Cegedim (CGM) Q4 2024 TU earnings summary

Executive summary

• Full-year 2024 revenue reached €654.5 million, up 6.3% reported and 4.7% like-for-like, with all divisions contributing to growth.

• Q4 2024 revenue was €178.7 million, a 7.2% reported and 5.9% like-for-like increase, with strong contributions from all divisions.

• Acquisition of Visiodent in February 2024 and voluntary administration of INPS (In Practice Systems) UK in December, leading to deconsolidation.

• Strongest annual growth came from Marketing, BPO, and Cloud & Support divisions.

Financial highlights

• FY 2024 revenue growth was driven by structure (+4.7%), scope (+1.4%), and currency (+0.2%) effects, with BPO and Data & Marketing leading.

• All divisions posted positive annual growth, with BPO up 15.8%, Data & Marketing up 9.6%, and Cloud & Support up 11.3%.

• EBIT margin for 2024 is expected to be around 5.5%, slightly below 6%, impacted by non-recurring costs from the UK exit.

• Net profit is expected to be close to zero due to over €20 million in non-cash, non-recurring costs from the UK exit.

Outlook and guidance

• 2025 revenue growth is projected at 1–2% including the loss of INPS UK, or around 5% excluding it.

• EBIT margin is expected to improve as cost-cutting and efficiency measures are implemented, with a focus on margin and cash flow generation.

• Recurring operating income is expected to continue improving; INPS deconsolidation to result in significant non-cash adjustments.

• BPO division profitability is expected to improve, with significant gains anticipated in 2026 as the Allianz contract turns profitable.