• Cegedim full-year 2021 results: highly resilient business model

    ソース: Nasdaq GlobeNewswire / 24 3 2022 12:45:00   America/New_York

     
     

    PRESS RELEASE

    Quarterly financial information as of December 31, 2021
    IFRS - Regulated information - Audited

    Cegedim full-year 2021 results: highly resilient business model

    • 2021 revenues up 5.6% to €524.7m
    • Recurring operating income(1) down 4.4% to €39.9m
    • Net profit attributable to owners of the parent up 2.4x to €26.2m
    • Proposed dividend of €0.50 per share

    Boulogne-Billancourt, France, March 24, 2022, after the market close

    Cegedim generated consolidated 2021 revenues of €524.7 million, an increase of 5.6% as reported and 5.0% like for like(2) compared with a year ago. Recurring operating income fell 4.4% to €39.9 million, and net profit attributable to the owners of the parent rose 142.0% to €26.2 million.

    “We have a solid foundation in the form of a relevant, resilient business model and talented, motivated teams. We turned those resources into a remarkable performance in 2021, with revenues up 5.6% to €524.7 million and net profit attributable to the owners of the parent up 2.4-fold to €26.2 million.
    2022 is full of promise. We are giving Cegedim Santé the capital it needs to grow: exclusive talks with social protection groups Malakoff Humanis, Groupe VYV, and PRO BTP will result in a €65 million reserved capital increase. The deal also creates a compelling partnership in telehealth.
    Uncertainty hangs over the start of this year, but we will continue to innovate and to strengthen our sales and R&D teams, and we are confident in our 2022 performance,” said Laurent Labrune—Deputy Managing Director of Cegedim.

    Consolidated income statement

     20212020Change
     (in €m)(in %)(in €m)(in %)(in %)
    Revenue524.7100.0%496.9100.0%+5.6%
    EBITDA (1)104.720.0%104.221.0%+0.5%
    Depreciation & amortization(64.8)(12.3)%(62.5)(12.6)%+3.8%
    Recurring operating income(1)39.97.6%41.78.4%-4.4%
    Other non-recurring operating income and expenses(1)3.80.7%(19.9)(4.0)%n.m.
    Operating income43.78.3%21.84.4%+100.2%
    Financial result(10.4)(2.0)%(8.6)(1.7)%+20.0%
    Total tax(5.8)(1.1)%(2.0)(0.4)%+196.8%
    Net profit attributable to owners of the parent26.25.0%10.82.2%+142.0%
    Recurring earnings per share(1) (in euros)1.8-1.2-+50.0%
    Earnings per share (in euros)1.9-0.8-+137.5%

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    (1)    Alternative performance indicator. See pages 137-139 of the 2020 Universal Registration Document.

    (2)    At constant scope and exchange rates.

    Consolidated revenues increased by €27.8 million, or 5.6%, to €524.7 million in 2021 compared with €496.9 million in 2020. The positive scope effect of €1.3 million, or 0.3pp, was attributable to Cegedim’s first-time consolidation of new acquisitions Médimust and Kobus Tech. The positive currency impact of €1.6 million, or 0.3pp, was mainly due to the euro’s appreciation against the pound sterling.
    Like-for-like(2) revenues climbed 5.0% over the period.

    Recurring operating income(1) decreased by €1.8 million, or 4.4%, to €39.9 million in 2021 compared with €41.7 million in 2020. It represented 7.6% of consolidated revenue in 2021, compared with 8.4% in 2020. The decline is chiefly attributable to a €4.5 million negative impact from lower R&D capitalization and an increase in R&D amortization. In addition, other net non-recurring operating expenses(1) fell by €23.7 million compared with 2020.

    Other non-recurring operating income and expenses(1) amounted to income of €3.8 million in 2021 compared with a charge of €19.9 million in 2020. The 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. This payment was partly offset by other expenses, notably fees related to disputes or the winding up of non-recurring operations. In 2020 the amount was mainly attributable to €15.0 million of impairments of certain intangible assets related to software businesses, notably on products for doctors in the UK and Belgium.

