Cegedim: Steady revenue growth in 2021

Thursday, 27. January 2022 17:45

 
 

PRESS RELEASE

Quarterly financial information as of December 31, 2021
IFRS - Regulated information - Not audited

Cegedim: Steady revenue growth in 2021

  • Like-for-like (1) revenue growth of 5.0% to €525m in 2021
  • 2021 revenues at the top of the Group’s estimated range

Boulogne-Billancourt, France, January 27, 2022, after the market close

Cegedim generated consolidated 4Q 2021 revenues of €148.7 million, an increase of 4.9% as reported and 3.9% like for like (1) compared with the same period in 2020. Over the full year, consolidated revenues of €524.7 million represented year-on-year growth of 5.6% as reported and 5.0% like for like (1).

The Group’s fourth-quarter revenue growth of 4.9% allowed it to achieve full-year revenue of €525 million in 2021 even though the pandemic ramped up late in the year. Owing to successful vaccination campaigns and the discovery of new medicines, we could see a gradual lessening of the public health crisis in 2022. We are confident that we can continue to grow sustainably while strengthening our ESG strategy, notably by following through on investments that respond to the growing need for digitalization in healthcare and business processes.” Laurent LabruneCegedim Deputy Managing Director

Revenue

    12 months Change FY 2021 / 2020
in € millions   2021 2020 Reported Lfl (2)
Software & Services   292.0 277.2 +5.4% +4.4%
Flow   84.2 79.4 +6.1% +6.0%
Data & Marketing   98.4 87.8 +12.1% +12.1%
BPO   47.3 48.9 (3.3)% (3.3)%
Corporate and others   2.7 3.6 (24.8)% (24.8)%
Cegedim   524.7 496.9 +5.6% +5.0%

The Audit Committee, the ESG Committee and the Board of Directors met on January 27, 2022.

__________
(1)   At constant scope and exchange rates.
(2)   At constant scope and exchange rates. The positive currency impact of 0.3% was mainly due to the pound sterling. The positive scope effect of 0.3% was attributable to the first-time consolidation of new acquisitions Médimust and Kobus Tech.

Analysis of business trends by division

  • Software & Services

Over the full year 2021, revenues rose 4.4% like for like(1) compared with 2020 to €292.0 million, despite a challenging comparison in the fourth quarter.

Revenues got a boost from stronger growth in computerization activities for health insurers—bolstered by the resumption of project-based business, among other factors—and from an excellent performance in HR management outsourcing activities. Growth was also driven by trading operations in the fourth quarter.

Commercial trends at Cegedim Santé are robust despite the Covid flare-up late in the year, which curtailed sales efforts targeting healthcare professionals. Maiia, which specializes in appointment scheduling—particularly for vaccination appointments—and teleconsultation, doubled its revenues in 2021 compared with 2020, as predicted.

  • Flow

2021 revenues rose 6.0% like for like (1) compared with 2020 to €84.2 million.

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.

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. The negative impact was chiefly evident in the first and fourth quarters.

  • Data & Marketing

2021 revenues rose 12.1% like for like (1) compared with 2020 to €98.4 million.

Data activities experienced strong growth against the backdrop of the pandemic and had their strongest quarter of the year in Q4 despite a demanding comparison.

Digital displays in pharmacies experienced substantial growth over the year but ran into a challenging comparison in Q4, as the business had rebounded strongly in the fourth quarter of 2020. Futuramedia, a digital communication solutions expert for pharmacies, continues to roll out its offering in the UK.

  • BPO

2021 division revenues came to €47.3 million, down 3.3% like for like (1) compared with the same period in 2020. The fourth quarter benefited from an undemanding comparison.

This business, which largely involves managing services on behalf of insurance companies and mutual health insurers, was hurt by a decrease in unit prices now that the implementation phase is complete, and by less so-called overflow business. On the other hand, the division got a boost in Q4 from strong demand for BPO services from HR departments.

  • Corporate and others

2021 division revenues came to €2.7 million, down 24.8% like for like (1) compared with the same period in 2020.

Highlights

To the best of the company’s knowledge, apart from the item mentioned below there were no events or changes during the fourth quarter of 2021 that would materially alter the Group’s financial situation.

  • 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.

Significant transactions and events post December 31, 2021

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

Outlook

With respect to 2021, trading operations carried out in the fourth quarter by the Software and services division are very likely to negatively affect recurring operating income (2) growth.

Based on currently available information and 2021 estimates, the Group expects 2022 revenue growth on a par with 2021 growth.

The Group does not expect to make any significant acquisitions in 2022. And lastly, the group does not provide earnings estimates or forecasts.

