• Cegedim Full year 2024 results: Operating profitability improved

    Источник: Nasdaq GlobeNewswire / 27 мар 2025 12:45:00   America/New_York

     



    PRESS RELEASE

    Quarterly financial information as of December 31, 2024
    IFRS - Regulated information - Audited

    Full year 2024 results: Cegedim’s operating profitability improved

    • 2024 revenues rose 6.3% to €654.5 million
    • Recurring operating income(1) increased 24.7% to €39.5 million
    • Recurring operating margin came to 6.0% in 2024, up from 5.1% in 2023

    Boulogne-Billancourt, France, March 27, 2025, after the market close

    Cegedim generated consolidated revenues of €654.5 million in 2024, an increase of 6.3%, and recurring operating income(1) of €39.5 million, a 24.7% increase. Recurring operating margin was 6.0%, up from 5.1% one year earlier.

    Consolidated income statement

     20242023Change
     (in €m)(in %)(in €m)(in %)(in %)
    Revenue 654.5100%616.0100.0%+6.3%
    EBITDA(1)123.618.9%108.817.7%+13.5%
    Depreciation and amortization-84.1-12.8%-77.2-12.5%+9.0%
    Recurring operating income(1)39.56.0%31.75.1%+24.7%
    Other non-recurring operating income and expenses(1)-28.4-4.3%-11.7-1.9%-143.0%
    Operating income11.11.7%20.03.2%-44.5%
    Financial result-20.9-3.2%-11.9-1.9%-75.8%
    Total tax-5.8-0.9%-14.8-2.4%-61.1%
    Net profit attributable to owners of the parent-14.7-2.2%-7.4-1.2%-98.6%
    Earnings per share (in euros)-1.1--0.5--120.0%

    Consolidated revenues: rose €38.5 million, or +6.3%, to €654.5 million in 2024 compared with €616.0 million in 2023. The positive scope effect of €8.2 million, or 1.4%, was attributable to the first-time consolidation of Visiodent starting March 1, adjusted for the deconsolidation of INPS from Cegedim’s accounts since December 10. The positive currency impact was €1.1 million, or 0.2%. Like-for-like(2) revenue increased +4.7% over the period.

    Recurring operating income(1): rose €7.8 million in 2024 to €39.5 million compared with €31.7 million in 2023. It amounted to 6.0% of 2024 revenue compared with 5.1% in 2023. This increase was driven chiefly by the profitability improvement in the insurance businesses, especially the Software and BPO offerings, as well as further strong growth in Cegedim Business Services in Human Resources and in digitalized flow services for businesses and healthcare. Another highlight of the year’s results was the very strong performance of the marketing in pharmacies offering and the positive contribution from the first-time consolidation of Visiodent.

    Other non-recurring operating income and expenses(1): amounted to an expense of €28.4 million in 2024 compared with an income of €11.7 million in 2023. Following the voluntary placement of its INPS subsidiary in administration, the Group recognized a capital loss of €8.8 million. The remainder consists of an €8.6 million asset impairment charge on its software for pharmacies business in France and the United Kingdom and a goodwill impairment charge of €4.7 million related to its Clamae subsidiary. Of this total of €28.4 million, the cash impact was only €5.7 million, related principally to payroll costs.

    Depreciation and amortization expenses: rose €6.9 million in 2024. Amortization of R&D costs rose €6.0 million year on year compared with 2023, and depreciation of capital expenditures rose €2.4 million as a result of investments in the operations of cegedim.cloud and C-Media. Amortization of intangible assets and depreciation of right-of-use assets declined by €1.5 million.

    EBITDA: the €14.8 million or 13.5% increase between 2023 and 2024 was the result of a stabilization in payroll costs, external expenses and purchases used relative to the pace of revenue growth, reflecting the special attention the Group paid to cost control.

    Financial result: was a loss of €20.9 million, down €9.0 million compared with 2023, owing to a provision related to the voluntary placement of INPS in administration and the increase in interest expense owing to the new financing arrangement put in place in the summer.

    Total tax: came to a charge of €5.8 million, down €9.0 million compared with 2023. As a reminder, note that in 2023 the Group made a €12.3 million accounting adjustment to previously recognized deferred tax assets. The adjustment had no cash impact and was intended to reflect recent developments in judicial precedent that led the Group to measure its potential unrealized gain more conservatively.