    Depreciation and amortization expenses increased by €2.3 million, or 3.8%, to €64.8 million in 2021 compared to €62.5 million in 2020. Amortization related to lease contracts (IFRS 16) was virtually stable, at €16.5 million in 2021 compared to €15.9 million in 2020. The amortization of capitalized R&D expenses over the period increased by €2.7 million, or 9.0%, to €33.3 million in 2021 compared to €30.6 million in 2020. The increase was due to higher R&D capitalization in previous years. Other depreciation & amortization declined by €0.9 million to €15.0 million in 2021 from €15.9 million in 2020.

    EBITDA (1) increased by €0.5 million, or 0.5%, to €104.7 million in 2021, compared with €104.2 million in 2020. It represented 20.0% of consolidated revenue in 2021, compared with 21.0% in 2020.

    Financial result increased by €1.7 million, or 20.0%, to €10.4 million in 2021 compared with €8.6 million in 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 relative to December 31, 2020, because the vast majority of debt is at fixed interest rates.

    Total tax came to €5.8 million in 2021 compared with €2.0 million in 2020, an increase of €3.9 million or 196.8%. This change was principally the result of a combination of increased income taxes, especially for French companies, and a decrease in deferred tax assets.

    Net profit attributable to the owners of the parent came to €26.2 million in 2021 compared with €10.8 million in 2020. Recurring earnings per share came to €1.8 in 2021 compared with a profit of €1.2 a year earlier. Earnings per share came to €1.9 in 2021 compared with €0.8 a year earlier.

    Analysis of business trends by division

    • Software & Services
    In millions of euros20212020Change
    Revenue292.0277.2+5.4% | Like for like (2): +4.4%
    Recurring operating income(1)12.823.8(46.1)%
    Margin4.4%8.6%(420) bp
    Operating income 12.36.9+78.9%
    Margin4.2%2.5%+174 bp

    Revenues got a boost from stronger growth in computerization activities for health insurers, bolstered by the resumption of project-based business, which positively affected recurring operating income(1). The HR management outsourcing activity turned in an excellent performance. Growth was also spurred by trading activity in the fourth quarter, which negatively impacted recurring operating income(1).

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    (1) Alternative performance indicator. See pages 137-139 of the 2020 Universal Registration Document.

    (2) At constant scope and exchange rates.

    Sales trends at Cegedim Santé are robust despite the Covid flare-up late in the year, which curtailed sales efforts targeting healthcare professionals and hurt recurring operating income(1). As expected, Maiia, the appointment scheduling business—notably for vaccinations and teleconsultations—doubled its revenues in 2021 compared with 2020. Recurring operating income(1) was hurt by delayed NHS accreditation and increased hiring for sales teams assigned to Cegedim Santé’s latest offerings and for development teams working on innovations and who do not meet the criteria for capitalized costs.

    • Flow
    In millions of euros20212020Change
    Revenue84.279.4+6.1% | Like for like(2): +6.0%
    Recurring operating income(1)11.110.6+4.4%
    Margin13.2%13.4%(22) bp
    Operating income10.910.1+7.2%
    Margin12.9%12.8%+14bp

    The process digitalization and digital data flow business grew despite slowing somewhat in the fourth quarter due to the resurgence of the Covid-19 pandemic. Business in France made a positive contribution to recurring operating income(1), whereas UK and German activities had a negative impact.

    People in France reduced their use of the healthcare system because of public health restrictions, which put a crimp on healthcare flow business related to reimbursements resulting in a slightly negative impact on recurring operating income(1).

    • Data & Marketing
    In millions of euros20212020Change
    Revenue98.487.8+12.1% | Like for like(2): +12.1%
    Recurring operating income(1)14.610.5+39.5%
    Margin14.8%11.9%+292bp
    Operating income14.610.4+41.0%
    Margin14.8%11.8%+304bp

    Data activities experienced strong growth and had their strongest quarter of the year in Q4, strongly boosting recurring operating income(1).

    Digital displays in pharmacies experienced substantial growth over the year but ran into a challenging comparison in Q4, as the business had made up significant ground in the fourth quarter of 2020. 2021 margins at this business were historically high.

    • BPO
    In millions of euros20212020Change
    Revenue47.348.9(3.3)% | Like for like(2): (3.3)%
    Recurring operating income(1)2.5(0.2)n.m.
    Margin5.2%(0.5)%+565bp
    Operating income2.5(0.3)n.m.
    Margin5.2%(0.6)%+575bp

    A significant portion of this division’s business is providing services for insurance companies and mutual insurance providers. It was hurt by a downward adjustment of unit prices, now that the implementation phase is finished, and by less so-called overflow business. However, this was health insurance BPO’s first year in the black in terms of recurring operating income(1) thanks to the automation of certain processes.

