Cegedim (CGM) Q4 2023 earnings summary

Executive summary

• FY2023 revenue rose 10.9% reported and 10.8% like for like to €616.0M; EBITDA increased 13.1% to €108.8M and recurring operating income rose 23.4% to €31.7M.

• Consolidated net loss was €7.9M; net loss attributable to owners was €7.4M, versus €12.1M net profit and €13.6M attributable profit, respectively, in 2022.

Financial highlights

• EBITDA margin improved to 17.7% from 17.3%, and recurring operating margin rose to 5.1% from 4.6%.

• Operating income fell 24.6% to €20.0M, including €11.7M of non-recurring expenses versus €0.8M of income in 2022; UK asset write-downs accounted for nearly €9M.

• Net financial expense widened to €11.9M from €8.8M, mainly due to higher floating-rate borrowing costs; tax expense rose to €14.8M, including a non-cash €12.3M deferred-tax adjustment.

• Operating cash flow after tax and working-capital changes was €97.9M, up 13.2%; net cash change was -€8.4M versus +€32.4M in 2022.

Outlook and guidance

• FY2024 like-for-like revenue growth target is 5%–8%; recurring operating income is expected to increase on a trajectory similar to 2023.

• Targets are not forecasts and may be revised if geopolitical, macroeconomic or monetary risks worsen significantly.