__________
(1)   At constant scope and exchange rates.
(2)   See Universal Registration Document Chapter 4 “Consolidated Financial Statements” section 4.6 Note 2 on Alternative performance indicators
2022 Financial calendar

WEBCAST ON JANUARY 27, 2022 AT 6:15 PM (PARIS TIME)
The webcast is available at: www.cegedim.com/webcast
 
The FY 2021 revenues presentation is available:
  • On the website: https://www.cegedim.com/finance/documentation/Pages/presentations.aspx


2022 March 24, after the close

April 28, after the close

June 17 at 9:30 pm CET

July 28 after the close

September 20 after the close
FY 2021 results

1Q 2022 revenues

Shareholders’ meeting

1H 2022 revenues

1H 2022 earnings


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. It was sent to Cegedim’s authorized distributor on January 27, 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 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 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
Tél. : +33 (0)1 49 09 68 81
aude.balleydier@cegedim.fr

Jan Eryk UMIASTOWSKI
Cegedim
Chief Investment and
Investor Relations Officer
Tél. : +33 (0)1 49 09 33 36
janeryk.umiastowski@cegedim.com

Céline PARDO
suPR
Media Relations
Tél. :        +33 (0)6 52 08 13 66
cegedim@becoming-group.com
 

Annexes

Breakdown of revenue by quarter and division

  • Year 2021
in € thousands   1Q 2Q 3Q 4Q Total
Software & services   68.8 71.4 71.3 80.4 292.0  
Flow   21.0 20.7 19.8 22.7 84.2  
Data & Marketing   19.9 24.8 21.8 31.9 98.4  
BPO   11.7 11.2 11.4 13.0 47.3  
Corporate and others   1.0 0.5 0.5 0.7 2.7  
Consolidated Group revenue   122.5 128.7 124.8 148.7 524.7  
  • Year 2020
in € thousands   1Q 2Q 3Q 4Q Total
Software & services   69.1 64.4 68.0 75.5 277.2  
Flow   20.4 18.0 19.0 22.0 79.4  
Data & Marketing   18.9 19.6 19.0 30.3 87.8  
BPO   12.3 11.6 12.0 13.0 48.9  
Corporate and others   0.9 0.9 1.0 1.0 3.6  
Consolidated Group revenue   121.5 114.7 118.9 141.8 496.9  

Breakdown of revenue by geographic zone and division as of December 31, 2021

as a % of consolidated revenues   France EMEA ex. France Americas
Software & services   81.5% 18.4% 0.1%
Flow   93.5% 6.5% 0.0%
Data & Marketing   97.4% 2.6% 0.0%
BPO   100.0% 0.0% 0.0%
Corporate and others   99.4% 0.6% 0.0%
Cegedim   88.2% 11.7% 0.1%

Breakdown of revenue by currency and division as of December 31, 2021

as a % of consolidated revenues   Euro GBP Others
Software & services   84.5% 13.6% 1.9%
Flow   96.6% 3.4% 0.0%
Data & Marketing   97.4% 0.0% 2.6%
BPO   100.0% 0.0% 0.0%
Corporate and others   100.0% 0.0% 0.0%
Cegedim   90.4% 8.1% 1.6%

FY 2021 Revenue by sector

    12 months
in € millions   2021 2020 LFL change(1) Reported chg.
Health insurance, HR and e-services   371.4 341.8 +8.5% +8.6%
Healthcare professionals   150.6 151.5 (2.1)% (0.6)%
Corporate and others   2.7 3.6 (24.8)% (24.8)%
Cegedim   524.7 496.9 +5.0% +5.6%

(1)   At constant scope and exchange rates.


Sector / division comparison

    FY 2021
in € millions   Health insurance, HR and e-services Healthcare professionals Corporate and others Total
Software & services   141.4 150.6 - 292.0
Flow   84.2 - - 84.2
Data & Marketing   98.4 - - 98.4
BPO   47.3 - - 47.3
Corporate and others   - - 2.7 2.7
Total   371.4 150.6 2.7 524.7

4Q 2021 Revenue by division

    4Q Change 4Q 2021 / 2020
in € millions   2021 2020 Reported LFL(2)
Software & Services   80.4 75.5 +6.6% +4.8%
Flow   22.7 22.0 +3.2% +3.0%
Data & Marketing   31.9 30.3 +5.1% +5.1%
BPO   13.0 13.0 (0.4)% (0.4)%
Corporate and others   0.7 1.0 (27.4)% (27.4)%
Cegedim   148.7 141.8 +4.9% +3.9%

(2)   At constant scope and exchange rates. The positive currency impact of 0.5% was mainly due to the pound sterling. The positive scope effect of 0.4% was attributable to the first-time consolidation of new acquisitions Médimust and Kobus Tech.

 

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