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
| 2024 | 2023 | Change | |||
| (in €m) | (in %) | (in €m) | (in %) | (in %) | |
| Revenue | 654.5 | 100% | 616.0 | 100.0% | +6.3% |
| EBITDA(1) | 123.6 | 18.9% | 108.8 | 17.7% | +13.5% |
| Depreciation and amortization | -84.1 | -12.8% | -77.2 | -12.5% | +9.0% |
| Recurring operating income(1) | 39.5 | 6.0% | 31.7 | 5.1% | +24.7% |
| Other non-recurring operating income and expenses(1) | -28.4 | -4.3% | -11.7 | -1.9% | -143.0% |
| Operating income | 11.1 | 1.7% | 20.0 | 3.2% | -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 euros | Total | Software & Services | Flow | Data & Marketing | BPO | Cloud & Support |
| Revenue | ||||||
| 2023 as reported | 616.0 | 326.6 | 95.9 | 114.9 | 71.5 | 7.1 |
| 2023 reclassified (*) | 616.0 | 302.3 | 93.4 | 114.9 | 71.5 | 33.9 |
| 2024 | 654.5 | 307.8 | 100.3 | 125.9 | 82.7 | 37.8 |
| Change | +6.3% | +1.8% | +7.3% | +9.6% | +15.8% | +11.3% |
| Recurring operating income(3) | ||||||
| 2023 as reported | 31.7 | 4.2 | 12.1 | 15.9 | 4.0 | -4.5 |
| 2023 reclassified (*) | 31.7 | 2.3 | 11.2 | 15.9 | 4.1 | -1.8 |
| 2024 | 39.5 | 5.1 | 12.5 | 16.5 | 7.2 | -1.9 |
| Change | +24.7% | +126.7% | +11.8% | +3.5% | +77.2% | -5.0% |
| Recurring operating margin | ||||||
| 2023 as reported | 5.1% | 1.3% | 12.6% | 13.9% | 5.5% | -62.9% |
| 2023 reclassified (*) | 5.1% | 0.8% | 11.9% | 13.9% | 5.7% | -5.2% |
| 2024 | 6.0% | 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 & Services | Change 2024/2023 reclassified | ||||
| in millions of euros | 2024 | 2023 reclassified (*) | 2023 as reported | ||
| Revenue | 307.8 | 302.3 | 326.6 | +5.5 | +1.8% |
| Cegedim Santé | 80.2 | 76.5 | 76.5 | +3.7 | +4.8% |
| Insurance, HR, Pharmacies, and other services | 176.7 | 173.3 | 197.6 | +3.4 | +2.0% |
| International businesses | 50.9 | 52.5 | 52.5 | -1.6 | -3.0% |
| Recurring operating income(4) | 5.1 | 2.3 | 4.2 | +2.8 | +126.7% |
| Cegedim Santé | 0.3 | -2.9 | -2.9 | +3.2 | +111.9% |
| Insurance, HR, Pharmacies, and other services | 13.3 | 12.8 | 14.7 | +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.
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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.
