In 9M 2024, revenue from Digital reached
€194 million, a 6.8% organic
increase (+8.7% in Q3 2024 vs. Q3 2023)
and +8.2% on a reported basis
(including the contribution from Daylight) compared to 9M 2023.
This solid performance was driven by
subscription-related revenue which recorded a strong 10.1%
organic growth in 9M 2024, driven by an
acceleration in Q3 2024 (+12.9% vs Q3
2023), including a high 20% increase in North America and continued
positive commercial trends across the platform with further solid
cross-selling and up-selling. Subscription-related revenue
now represents €161 million or 83% of
Digital total sales, a further increase from 80%
in 9M 2023. The share of SaaS customers stands at
84% at the end of October 2024.
At the end of 9M 2024, annual recurring
revenue (ARR), which is a forward-looking indicator of
future subscription-related revenue, reached
€226 million, vs. €206 million at the end of
FY 2023, representing a 13.4%
organic(3)
growth on an annualized basis.
Regarding the upcoming e-invoicing regulation in
France, which is due to progressively come into force between 2026
and 2028, the role of Partner Dematerialization Platforms (PDP)
will be reinforced by the closing of the French free public
invoicing portal project (PPF). Being registered as a PDP in France
reinforces Quadient’s positioning as a partner of choice
e-invoicing thanks to:
- its large Mail
customer base;
- its complete
suite of financial automation and digital document processing
solutions.
More generally, in Europe, the EU
ViDA(4) regulation will drive
digital invoicing across Europe to modernize VAT systems and
address Europe VAT fraud gap.
Mail
Mail revenue reached
€536 million in 9M 2024, a 1.7% decline on an
organic basis (-4.1% in Q3 2024 vs. Q3 2023). 9M 2024
reported growth stood at +0.6%, including the contribution
of Frama.
Hardware sales recorded a 0.7% organic
growth in 9M 2024, a positive performance despite the
-7.0% decline registered in Q3 2024, reflecting:
- a high
comparison basis due to the more than €3 million deal signed with
NBT Norway in Qv3 2023 ; and
- the temporary
business disruption caused by the Milton hurricane in Florida.
Subscription-related revenue (€369 million or
69% of Mail sales) continued to record a slow organic decline
(-2.8% in 9M 2024), including the impact from lower supplies’
orders.
In Q3 2024, Quadient made further progress in
the deployment of new mail products and solutions. The Group signed
in Q3 2024 a USD 1 million contract with a large U.S
federal agency, which already operates 60 Quadient mailing systems,
for a comprehensive mail modernization project to enhance process
efficiency. In addition, Quadient launched a new version of its
high-end folder inserter dedicated to production mail (DS 1200
document system). A first contract has already been signed early Q4
2024 in the U.S. encompassing 10 DS 1200 units.
At the end of October 2024, already 40% of
Quadient installed base has been upgraded with its newest
technology.
Lockers
Lockers revenue reached €67
million in 9M 2024, a 2.9% increase on an organic basis
and +0.8% on a reported basis compared to 9M 2023. In Q3 2024,
however, Lockers revenue growth showed significant acceleration at
+14.3% organically compared to Q3 2023.
Subscription-related revenue increased
by 8.7% organically in 9M 2024 (+15.7% in Q3
2024 vs Q3 2023), benefiting from:
- the continued
strong volumes ramp up in the UK and the French
open networks;
- an acceleration
in the U.S. thanks to new initiatives for end-user management
programs launched in the region;
- a resilient
performance in Japan, despite an unfavorable e-commerce
environment.
Overall, subscription-related revenue
stood at €43 million or 64% of total revenue in 9M 2024,
vs. 61% in 9M 2023.
Non-recurring revenue (license
& hardware sales and professional services) declined by 6.2%
organically in 9M 2024 but delivered a solid 12.1%
increase in Q3 2024 thanks to an
improvement in unit installations in North America and a
large hardware deal signed in International. Quadient’s global
locker installed base reached c.22,000 units at the end of
9M 2024 vs. c.20,200 units at the end of
FY 2023. This is reflecting the stronger pace of
installation of new lockers, notably in the UK, fueled by
the partnerships signed by Quadient to host parcel lockers in new
prime locations.
In Japan (International),
Quadient released a new mobile application to enable local
businesses to offer parcel locker delivery services to their
customers. This application aims at maximizing lockers’
usage thanks to an enhanced customer experience compared to
traditional delivery. Its ease of use and flexibility enable the
end-users to pick up a parcel in any locker of Quadient’s
network.