    HR BPO revenues rose, which positively affected recurring operating income(1).

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    (1) Alternative performance indicator. See pages 137-139 of the 2020 Universal Registration Document.

    (2) At constant scope and exchange rates.

    • Corporate and others

    2021 revenues fell 24.8% to €2.7 million, and recurring operating income(1) was a profit of €1.1 million compared with a €3.0 million loss a year earlier.

    Highlights

    To the best of the company’s knowledge, apart from those listed below, there were no events or changes during 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 in France 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.

    • Euris litigation

    Cegedim, jointly with IQVIA (formerly IMS Health), is being sued by Euris for unfair competition. Cegedim has asked the court to dismiss the case against the Group. On December 17, 2018, the Paris Commercial Court granted Cegedim’s request, which IQVIA then appealed. On December 8, 2021, the Court of Appeals upheld the judgement in favor of Cegedim.

    After consulting its external legal counsel, the Group had decided not to set aside any provisions.

    • Tax

    On February 21, 2018, Cegedim S.A. received official notice that the French tax authorities planned to perform an audit of its financial statements for the period from January 1, 2015, to December 31, 2016. After consultation with its lawyers and based on ample precedent. the Group believes that the adjustment is unwarranted and continues to explore its options to appeal the decision. The maximum tax liability Cegedim faces as a result of the current audit is €20.3 million at December 31, 2021. Cegedim still believes that there is not enough risk with respect to this amount or to tax loss carryforwards recorded on its consolidated balance sheet (corresponding to €20 million) to jeopardize their valuation.

    On October 21, 2021, Cegedim SA received official notice that the French tax authorities planned to perform an audit of its financial statements for the period from January 1, 2019, to December 31, 2020. This audit is currently being conducted.

    Significant transactions and events post December 31, 2021

    To the best of the company’s knowledge, apart from those listed below, there were no post-closing events or changes that would materially alter the Group’s financial situation.

    • The war in Ukraine

    The Group has no activities or exposed assets in Russia or Ukraine.

    • Cegedim in exclusive talks with mutual insurance groups Malakoff Humanis, Groupe VYV, and PRO BTP regarding acquisition of an equity stake in Cegedim Santé

    On March 1, 2022, Cegedim Group and Malakoff Humanis, Groupe VYV, and PRO BTP announced that they were in exclusive talks regarding the acquisition of an equity stake in Cegedim Santé, the Group subsidiary specialized in digital solutions for healthcare professionals and patients. As part of the deal, Cegedim Santé will simultaneously acquire Groupe VYV subsidiary MesDocteurs, which specializes in telehealth.

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    (1) Alternative performance indicator. See pages 137-139 of the 2020 Universal Registration Document.

    (3) Source: GIE SESAM-Vitale.

    Once negotiations are complete, the deal will be sealed by the signature of an investment agreement and a strategic and industrial partnership between Cegedim, Malakoff Humanis, Groupe VYV, and PRO BTP. The transaction will be complete once employee representatives issue an opinion.

    The deal will involve a reserved capital increase of €65 million, giving Cegedim Santé a post-deal valuation of €360.9 million. Cegedim will continue to fully consolidate Cegedim Santé.

    Dividend distribution policy

    A proposal to pay a dividend in respect of 2021 of €0.50 per share on July 1, 2022, will be put forward at the General Meeting on June 17, 2022.

    Outlook

    Although the impact of the Covid-19 pandemic on business in 2022 is still difficult to assess and despite the economic, geopolitical, and monetary uncertainties facing the world, we are confident we will be able to grow our revenues.

    Thus, for 2022 Cegedim expects like-for-like(2) revenue growth of around 5%. Recurring operating income(1) should remain stable owing to the significant investments planned, especially for Cegedim Santé.

    These targets may need to be revised if there is a sharp resurgence of the Covid-19 pandemic and/or a significant worsening of geopolitical risks.

    The Group does not expect to make any significant acquisitions in 2022.