    Analysis of business trends by division

    in millions of eurosTotalSoftware & ServicesFlowData & MarketingBPOCloud & Support
    Revenue      
    2023 as reported616.0326.695.9114.971.57.1
    2023 reclassified (*)616.0302.393.4114.971.533.9
    2024654.5307.8100.3125.982.737.8
    Change+6.3%+1.8%+7.3%+9.6%+15.8%+11.3%
           
    Recurring operating income(3)      
    2023 as reported31.74.212.115.94.0-4.5
    2023 reclassified (*)31.72.311.215.94.1-1.8
    202439.55.112.516.57.2-1.9
    Change+24.7%+126.7%+11.8%+3.5%+77.2%-5.0%
           
    Recurring operating margin      
    2023 as reported5.1%1.3%12.6%13.9%5.5%-62.9%
    2023 reclassified (*)5.1%0.8%11.9%13.9%5.7%-5.2%
    20246.0%1.7%12.4%13.1%8.7%-4.9%
           

    (*) As of January 1, 2024, our Cegedim Outsourcing and Audiprint subsidiaries—which were previously housed in the Software & Services division—as well as BSV—formerly of the Flow division—have been moved to the Cloud & Support division in order to capitalize on operating synergies between cloud activities and IT solutions integration.

    • Software & Services: 2024 revenue rose 1.8%, boosted by the HR solutions, insurance businesses and the first-time consolidation of Visiodent from March 1, 2024. The pharmacy business and Cegedim Santé felt the impact of comparisons with Ségur public health investment spending, while the international businesses recorded a business contraction owing to the decision to wind down, then shutter its software for doctors business in the United Kingdom.

    Recurring operating income (REBIT) amounted to €5.1 million in 2024, a €2.8 million increase compared with income of €2.3 million in 2023. Of this income, €3.2 million flowed from the firmer business trends at Cegedim Santé, chiefly as a result of the first-time consolidation of Visiodent. This cost control policy together with strong activity levels boosted the Insurance business, and HR solutions also made a positive contribution to the improvement in recurring operating income. The pharmacy software business in France was adversely affected by the slowdown in equipment sales after many pharmacies updated their equipment in 2023. The international businesses recorded a small decrease in their recurring operating income owing to the deconsolidation of INPS, which incurred expenses for the Pharmacy business in the United Kingdom.

    Software & ServicesChange
    2024/2023 reclassified





    in millions of euros20242023 reclassified (*)2023 as reported
    Revenue307.8302.3326.6+5.5+1.8%
    Cegedim Santé80.276.576.5+3.7+4.8%
    Insurance, HR, Pharmacies, and other services176.7173.3197.6+3.4+2.0%
    International businesses50.952.552.5-1.6-3.0%


    Recurring operating income(4)5.12.34.2+2.8+126.7%
    Cegedim Santé0.3-2.9-2.9+3.2+111.9%
    Insurance, HR, Pharmacies, and other services13.312.814.7+0.5+4.4%
    International businesses-8.5-7.6-7.6-0.9-12.4%

    (*) As of January 1, 2024, our Cegedim Outsourcing and Audiprint subsidiaries—which were previously housed in the Software & Services division—have been moved to the Cloud & Support division in order to capitalize on operating synergies between cloud activities and IT solutions integration.

    • Flow: Revenue rose 7.9%, propelled by e-business, e-invoicing, and digitized data exchanges (+5.6%), and by the Third-party payer business (+9.9%), which was supported by the powerful momentum of its fraud detection and long-term illness detection offerings.         
      The €1.3 million improvement, or +11.8% increase, in recurring operating income was driven by the rapid growth in the business and by a tight grip on expenses and payroll costs.
    • Data & Marketing: Revenue came to €125.9 million, up +9.6% on the back of a record performance by the Marketing division. It posted growth of 19.9%, underpinned by its phygital media communication strategy and boosted by special campaigns during the Olympic Games. Even though performance in 2023 was highly impressive, the Data business still managed to post growth of 1.6% in 2024.

    The division’s recurring operating income(1) grew by €0.6 million or +3.5% owing to the Marketing division converting robust revenue growth into operating income growth. On the other hand, the slowdown in international Data was a drag on the division’s profitability.

    • BPO: the division’s revenues grew 15.8% in 2024 compared with 2023, owing principally to services managed on behalf of health and personal protection insurers, which grew by 20.2% as a result of its flourishing overflow business and a favorable comparison linked to the start of the new contract with Allianz on April 1, 2023. Revenues from services management on behalf of HR departments rose 5.5%.

