- Q1 sales of €215 million under IFRS (up +25% vs. Q1 2024), and €233 million on an adjusted basis1, up +31%
- Record level of orders in the first quarter of €532 million (up +94% vs Q1 2024) driven by strong momentum in the United States
- VAS2 sales of €33 million, up +71% vs Q1 2024
- Full-year outlook confirmed for adjusted sales of €1.4 billion (+40% vs 2024) and improved profitability
The following financial figures are presented under IFRS standards, as well as in adjusted terms before IFRS 15 adjustments, with no cash impact, related to the Walmart U.S. contract which began in Q4 2023. Details of these adjustments are provided at the end of this press release.
| In €m | IFRS Sales | Adjustments1 due to Walmart US contract | Adjusted Sales1 |
| Q1 2025 | 215.2 | -17.6 | 232.8 |
| Q1 2024 | 171.9 | -5.8 | 177.7 |
| Change (in %) | +25.2% | N/A | +31.0% |
Unaudited figures
Commenting on the figures, Thierry Gadou, Chairman and CEO of VusionGroup, stated:
"The first quarter went as planned with +31% growth in adjusted revenue, above our guidance, and strong growth in order intake (+94%). VAS revenue is also up sharply, both for recurring and non-recurring revenues.
In this first quarter, growth was driven by the United States, where in particular the rollout of Walmart is continuing according to plan. The fluctuating tariff situation was of course discussed with our US customers, ultimately leading to unchanged or potentially accelerated rollout plans due to the strategic importance of digitizing stores in the context of increasing price volatility. Our forecasts for the year are therefore maintained.
The business in Europe is not yet benefiting in Q1 from recently signed contracts due to normal manufacturing lead times, but deliveries will accelerate from the second quarter.
With excellent momentum confirmed in the 1st quarter, and an acceleration expected in the coming months, we confirm our target of 40% growth to €1.4 billion in adjusted annual revenue. More than ever in today's environment, our solutions are providing retailers with efficiency and resilience and enabling them to increase the return on capital employed of their most important asset: their stores. The acceleration of our growth reflects the perfect product market fit of our technologies to the present challenges of our customers, despite the current tensions on global trade."
Sales
| In €m and in adjusted1 figures | EMEA | Americas & Asia-Pacific | Total |
| Q1 2025 | 90.0 | 142.8 | 232.8 |
| Q1 2024 | 106.2 | 71.5 | 177.7 |
| Change (in %) | -15.3% | +99.7% | +31.0% |
| Order entries in €m | 2025 | 2024 | % |
| Q1 | 532 | 274 | +94% |
| Rolling 12-month | 1 886 | 1 003 | +88% |
Q1 sales growth above guidance with record order entries
The Group's IFRS revenue reached €215 million in the 1st quarter, and €233 million on an adjusted basis1, up +31% compared to the 1st quarter of 2024, and above the guidance communicated during the presentation of the 2024 annual results.
In terms of geography, growth was driven by the Americas & Asia-Pacific region, particularly by the performance in North America. The breakdown of revenue in the first quarter of the year was:
- 58% for Americas and Asia-Pacific under IFRS or €125 million, and 61% on an adjusted basis, or €143 million, up close to +100% compared to the first quarter of 2024. This performance was driven by the rapid expansion in the United States, consolidating its position acquired in 2024 as the Group's largest market. Growth is expected to continue at a sustained pace in the coming quarters. This excellent momentum is notably due to the accelerated deployment at Walmart.
- 42% for EMEA in IFRS terms and 39% on an adjusted basis, or €90 million, down -15% compared to the first quarter of 2024. Europe is not yet benefiting from the contracts signed at the end of the year and more recently, but this distribution of deliveries during the year, which is lower in the first half, does not call into question the Group's annual growth prospects in the region. The Group expects full-year revenue growth in EMEA thanks to a sharp rebound in deliveries in the second half of the year.