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    The Audit Committee met on March 23, 2022. The Board of Directors, chaired by Jean-Claude Labrune, met on March 24, 2022, closed the consolidated financial statements at December 31, 2021, and approved the accounts for 2021. The audit procedures of the consolidated financial statements have been performed. The certification report will be issued once the requisite filing procedures for 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 and the Cegedim IR app.

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    WEBCAST ON MARCH 24, 2022, AT 6:15 PM (PARIS TIME)
    The webcast is available at: www.cegedim.fr/webcast
    The full-year 2021 results presentation is available:

    2022 financial calendar

    2022March 25 at 10:00 am


    April 28 after the close

    June 17 at 9:30

    July 28 after the close

    September 20 after the close    		SFAF Meeting - Cegedim Auditorium in Boulogne Billancourt

    Q1 2022 revenues

    Shareholders’ General Meeting

    H1 2022 revenues

    H1 2022 results

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    (1) Alternative performance indicator. See pages 137-139 of the 2020 Universal Registration Document.

    (2) At constant scope and exchange rates.

    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 24, 2022, 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 5,600 people in more than 10 countries and generated revenue of €525 million in 2021.
    Cegedim SA is listed in Paris (EURONEXT: CGM).
    To learn more, please visit: www.cegedim.fr
    And follow Cegedim on Twitter @CegedimGroup, LinkedIn and Facebook.
    Aude BALLEYDIER
    Cegedim
    Media Relations
    and Communications Manager
    Tel.: +33 (0)1 49 09 68 81
    aude.balleydier@cegedim.fr    		Jan Eryk UMIASTOWSKI
    Cegedim
    Chief Investment and
    Investor Relations Officer
    Tel.: +33 (0)1 49 09 33 36
    janeryk.umiastowski@cegedim.com    		Céline PARDO
    .becoming
    Media Relations

     

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

     

    Annexes

    Revenue comparison, sector vs. division

      2021
    in millions of euros Health insurance, HR and e-servicesHealthcare
    professionals    		Corporate
    and others    		Total
    Software & services 141.4150.6-292.0
    Flow 84.2--84.2
    Data & Marketing 98.4--98.4
    BPO 47.3--47.3
    Corporate and others --2.72.7
    Total 371.4150.62.7524.7

    Recurring operating income(1) comparison, sector vs. division

      2021
    in millions of euros Health insurance, HR and e-servicesHealthcare
    professionals    		Corporate
    and others    		Total
    Software & services 16.2-3.3-12.8
    Flow 11.1--11.1
    Data & Marketing 14.6--14.6
    BPO 2.5--2.5
    Corporate and others --(1.1)(1.1)
    Total 44.4-3.3(1.1)39.9

    (1) Alternative performance indicator


    Consolidated financial statements at December 31, 2021

    • Assets at December 31, 2021
    In thousands of eurosDecember 31, 2021December 31, 2020
    Goodwill  187,106 186,036
    Development costs8,436 3,873
    Other intangible fixed assets171,489 159,144
    Intangible assets179,925 163,017
    Property544 544
    Buildings2,088 2,319
    Other property, plant, and equipment35,033 31,835
    Advances and construction work in progress   0
    Right-of-use assets84,00275,607
    Tangible fixed assets121,667 110,305
    Equity investments314 1,182
    Loans15,223 14,618
    Other long-term investments5,771 4,730
    Long-term investments – excluding equity shares in equity method companies21,308 20,530
    Equity shares in equity method companies21,266 21,479
    Deferred tax assets33,506 33,202
    Long-term financial instruments0 44
    Prepaid expenses: long-term portion108 249
    Non-current assets564,886 534,862
    Goods4,503 3814
    Advances and deposits received on orders140 501
    Accounts receivables: short-term portion136,343 134,650
    Other receivables: short-term portion48,743 189,683
    Current tax credits2,123 4,007
    Short-term financial instruments0 1
    Cash equivalents0 -
    Cash24,160 24,734
    Prepaid expenses: short-term portion16,688 13,103
    Current assets232,700 370,493
    TOTAL Assets797,586 905,355

