• Cegedim : Growth picked up speed in Q2 2022

    Source: Nasdaq GlobeNewswire / 28 Jul 2022 10:45:00   America/Chicago

     

    PRESS RELEASE

    Quarterly financial information as of June 30, 2022
    IFRS - Regulated information - Not audited

    Cegedim: Growth picked up speed in the second quarter of 2022

    • Q2 2022 revenues grew 7.5%
    • All operating divisions contributed to growth
    • H1 2022 revenues grew 6.5%
    • Cegedim Santé: €65 million reserved capital increase completed
    • H1 recurring operating income(3) expected to be down

    Boulogne-Billancourt, France, July 28, 2022, after the market close

    Consolidated second quarter revenues rose 7.5% as reported and 7.0% like for like(1) compared with the same period in 2021.

    First half revenues rose 6.5% as reported and 6.1% like for like(1) compared with the same period in 2021. This shows that the second quarter was particularly dynamic. Laurent Labrune, Deputy Managing Director of Cegedim, said:

    “Growth picked up speed in the second quarter and all operating divisions contributed, which demonstrates that our strategy is sound.
    A lot happened this past quarter. We acquired Mesdocteurs, a leader in telehealth and a pioneer in 24/7 telemedicine; Laponi, an innovative solution for managing absenteeism in real time; and Sedia, tracking software for medical instrumentation since 1985. We launched a groundbreaking strategic industrial partnership between Cegedim Santé and three social protection companies whose services cover 25 million beneficiaries in France and carried out a €65 million reserved capital increase for Cegedim Santé.
    We are entering the second half of the year with confidence as we look to take full advantage of trends in the markets where we are present, and we continue to invest in innovation and our sales force.”

    Revenue

      First half Change H1 2022 / 2021
    in millions of euros 20222021ReportedLike for like(1)(2)
    Software & services 145.6140.2+3.8%+3.0%
    Flow 45.241.7+8.3%+8.2%
    Data & Marketing 50.044.8+11.8%+11.8%
    BPO 25.422.9+10.8%+10.8%
    Corporate and others 1.31.5(11.2)%(11.2)%
    Cegedim 267.6251.2+6.5%+6.1%

    --------------------
    (1)   At constant scope and exchange rates.
    (2)   The positive currency impact of 0.2% was mainly due to the pound sterling. The positive scope effect of 0.2% was attributable to the first-time consolidation at June 30, 2021, of Kobus Tech and at June 30, 2022, of Mesdocteurs.
    (3)   See 2021 Universal Registration Document Chapter 4 “Consolidated Financial Statements” section 4.6 Note 2 on Alternative performance indicators.

    Analysis of business trends by division

    • Software & Services

    H1 2022 division revenues came to €145.6 million, up 3.0% like for like(1) compared with the same period in 2021.

    All of the division’s activities turned in solid performances with the exception of the still-recovering healthcare professional computerization business in the UK.

    • Flow

    H1 2022 division revenues came to €45.2 million, up 8.2% like for like(1) compared with the same period in 2021.

    The process digitalization and digital data flow business experienced strong growth in France. The clear recovery seen in Germany and the UK in the first quarter continued in the second. The healthcare flow business related to healthcare reimbursements in France also grew over the first half.

    • Data & Marketing

    H1 2022 division revenues came to €50.0 million, up 11.8% like for like(1) compared with the same period in 2021.

    Data and digital communication solutions for French pharmacies still have good momentum.

    • BPO

    H1 2022 division revenues came to €25.4 million, up 10.8% like for like(1) compared with the same period in 2021.

    The business of providing services for insurance companies and mutual insurance providers was stable in the first quarter and posted double-digit growth in the second quarter. Growth in BPO services for HR departments--already in double digits in Q1--ramped up in the second quarter.

    • Corporate and others

    H1 2022 division revenues came to €1.3 million, down 11.2% like for like(1) compared with the same period in 2021.

    Highlights

    Apart from the items cited below, to the best of the company’s knowledge. there were no events or changes during Q2 2022 that would materially alter the Group’s financial situation.

    • War in Ukraine

    The Group does not do business in Russia or Ukraine and has no assets exposed to those countries.

    • Groundbreaking strategic industrial partnership between Cegedim and Malakoff Humanis, Groupe VYV, and PRO BTP

    On May 16, 2022, Cegedim Group and social protection companies Malakoff Humanis, Groupe VYV, and PRO BTP Groupe announced that they had finalized the strategic partnership they began negotiating on March 1, 2022.

    This strategic partnership will advance the goals laid out by the French government in its Ma Santé 2022 plan. It will draw on the recognized expertise of Cegedim, Malakoff Humanis, Groupe VYV, and PRO BTP, all of whom share the goal of improving patients’ access to care and making the course of care as smooth as possible.

    To this end, Malakoff Humanis, Groupe VYV, and PRO BTP Groupe—who together represent 25 million beneficiaries in France—subscribed a reserved capital increase of €65 million on May 25, 2022, and now own 8% of the shares of Cegedim Santé. The deal values Cegedim Santé at €360.9 million. As part of the deal, Cegedim Santé acquired Groupe VYV subsidiary MesDocteurs, a telehealth solution pioneer and one of the originators of 24/7 telemedicine.