In France, Quadient added open-network options
to the click & collect lockers configuration installed at
Decathlon stores. This is providing all Quadient’s carrier partners
with the opportunity to deliver third party products in Decathlon
lockers, extending the range of parcel flow consolidation options.
The carriers using Quadient French open network
are GLS, Relais Colis, UPS, Pickup, Colissimo/Chronopost
and DHL.
DISCONTINUED OPERATIONS
The Italian Mail subsidiary was reclassified as
discontinued operations under IFRS 5 in full-year 2023. An
agreement for its sale has been signed with a local mail
distribution company in July 2024. The deal was closed in October
2024.
FY 2024 GUIDANCE
Quadient confirms its FY 2024 financial guidance
of organic growth at both revenue and current EBIT levels. While
the Q3 2024 decline in Mail hardware sales was expected (due to a
high comparison basis), it was amplified by the business disruption
caused by the Milton hurricane in Florida. On the other hand, both
Digital and Lockers delivered improved performance, in line with
the medium-term ambitions announced during the Capital Markets
Day.
Q3 2024 BUSINESS HIGHLIGHTS
Quadient receives 'AA' MSCI ESG rating,
recognizing longstanding commitment to Sustainability and Corporate
Social Responsibility
On 9 October 2024, Quadient announced it has been awarded an 'AA'
rating in the MSCI ESG Ratings of September 2024. For the ninth
consecutive year, MSCI has placed Quadient in the Leaders category,
recognizing its strong performance among global peers and its
dedication to sustainability, a reflection of the company’s
consistent efforts in managing environmental, social and governance
(ESG) risks and opportunities.
Quadient secures new c.USD 1-million
contract with U.S. federal agency for mail modernization
project
On 21 October 2024, Quadient announced that a large U.S. federal
government agency, which already operates 60 Quadient mailing
systems, has awarded Quadient a contract worth nearly USD 1 million
for a comprehensive mail modernization project to enhance process
efficiency. This opportunity, secured through one of Quadient’s
business partners, highlights Quadient's commitment to fostering
long-term customer relationships and developing strategic
partnerships to better serve customers while reaching new
businesses in need of process automation platforms.
Co-op teams up with Quadient to deliver
parcel locker convenience in communities in the UK
On 24 October 2024, Quadient has partnered with Co-op in the United
Kingdom to deliver further parcel locker growth and added
convenience to its communities. The partnership to supply Parcel
Pending by Quadient lockers to Co-op’s stores, aims to align
Co-op’s footprint in the heart of local communities with the
continued growth in consumer demand for safe, secure and accessible
parcel lockers.
Quadient secures €25 million
Schuldschein facility from EBRD
to finance R&D programs in Czech Republic
On 30 October 2024, Quadient announced that it has secured a new
€25 million Schuldschein facility from the European
Bank of Reconstruction and Development (EBRD) with maturities
spread equally between 5 and 7 years. The Schuldschein
loan from the EBRD aims at financing R&D programs at Quadient’s
state of the art Digital R&D center in Hradec Králové, Czech
Republic.
POST-CLOSING EVENTS
Quadient Strengthens Leadership Position
in the 2024 Top 250 Ranking of French Software
Companies
On 21 November 2024, Quadient announced that it
has achieved considerable progress in the prestigious Top 250
ranking of French software companies published by EY and Numeum.
Quadient advanced to the
11th
position in the overall ranking, up from
15th in 2023, and achieved second place
in the "Horizontal Publishers" category, rising from fifth last
year. The progress highlights Quadient’s strong performance and
unwavering focus on innovation and customer success.
Quadient and DECATHLON Expand Parcel Locker
Partnership in France with Additional Stores and
Services
On 25 November 2024, Quadient announced new momentum in its project
with DECATHLON, the globally recognized multi-specialist sports
brand. Over the past 12 months, the partnership has resulted in the
installation of more than 140 additional lockers across DECATHLON
stores in France. This expansion brings the total number of
equipped locations to 210, a substantial increase from just 70 in
May 2022.
To know more about Quadient’s news flow,
previous press releases are available on our website at the
following address: https://invest.quadient.com/en/newsroom.
CONFERENCE CALL &
WEBCAST
Quadient will host a
conference call and webcast today at 6:00 pm Paris time (5:00 pm
London time).
To join the webcast,
click on the following link: Webcast.
To join the conference
call, please use one of the following phone numbers:
▪ France: +33 (0) 1 70
37 71 66.