Global order entries increased by +94% to €532 million in the first three months of the year. The level of orders reached €1,886 million at the end of March 2025 on a 12-month rolling basis. This record figure is explained by some of Walmart's new orders announced at the end of the year. The Group expects this good momentum to continue for the full year, driven by the signing of new contracts in both the United States and Europe.
VAS2 Sales
Revenue from software, services and non-ESL solutions reached €33.3 million in the first three months of the year, up sharply (+71% compared to the first three months of 2024).
Recurring revenues3 reached €17.2 million, up +38% compared to the first quarter of 2024, and represented around 52% of the total VAS revenues.
Our cloud installed base grew rapidly during the first quarter of the year to reach approximately 26,000 stores and 188 million labels. This dynamic will accelerate in the coming quarters. As a reminder, the cloud installed base was around 19,000 stores and 94 million labels at the end of March 2024.
Outlook confirmed for 2025
With an order book at an all-time high and despite a fluctuating tariff environment, VusionGroup has a strong level of visibility and confidence.
The Group confirms the growth and profitability improvement objectives announced at the time of the publication of its 2024 annual results on February 26, i.e. growth of around +40% compared to 2024.
This annual revenue target of €1.4 billion on an adjusted1 basis should be split between around €600 million in the first half and €800 million in the second.
The Group also sets itself the objective of achieving annual VAS revenue growth of around +80% compared to 2024, i.e. a growth rate twice that of the Group. VAS should be driven by a solid performance in both recurring and non-recurring VAS.
Finally, the Group also expects profitability improvement to continue, with adjusted[4] EBITDA margin growing by 100 to 200 bps in 2025. This increase in profitability should be accompanied by positive free cash flow generation.
VusionGroup remains confident in its ability to achieve the objectives of its Vusion '27 strategic plan.
Note on the IFRS Restatements related to the new Walmart contract
Two IFRS restatements related to the new Walmart contract impact 2024 financial disclosures:
- On June 2, 2023, at their Annual General Meeting, the Group's shareholders approved a grant to Walmart of 1,761,200 of stock warrants on the Group's shares. According to IFRS standards, the fair value of these warrants should be calculated. On June 2, 2023, the fair value of the warrants was established at €163m. A contract asset and a financial debt were thus recorded in the consolidated accounts for this amount.
The contract asset, which is a fixed amount, is amortized in proportion to the forecast revenue generated by Walmart on the length of time that management estimated necessary for Walmart to spend $3 billion with the Group. The reduced revenue impact is customary as the warrants will only have a potential dilutive effect, which was modeled and communicated during the allocation of the warrants in early June 2023. This does not impact the actual sales invoiced to Walmart. This restatement has no impact on the Group's cash flow. It impacts revenue and all of the Group's income statement lines, in the same proportion. This negative impact to the Group's IFRS accounts will continue until Walmart has spent $3 billion with the Group, in direct proportion to the sales generated by this contract.
The financial debt is subject to revaluation at each closing, depending on the number of exercisable warrants and the market price of VusionGroup shares. Any change is recorded as financial income in the Group's consolidated accounts. VusionGroup will continue to communicate at each closing the impact on revenue and net income of this IFRS restatement. - The impact of future price reductions indexed to the volumes agreed upon with Walmart from the first deliveries of electronic shelf labels (ESLs): The cost of the Group's hardware solutions is a function of the volume manufactured. A significant increase in volume might thus lead to lower cost. Therefore, it has been agreed with this customer that they will be granted price reductions in relation to the future sales volume to which they contribute. The IFRS standard (IFRS 15) requires prices to be averaged over the life of the contract. The application of this restatement in 2023 impacts reported revenue (IFRS) compared to the revenue invoiced, even though price reductions will only be granted if and when volumes will have reached certain thresholds. The application of this standard has a negative impact on revenue and all income statement lines, down to net profit. Finally, it is important to note that cost reductions have already been negotiated with suppliers to guarantee at least the same level of margin on this contract in 2025.
Conference with Management on April 23rd at 6pm CET (Paris time)
Click on this link to access the live webcast.