    • Liabilities and equity at December 31, 2021
    In thousands of eurosDecember 31, 2021December 31, 2020
    Share capital 13,33713,337
    Consolidated retained earnings200,717188,524
    Group exchange gains/losses(8,214)(5,040)
    Group earnings26,22410,834
    Shareholders’ equity, Group share232,064207,655
    Minority interest 323 247
    Shareholders’ equity232,387207,902
    Financial liabilities186,574186,278
    Current lease liabilities70,29762,331
    Short-term financial instruments- 66
    Deferred tax liabilities8,2727,599
    Retirement benefit commitments34,06935,281
    Provisions2,2552,575
    Non-current liabilities301,467294,130
    Financial liabilities2,5602,606
    Current lease liabilities16,07215,243
    Short-term financial instruments -1
    Trade payables and related accounts48,24543,214
    Current tax liabilities1,483501
    Tax and social security liabilities 101,003108,217
    Provisions2,0653,045
    Other liabilities92,304230,495
    Current liabilities263,732403,323
    TOTAL Liabilities797,586905,355
    • Income statement as of December 31, 2021
    In millions of eurosDecember 31, 2021December 31, 2020
    Revenue 524,709496,939
    Purchases used(26,703)(25,491)
    External expenses(107,414)(100,491)
    Taxes(6,782)(7,904)
    Employee costs(278,841)(256,219)
    Impairment on accounts receivable and other receivables and on contract assets(158)(1,871)
    Allowances to and reversals of provisions (4,102)(3,442)
    Other operating income and expenses1,161(65)
    Share of income of equity method companies2,8282,736
    EBITDA(1)104,698104,192
    Depreciation expenses other than right-of-use assets (48,348)(46,519)
    Depreciation expenses of right-of-use assets(16,453)(15,939)
    Recurring operating income(1)39,89741,734
    Impairment of acquisition goodwill00
    Non-recurring operating income and expenses3,789 (19,914)
    Other non-recurring operating income and expenses(1)3,789 (19,914)
    Operating income43,686 21,820
    Income from cash and cash equivalents 90 75
    Cost of gross financial debt(8,357)(8,547)
    Other financial income and expenses (2,104)(171)
    Financial result(10,371)(8,643)
    Income taxes(7,128)(4,973)
    Deferred tax1,292 3,007
    Tax(5,836)(1,966)
    Share of profit (loss) for the period of equity method companies (1,179)(295)
    Consolidated net profit26,300 10,916
    Group share 26,224 10,835
    Income from equity-accounted affiliates 7681
    Average number of shares excluding treasury stock 13,782,43613,824,493
    Recurring earnings per share (in euros)1.81.2
    Earnings per share (in euros)1.90.8

    (1) Alternative performance indicator

    • Cash flow statement as of December 31, 2021
    In thousands of eurosDecember 31, 2021December 31, 2020
    Consolidated net profit26,300 10,916
    Share of earnings from equity method companies (1,649)(2,441)
    Depreciation and amortization expenses and provisions 64,438 77,481
    Capital gains or losses on disposals of operations(141)1,641
    Cash flow after cost of net financial debt and taxes88,948 87,597
    Cost of net financial debt10,370 8,642
    Tax expenses5,837 1,966
    Operating cash flow before cost of net financial debt and taxes 105,155 98,205
    Tax paid(4,119)(6,337)
    Change in working capital requirements for operations(5,057)18,513
    Cash flow generated from operating activities after tax paid and change in working capital requirements 95,979 110,381
    Acquisitions of intangible assets(50,748)(54,607)
    Acquisitions of tangible assets(14,015)(19,920)
    Acquisitions of long-term investments(3,199)(980)
    Disposals of tangible and intangible assets668 11,024
    Disposals of long-term investments2,040 40
    Change in deposits received or paid(674)(780)
    Impact of changes in consolidation scope(5,128)(7,124)
    Dividends received ex. group950 2,032
    Net cash flow used in investing activities (70,106)(70,315)
    Dividends paid to minority shareholders of consolidated cos.(1)(1)
    Debt issuance0 0
    Debt repayments(1,156)(20,225)
    Employee profit sharing 431 131
    Repayment of lease liabilities (16,808)(16,119)
    Interest paid on loans(4,995)(5,280)
    Other financial income received369 1,030
    Other financial expenses paid (4,576)(3,674)
    Net cash flow used in financing activities (26,736)(44,138)
    Change in net cash excluding currency impact (863)(4,073)
    Impact of changes in foreign currency exchange rates 289 (252)
    Change in net cash (574)(4,325)
    Opening cash24,734 29,059
    Closing cash24.15924,734

    Attachment


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