Compagnie Chargeurs Invest (CRI) Q4 2022 earnings summary

Executive summary

• Revenue reached €746.4m; like-for-like growth was 8.7% excluding Healthcare Solutions, with positive contributions from all businesses.

• Recurring operating profit was €45.4m, down 10.5% reported YoY but up 41.7% excluding healthcare activities.

• Strategic transformation continued through premiumization, growth in Luxury and targeted acquisitions.

Financial highlights

• Revenue was €746.4m, up 1.3%; gross profit was €195.0m, up 4.7%, and gross margin was 26.1% vs 25.3%.

• EBITDA was €67.9m vs €73.8m; recurring operating profit was €45.4m vs €50.7m.

• Operating profit was €38.5m vs €41.2m; attributable net profit was €22.1m vs €30.6m, and EPS was €0.92 vs €1.30.

• Net cash from operating activities was -€7.4m, including a €40.5m working-capital outflow; operating cash flow before working-capital changes was €32.9m.

Outlook and guidance

• 2023 priorities include leveraging Technologies leadership, converting Museum Studio’s order book into profits, accelerating synergies and pursuing a key Luxury acquisition.

• Museum Studio expects 2023 revenue above €120m and a higher operating margin, particularly in H2.

• Luxury is expected to exceed 30% of revenue in 2023; the stated target is to rapidly exceed €500m in Luxury revenue, including through acquisitions.

• Leap Forward rollout is expected to support sustained revenue growth, high operating cash flow and a more balanced contribution from the two divisions.

• 2025 EBITDA targets are above €90m for Technologies and above €30m for Luxury, assuming a normalized macroeconomic environment.