    The division’s recurring operating income rose by €3.1 million, or +77.2%. Most of this increase came from BPO Business services, which benefited from the tight control of payroll costs amid revenue growth and an allocation of its internal IT expenses more appropriate for its business level. The business for insurers posted an increase in recurring operating income, despite the costs incurred on the Allianz contract, as a result of the improvement in the profitability of other BPO contracts and, crucially, the impact of its flourishing overflow offering.

    • Cloud & Support: the Cloud & Support division posted a revenue increase of €3.9 million on the back of its expanded range of sovereign cloud-backed products and services, which earned the ANSSI security visa for SecNumCloud

    certification. The 2024 recurring operating loss(1) was €1.9 million, almost stable compared with 2023, demonstrating the Cloud business’ ability to offset the support activity expenses.

    Highlights

    To the best of the Company’s knowledge, there were no events or changes during 2024 that would materially alter the Group’s financial situation.

    • Acquisition of Visiodent

    On February 15, 2024, Cegedim Santé acquired Visiodent, a key French publisher of management software for dental practices and health clinics. Visiodent launched the market’s first 100% SaaS solution, Veasy, at a time of significant expansion for those organizations. Its users now include the country’s largest nation-wide networks of health clinics, both cooperative and privately owned, as well as several thousand dental surgeons in private practice. Visiodent generated revenue of c.€10 million in 2023 and began contributing to Cegedim Group’s consolidation scope on March 1, 2024.

    • INPS

    On December 10, 2024, Cegedim announced that it had voluntarily placed its UK subsidiary—INPS, which sells software for doctors—under administration.

    • New financing arrangement

    On July 31, 2024, Cegedim announced that it had secured a new financing arrangement consisting of a €230 million syndicated loan. The arrangement is split into €180 million of lines drawn upon closing to refinance the Group’s existing debt (RCF and Euro PP, which were to mature in October 2024 and October 2025 respectively) and an additional, undrawn revolving credit facility (RCF) of €50 million. This new financing arrangement will bolster the Group’s liquidity and extend the maturity of its debt to, respectively, 5 years (€30 million, payments every six months); 6 years (€60 million, repayable upon maturity); and 7 years (€90 million, repayable upon maturity).

    • Tax

    Cegedim S.A. has been subject to two tax audits since 2018, which have resulted in reassessments relating to the use of tax-loss carryforwards contested by the tax authorities. After consultation with its lawyers and based on the applicable tax law and ample precedent, Cegedim S.A. believes that the tax authorities’ proposed reassessments are unwarranted. As a result, the Company has appealed the decision and continues to explore its options for contesting the reassessments.

    In the event of an unfavorable ruling, based on the tax losses used up to December 31, 2024, Cegedim S.A. would have to book tax expense of €30.8 million in its P&L, of which it has already paid €23 million, and to cancel €4.1 million in deferred tax assets, which would not entail any cash outflow.

    In the last quarter of 2023, the Company referred this dispute to the administrative court, and the dispute is likely to continue for several years.

    Significant transactions and events post December 31, 2024

    To the best of the Company’s knowledge, there were no post-closing events or changes after December 31, 2024, that would materially alter the Group’s financial situation.

    Outlook

    Based on the currently available information, the Group expects 2025 like-for-like(1) revenue growth to be in an approximative range of 2-4% relative to 2024. Recurring operating income should continue to improve, following a similar trajectory to 2024.

    These targets are not forecasts and may need to be revised if there is a significant worsening of geopolitical, macroeconomic, or monetary risks.

    ---------------

    The Audit Committee met on March 26, 2025. The Board of Directors, chaired by Jean-Claude Labrune, met on March 27, 2025. It approved the consolidated financial statements at December 31, 2024, and will ask the Shareholders’ Meeting to approve the financial statements for the year 2024. The consolidated accounts have been audited. The statutory auditors’ report will be issued once the formalities required for submission of the Universal Registration Document have been completed.

    The Universal Registration Document will be available in a few days’ time, in French and in English, on our website.

    ---------

    (1) At constant scope and exchange rates.