    ------------------
    (1)   At constant scope and exchange rates.


    • Acquisition of Laponi

    On June 21, 2022, Cegedim SRH acquired Laponi, an innovative solution for managing absenteeism in real time. Laponi, a French startup founded in 2016, has successfully developed a digital SaaS platform that lets companies ask internal and external employees to cover shifts when someone is absent. The Laponi solution is easy to use and alerts employees in real time about tasks that need to be done. Employees are then free to choose tasks while boosting their income. The acquisition enhances Cegedim SRH’s TeamsRH HRIS platform.

    As a standalone component in Cegedim SRH’s portfolio, Laponi will be able to help solve absenteeism issues at the company’s 400 clients, and its solution will benefit from Cegedim SRH’s technical and financial resources as well as its sales force.

    Laponi is profitable. It began contributing to the Group’s consolidation scope on July 1, 2022.

    Significant transactions and events post June 30, 2022

    Apart from the item cited below, to the best of the company’s knowledge, there were no post-closing events or changes after June 30, 2022, that would materially alter the Group’s financial situation.

    • Acquisition of Sedia

    On July 19, 2022, Cegedim e-business rounded out its Hospitalis offering by acquiring Sedia.

    Sedia has specialized in software that tracks medical instrumentation usage since 1985. Thanks to this acquisition, Hospitalis now offers a medical device and implantable medical device (MD/IMD) tracking service. The service is responsible for 900,000 scans annually and has tracked more than 8 million IMDs. The newest component in the Hospitalis range, Sedia offers health, financial, and logistical tracking of MD/IMDs that are on consignment or have been lent or purchased outright.

    Sedia is profitable. It will begin contributing to the Group’s consolidation scope on August 1, 2022.

    Outlook

    Based on H1 2022 revenues up 6.1% like for like(1), and despite the public health, economic, geopolitical, and monetary uncertainty facing the world, the Group is confident it can grow revenues by 5% like for like(1) in 2022.

    There is a delay of several months between wage increases and the annual increase in product prices resulting from indexation, for example products linked to the Syntec index in France.

    The negative impact of that delay, combined with continued investment in R&D and the sales force, will be a headwind for H1 recurring operating income(2).

    WEBCAST ON JULY 28, 2022, AT 6:15 PM (PARIS TIME)
    The webcast is available at: www.cegedim.fr/webcast
     
    The H1 2022 revenues presentation is available:

     
     

    2022 financial calendar

    2022September 20 after the close

    October 27 after the close    		First-half 2022 results

    Third-quarter 2022 revenues

    __________
    (1)   At constant scope and exchange rates.
    (2)   See 2021 Universal Registration Document Chapter 4 “Consolidated Financial Statements” section 4.6 Note 2 on Alternative performance indicators.

    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 July 28, 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 2021 Universal Registration Document filled with the AMF on April 1st, 2022, under number D.22-0232.

     
     

    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

    Breakdown of revenue by quarter and division

    • Year 2022
    in € thousands Q1Q2Q3Q4Total
    Software & services 71.274.4  145.6 
    Flow 22.622.6  45.2 
    Data & marketing 22.527.6  50.0 
    BPO 12.313.1  25.4 
    Corporate and others 0.70.7  1.3 
    Group revenue 129.2138.3  267.6 
    • Year 2021
    in € thousands Q1Q2Q3Q4Total
    Software & services 68.871.471.380.4292.0 
    Flow 21.020.719.822.784.2 
    Data & marketing 19.924.821.831.998.4 
    BPO 11.711.211.413.047.3 
    Corporate and others 1.00.50.50.72.7 
    Group revenue 122.5128.7124.8148.7524.7 

    Breakdown of revenue by geographic zone, currency and division at June 30, 2022

    as a % of consolidated revenues

         		 Geographic zone Currency
     FranceEMEA
    ex. France    		Americas EuroGBPOthers
    Software & services 83.5%16.4%+0.1% 86.5%11.8%1.7%
    Flow 92.6%+7.4%0.0% 95.6%4.4%0.0%
    Data & marketing 97.3%2.4%0.0% 97.6%0.0%2.4%
    BPO 100.0%0.0%0.0% 100.0%0.0%0.0%
    Corporate and others 99.7%0.3%0.0% 100.0%0.0%0.0%
    Cegedim 89.3%10.6%0.1% 91.5%7.2%1.4%

    Q2 2022 revenues by division

      Second quarter Change Q2 2022 / 2021
    in millions of euros 20222021ReportedLike for like(1)
    Software & services 74.471.4+4.1%+3.3%
    Flow 22.620.7+9.2%+9.1%
    Data & Marketing 27.624.8+11.0%+11.0%
    BPO 13.111.2+16.9%+16.9%
    Corporate and others 0.70.5+36.6%+36.6%
    Cegedim 138.3128.7+7,5%+7.0%

    (1)   At constant scope and exchange rates. The positive scope effect of 0.3% was attributable to the first-time consolidation at June 30, 2021, of Kobus Tech, and at June 30, 2022, of Mesdocteurs. The positive currency impact of 0.1% was due to the pound sterling.

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