The slideshow as well as a replay of the event will be available on VusionGroup's investor website: https://investor.vusion.com
Financial Calendrier 2025
- June 17, 2025: Annual General Shareholders' Meeting
- July 30, 2025 (after market): H1 2025 Sales
- September 15, 2025 (after market): H1 2025 Results
- October 22, 2025 (after market): Q3 2025 Sales
Disclaimer
This press release contains unaudited financial information. In addition, this press release includes performance indicators restated for the IFRS accounting impact of the Walmart US contract. The Group presents these restated performance indicators to allow investors to better understand the evolution of its performance. These indicators and restatements should only be used as analytical instruments and should not be considered as a substitute for the indicators defined by IFRS accounting standards. They do not constitute substitutes for the accounts approved by the general meeting of shareholders. They are not necessarily representative of the Group's future performance.
This press release contains forward-looking information and statements. These forward-looking statements include financial projections, estimates and statements regarding plans, objectives and expectations regarding future operations, products or services or future performance. No assurance can be given that these forward-looking elements will materialize. Readers are cautioned that such forward-looking information and statements are subject to numerous risks or uncertainties, difficult to predict and generally beyond the control of VusionGroup that may cause expected results and developments to differ materially from those expressed, implied or projected in such forward-looking statements and information.
These risks include, in particular, those developed or identified in VusionGroup's universal registration document filed with the Autorité des Marchés Financiers (AMF) and available on the websites of VusionGroup (www.vusion.com) and the Autorité des marchés financiers (www.amf-france.org). Readers are cautioned that the occurrence of some or all of these risks is likely to have a material adverse effect on VusionGroup. VusionGroup is under no obligation and does not undertake any obligation to publicly release any changes or updates to any forward-looking information and statements.
This document does not constitute an offer to sell or the solicitation of an offer to acquire any securities of VusionGroup in any jurisdiction.
About VusionGroup
VusionGroup is the global leader in providing digitalization solutions for commerce, serving over 350 large retailer groups around the world in Europe, Asia and North America.
The Group develops technologies that create a positive impact on society by enabling sustainable and human-centered commerce. By leveraging its IoT & Data technologies, VusionGroup empowers retailers to re-imagine their physical stores into efficient, intelligent, connected, and data-driven assets. The Group unlocks higher economic performance, facilitates seamless collaboration across the value chain, enhances the shopping experience, creates better jobs, cultivates healthier communities, and significantly reduces waste and carbon emissions.
VusionGroup consist of six families of solutions which bring the full potential of IoT, Cloud, Data, and artificial intelligence (AI) technologies to the service of the modernization of commerce: SESimagotag (ESL & Digital Shelf Systems), VusionCloud, Captana (computer vision and artificial intelligence platform), Memory (data analytics), Engage (retail media and in-store advertising), and PDidigital (logistics and industrial solutions).
VusionGroup supports the United Nations' Global Compact initiative and has received in 2023 the Platinum Sustainability Rating from EcoVadis, the world's reference of business sustainability ratings.
VusionGroup is listed in compartment A of Euronext Paris and is a member of the SBF120 Index.
Ticker: VU - ISIN code: FR0010282822
www.vusion.com
Investor Relations: Olivier Gernandt / +33 (0)6 85 07 86 81 / olivier.gernandt@vusion.com
Press contact: vusiongroup@publicisconsultants.com
1 Adjusted sales incorporate IFRS standards before adjusting for certain non-cash IFRS 15 adjustments related to the Walmart US contract, which began in Q4 2023. These adjustments only impact the Americas & Asia-Pacific region. Please see the detailed explanatory note at the end of this press release.
2 VAS: Software, services and non-ESL (Electronic Shelf Labels) solutions
2 VAS: Software, services and non-ESL solutions
3 "Recurring VAS" revenue includes revenue generated by subscriptions to VusionCloud and its SaaS computer vision (Captana and Belive) and data analytics (Markethub and Memory) solutions, as well as contracts for recurring services.
4 Data adjusted for the impact of IRFS restatements on the Walmart US contract.
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