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(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
| 2025 | March 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 euros | 12/31/2024 | 12/31/2023 |
| Goodwill arising on acquisitions | 235,747 | 199,787 |
| Development costs | 857 | 1,562 |
| Other intangible assets | 190,555 | 192,616 |
| Intangible assets | 191,412 | 194,178 |
| Land | 594 | 544 |
| Buildings | 1,451 | 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 equipment | 144,733 | 138,582 |
| Equity investments | 0 | 0 |
| Loans | 14,156 | 15,332 |
| Other financial assets | 5,820 | 5,230 |
| Financial assets excluding investments in affiliates | 19,976 | 20,563 |
| Investments in affiliates | 15,354 | 22,065 |
| Deferred tax assets | 16,597 | 19,747 |
| Prepaid expenses: long-term proportion | - | - |
| Non-current assets | 623,819 | 594,922 |
| Goods held for resale | 6,741 | 5,498 |
| Advances and deposits received on orders | 1,296 | 3,703 |
| Trade receivables: short-term portion | 186,003 | 175,199 |
| Other receivables: short-term portion | 66,945 | 59,563 |
| Current tax credits | 29,152 | 16,495 |
| Cash equivalents | 0 | 0 |
| Cash | 49,577 | 46,606 |
| Prepaid expenses: short-term portion | 23,357 | 22,082 |
| Current assets | 363,071 | 329,146 |
| Total assets | 986,890 | 924,068 |
Liabilities and equity at December 31, 2024
| In thousands of euros | 12/31/2024 | 12/31/2023 |
| Share capital | 13,432 | 13,337 |
| Retained earnings | 268,728 | 282,521 |
| Group unrealized exchange gains/losses | -3,105 | -12,275 |
| Group profit (loss) | -14,707 | -7,407 |
| Shareholders' equity, Group share | 264,348 | 276,175 |
| Non-controlling interest | 18,156 | 18,381 |
| Equity | 282,503 | 294,556 |
| Financial liabilities | 223,777 | 188,546 |
| Lease liabilities | 77,639 | 78,761 |
| Deferred tax liabilities | 1,654 | 5,600 |
| Post-employment benefit obligations | 33,024 | 31,007 |
| Provisions | 2,073 | 2,521 |
| Non-current liabilities | 338,167 | 306,435 |
| Financial liabilities | 10,315 | 3,006 |
| Lease liabilities | 14,118 | 14,789 |
| Trade payables and related accounts | 71,784 | 61,734 |
| Current tax liabilities | 279 | 235 |
| Tax and social security liabilities | 128,289 | 121,371 |
| Provisions | 1,502 | 1,730 |
| Other liabilities | 139,932 | 120,212 |
| Current liabilities | 366,220 | 323,077 |
| TOTAL Liabilities and equity | 986,890 | 924,068 |
- Income statement as of December 31, 2024
| In thousands of euros | 12/31/2024 | 12/31/2023 |
| 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 expenses | 1,640 | 431 |
| Share of profit (loss) from affiliates included in operating income | 1,853 | 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 income | 11,087 | 19,983 |
| Income from cash and cash equivalents | 1,650 | 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 stock | 13,706,333 | 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 euros | 12/31/2024 | 12/31/2023 |
| 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 assets | 8,030 | -1,816 |
| Cash flow after cost of net financial debt and taxes | 84,053 | 73,695 |
| Cost of net financial debt | 20,881 | 11,881 |
| Tax expense | 5,780 | 14,845 |
| Cash flow from operating activities before tax and interest | 110,714 | 100,420 |
| Tax paid | -16,216 | -4,233 |
| Change in working capital requirement: requirement | - | - |
| Change in working capital requirement: release | 7,350 | 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 assets | 4,969 | 2,598 |
| Disposals of financial assets | 934 | 805 |
| Change in deposits received or paid | 3,904 | 83 |
| Impact of changes in consolidation scope | -36,878 | -3,371 |
| Dividends received from outside the Group | 5,663 | 1,114 |
| Net cash flow used in investing activities | -111,324 | -75,296 |
| Capital increase | 985 | 0 |
| Dividends paid to minority shareholders of consolidated companies | -105 | -2 |
| Dividends paid to shareholders of the parent company | - | - |
| New borrowings | 180,000 | 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 received | 4,098 | 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 cash | 46,606 | 55,553 |
| Closing cash | 49,574 | 46,606 |
- Financial covenants
| In thousands of euros | 12/31/2024 | Criterion |
| Net debt(1) | 172,489 | |
| EBITDA(2) | 103,551 | |
| Leverage ratio | 1.67 | < 2.5 |
| In thousands of euros | 12/31/2024 | Criterion |
| Interest expense | 10,192 | |
| EBITDA(2) | 103,551 | |
| Interest cover ratio | 10.16 | > 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.
