Cegedim (CGM) H1 2024 earnings summary

Executive summary

• Revenue for H1 2024 reached €319.0 million, up 6.0% year-over-year, with like-for-like growth of 4.6%, driven by the integration of Visiodent and growth in core activities.

• EBITDA increased by 6.9% to €52.2 million, with margin improving to 16.4% from 16.2% year-over-year.

• Recurring operating income declined 3.4% to €10.3 million, mainly due to higher R&D amortization.

• Net profit attributable to the Group improved to €0.6 million, a significant turnaround from a loss in H1 2023.

• Headcount rose 4.6% to 6,769 employees.

Financial highlights

• Net financial debt (excluding IFRS 16) increased to €213.9 million, reflecting the Visiodent acquisition and increased borrowings.

• Free cash flow from operations was negative at €(23.1) million, with net cash flow from operating activities at €22.2 million.

• Payroll costs rose 5.9% to €173.2 million, in line with increased headcount.

• Operating income dropped to €7.7 million, mainly due to restructuring costs and higher R&D amortization.

• EBITDA margin was 16.4%, up from 16.2% in H1 2023.

Outlook and guidance

• 2024 like-for-like revenue growth is expected in the 5–8% range, with recurring operating income also set to grow.

• H2 is expected to outperform H1, with improved profitability from the Allianz contract and internalization of external costs.

• Guidance may be revised if significant macroeconomic or geopolitical risks materialize.

• No Ségur de la Santé subsidies expected in 2024; next wave for paramedical professionals anticipated in 2025.

• EBIT for 2024 is expected to be below the €41 million achieved in 2021, but a significant improvement over 2023 is anticipated.