Creactives Group (CREG) H1 2024 earnings summary

Executive summary

• FY 2023-24 production value reached €7.98m, up 15% YoY; sales including WIP were €6.64m, up 20%. Recurring revenue rose 23% to €3.9m, reaching 59% of sales.

• EBITDA was €282,370, down 28%, while consolidated net loss narrowed slightly to €1,050,735 from €1,062,984.

• ARR rose 7% to €5.16m; international customers generated 87% of turnover.

Financial highlights

• Net sales were €6.64m versus €5.53m in FY 2022-23; production value rose to €7.98m from €6.97m.

• EBITDA margin fell to 3.5% from 5.6%; operating loss was €883,590 versus €614,591, and financial costs rose to €135k from €102k.

• Costs of production increased 17% to €8.86m; personnel costs rose 16% to €3.77m, reflecting inflation-linked salary increases and eight new hires. Higher hosting, cybersecurity, compliance and third-party costs also contributed.

• Net financial debt increased to €1,500,080 from €532,145; equity fell to €1.04m from €2.11m. Cash and equivalents declined to €407k from €851k.

Outlook and guidance

• FY 2024-25 priorities include scaling international go-to-market activity with partners and securing contracts expected to contribute to revenue and margin growth.

• Planned expansion into new use cases includes SAP integration and support for SAP S/4HANA migrations; investment in Vanessa and AI applications will continue.

• Medium-term focus is growing recurring revenue to cover operating costs; contract awards and project starts can be delayed, and sales cycles may exceed six months.