    WEBCAST ON MARCH 27, 2025, AT 6:15 PM (PARIS TIME)
    The webcast is available at:www.cegedim.fr/webcast



    The fiscal 2024 results presentation is available on the website:

    https://www.cegedim.fr/finance/documentation/Pages/presentations.aspx


    Financial calendar for 2025

    2025March 28 at 10:00 am

    April 24 after the close

    June 13 at 9:30 am

    July 24 after the close

    September 25 after the close

    September 26 at 10:00 am

    October 23 after the close    		SFAF meeting

    Q1 2025 revenues

    Shareholders’ meeting

    H1 2025 revenues

    H1 2025 results

    SFAF meeting

    Q3 2025 revenues

    Financial calendar: https://www.cegedim.fr/finance/agenda/Pages/default.aspx

    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 March 27, 2025, 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 Chapter 3, “Overview of the financial year”, section 3.6, “Outlook”, of the 2023 Universal Registration Document filed with the AMF on April 3, 2024, under number D.24-0233.

    About Cegedim:
    Founded in 1969, Cegedim is an innovative technology and services group 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 nearly
    6,700 people in more than 10 countries and generated revenue of over €654 million in 2024.
    Cegedim SA is listed in Paris (EURONEXT: CGM).
    To learn more please visit: www.cegedim.fr
    And follow Cegedim on X: @Cegedimgroup, LinkedIn, and Facebook.

    Aude Balleydier
    Cegedim
    Media Relations and
    Communications Manager

    Tel.: +33 (0)1 49 09 68 81
    aude.balleydier@cegedim.fr    		Damien Buffet
    Cegedim
    Head of
    Financial Communication

    Tel.: +33 (0)7 64 63 55 73
    damien.buffet@cegedim.com    		Céline Pardo
    Becoming RP Agency
    Media Relations Consultant


    Tel.:         +33 (0)6 52 08 13 66
    cegedim@becoming-group.com    		 

    Appendix

    Consolidated financial statements at December 31, 2024

    • Assets at December 31, 2024
    In thousands of euros12/31/202412/31/2023
    Goodwill arising on acquisitions 235,747 199,787
    Development costs857 1,562
    Other intangible assets190,555 192,616
    Intangible assets191,412 194,178
    Land594 544
    Buildings1,451 1,660
    Other property, plant and equipment 51,539 45,829
    Advances and non-current assets in progress 4,876 831
    Right-of-use assets                  86,273                   89,718
    Property, plant and equipment144,733                 138,582
    Equity investments0 0
    Loans14,156 15,332
    Other financial assets5,820 5,230
    Financial assets excluding investments in affiliates19,976 20,563
    Investments in affiliates15,354 22,065
    Deferred tax assets16,597 19,747
    Prepaid expenses: long-term proportion- -
    Non-current assets623,819                 594,922   
    Goods held for resale6,741 5,498
    Advances and deposits received on orders1,296 3,703
    Trade receivables: short-term portion186,003 175,199
    Other receivables: short-term portion66,945 59,563
    Current tax credits29,152 16,495
    Cash equivalents0 0
    Cash49,577 46,606
    Prepaid expenses: short-term portion23,357 22,082
    Current assets363,071 329,146
    Total assets 986,890 924,068

    • Liabilities and equity at December 31, 2024
    In thousands of euros12/31/202412/31/2023
    Share capital 13,432 13,337
    Retained earnings268,728 282,521
    Group unrealized exchange gains/losses-3,105 -12,275
    Group profit (loss)-14,707 -7,407
    Shareholders’ equity, Group share264,348 276,175
    Non-controlling interest18,156 18,381
    Equity282,503             294,556   
    Financial liabilities223,777 188,546
    Lease liabilities77,639 78,761
    Deferred tax liabilities1,654 5,600
    Post-employment benefit obligations33,024 31,007
    Provisions2,073 2,521
    Non-current liabilities338,167             306,435   
    Financial liabilities10,315 3,006
    Lease liabilities14,118 14,789
    Trade payables and related accounts71,784 61,734
    Current tax liabilities279 235
    Tax and social security liabilities 128,289 121,371
    Provisions1,502 1,730
    Other liabilities139,932 120,212
    Current liabilities366,220             323,077   
    TOTAL Liabilities and equity            986,890               924,068  
    • Income statement as of December 31, 2024
    In thousands of euros12/31/202412/31/2023
    Revenue 654,496 615,995
    Purchases used-29,565 -28,547
    External expenses-143,770 -138,544
    Taxes and duties-4,468 -5,352
    Payroll costs-349,803 -331,748
    Impairment of trade receivables and other receivables and on contract assets-1,984 -2,444
    Allowances to and reversals of provisions-4,832 -2,714
    Other operating income and expenses1,640 431
    Share of profit (loss) from affiliates included in operating income1,853 1,757
    EBITDA(1)123,567 108,834
    Depreciation expenses other than right-of-use assets-66,934 -59,471
    Depreciation expenses of right-of-use assets-17,149 -17,693
    Recurring operating income(1)39,484 31,670
    Impairment of goodwill arising on acquisitions-4,667 -
    Non-recurring operating income and expenses-23,730 -11,687
    Other non-recurring operating income and expenses(1)-28,397 -11,687
    Operating income11,087 19,983
    Income from cash and cash equivalents1,650 475
    Cost of gross financial debt-17,902 -11,742
    Other financial income and expenses-4,629 -614
    Financial result-20,881 -11,881
    Income taxes-4,010 -4,509
    Deferred taxes-1,770 -10,336
    Total taxes-5,780 -14,845
    Share of profit (loss) from affiliates 440 -1,195
    Consolidated net profit-15,134 -7,937
    Group share -14,708 -7,407
    Non-controlling interests-426 531
    Average number of shares excluding treasury stock13,706,333 13,610,429
    Earnings per share (in euros) -1.1-0.5