▪ United States: +1
786 697 3501.
▪ United Kingdom
(standard international): +44 (0) 33 0551 0200.
Password: Quadient
A replay of the
webcast will also be available on Quadient’s Investor Relations
website for 12 months.
Calendar
- 26 March 2025:
Q4 sales and Full-year 2024 results release (after
close of trading on the Euronext Paris regulated market).
About Quadient®
Quadient is a global
automation platform provider powering secure and sustainable
business connections through digital and physical channels.
Quadient supports businesses of all sizes in their digital
transformation and growth journey, unlocking operational efficiency
and creating meaningful customer experiences. Listed in
compartment B of Euronext Paris (QDT) and part of the CAC® Mid
& Small and EnterNext® Tech 40 indices, Quadient shares
are eligible for PEA-PME investing.
For more information about Quadient, visit
https://invest.quadient.com/en/.
Contacts
Catherine Hubert-Dorel, Quadient
+33 (0)1 45 36 30 56
c.hubert-dorel@quadient.com
financial-communication@quadient.com |
OPRG Financial
Fabrice Baron
+33 (0)6 14 08 29 81
fabrice.baron@omnicomprgroup.com |
Caroline Baude, Quadient
+33 (0)1 45 36 31 82
c.baude@quadient.com |
|
APPENDIX
Digital: New name for Intelligent Communication
Automation
Mail: New name for Mail-Related Solutions
Lockers: New name for Parcel Locker Solutions
Q3 2024 and 9M 2024 consolidated
revenue
Q3 2024 consolidated revenue by
geography
|
In € million |
Q3 2024 |
Q3 2023
restated (a) |
Change |
Organic
change |
|
North America |
153 |
152 |
+0.6% |
+3.0% |
|
Main European countries(b) |
87 |
83 |
+5.1% |
(1.6)% |
|
International(c) |
23 |
26 |
(11.9)% |
(9.1)% |
|
Group total |
263 |
261 |
+0.8% |
+0.3% |
(a) The full-year 2023 financial statements
published in March 2024 reflected Quadient’s decision to review the
future of its Mail activity in Italy with a view to divest this
subsidiary within the next 12 months.
As in full-year 2023 statements, Q3 2023 revenue from the
afore-mentioned subsidiary is not included in the consolidated
revenue of the Group as it is recorded as discontinued operations.
This is still the case in Q3 2024.
(b) Including Austria, Benelux, France, Germany,
Ireland, Italy (excluding Mail), Switzerland, and the United
Kingdom.
(c) International includes the activities of
Digital, Mail and Lockers outside of North America and the Main
European countries. |
9M 2024 consolidated revenue by
geography
|
In € million |
9M 2024 |
9M 2023
restated (a) |
Change |
Organic
change |
|
North America |
460 |
447 |
+2.9% |
+2.9% |
|
Main European countries(b) |
269 |
256 |
+5.0% |
(1.6)% |
|
International(c) |
68 |
75 |
(9.4)% |
(4.8)% |
|
Group total |
797 |
778 |
+2.4% |
+0.6% |
(a) The full-year 2023 financial statements
published in March 2024 reflected Quadient’s decision to review the
future of its Mail activity in Italy with a view to divest this
subsidiary within the next 12 months.
As in full-year 2023 statements, 9M 2023 revenue from the
afore-mentioned subsidiary is not included in the consolidated
revenue of the Group as it is recorded as discontinued operations.
This is still the case in 9M 2024.
(b) Including Austria, Benelux, France, Germany,
Ireland, Italy (excluding Mail), Switzerland, and the United
Kingdom.
(c) International includes the activities of
Digital, Mail and Lockers outside of North America and the Main
European countries. |
(1) 9M 2024 sales are
compared to 9M 2023 sales, to which is added pro rata temporis the
revenue of Daylight and Frama for a consolidated amount of €17
million. The currency impact is negative for €3
million.
(2) Q3 2024 sales are compared to Q3 2023 sales, to
which is added pro rata temporis the revenue of Daylight and Frama
for a consolidated amount of €5 million. The currency impact
is negative for €4 million.
(3) 9M 2024 ARR is
impacted by a €0.7 million negative currency effect vs 31 January
2024.
(4) ViDA: VAT in Digital Age.
QUADIENT (EU:QDT)
Historical Stock Chart
From Nov 2024 to Dec 2024
QUADIENT (EU:QDT)
Historical Stock Chart
From Dec 2023 to Dec 2024