    (1) Alternative performance indicator.

    • Cash flow statement as of December 31, 2024
    In thousands of euros12/31/202412/31/2023
    Consolidated net profit-15,133 -7,937
    Share of profit (loss) from affiliates-2,293 -561
    Depreciation and amortization expenses and provisions 93,449 84,010
    Capital gains or losses on disposals of operating assets8,030 -1,816
    Cash flow after cost of net financial debt and taxes84,053 73,695
    Cost of net financial debt20,881 11,881
    Tax expense5,780 14,845
    Cash flow from operating activities before tax and interest110,714 100,420
    Tax paid-16,216 -4,233
    Change in working capital requirement: requirement--
    Change in working capital requirement: release7,350 1,736
    Cash flow generated from operating activities after tax paid and change in working capital requirements 101,848 97,923
    Acquisitions of intangible assets-58,607 -53,538
    Acquisitions of property, plant and equipment-31,309 -21,952
    Acquisitions of financial assets--1,036
    Disposals of property, plant, and equipment and of intangible assets4,969 2,598
    Disposals of financial assets934 805
    Change in deposits received or paid3,904 83
    Impact of changes in consolidation scope-36,878 -3,371
    Dividends received from outside the Group5,663 1,114
    Net cash flow used in investing activities -111,324 -75,296
    Capital increase9850
    Dividends paid to minority shareholders of consolidated companies-105 -2
    Dividends paid to shareholders of the parent company- -
    New borrowings180,000 0
    Repayments of borrowings-136,398 -263
    Employee profit sharing-445 -65
    Repayment of lease liabilities-17,283 -19,796
    Interest paid on borrowings -8,880 -5,050
    Other financial income received4,098 966
    Other financial expenses paid -8,856 -6,861
    Net cash flow generated/(used in) financing activities 13,116 -31,071
    Change in net cash excluding currency impact 3,640 -8,444
    Impact of changes in foreign currency exchange rates-672 -503
    Change in net cash 2,968 -8,947
    Opening cash46,606 55,553
    Closing cash49,574 46,606
    • Financial covenants
    In thousands of euros12/31/2024Criterion
    Net debt(1) 172,489 
    EBITDA(2)103,551 
    Leverage ratio1.67< 2.5


    In thousands of euros12/31/2024Criterion
    Interest expense 10,192 
    EBITDA(2)103,551 
    Interest cover ratio10.16> 4.5

    (1)   excluding employee profit sharing liabilities, the FCB loan,and IFRS 16 liabilities and excluding cash allocated to BPO insurance activities
    (2)   Recurring EBITDA excluding IFRS 16 amortization impact

    The Group complied with all these covenants as of December 31, 2024, and there is no foreseeable risk of default.

    (1)   Alternative performance indicator. See pages 112–113 of the 2023 Universal Registration Document.
    (2)   At constant scope and exchange rates.

    (1)   Alternative performance indicator. See pages 112–113 of the 2023 Universal Registration Document.

    (1)   Alternative performance indicator. See pages 112–113 of the 2023 Universal Registration Document.

    Attachment


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