Cegedim: Strong rebound in first half 2021 revenue

Quarterly financial information as of June 30, 2021
IFRS - Regulated information - Not audited

Cegedim: Strong rebound in first half 2021 revenue

• Like-for-like⁽¹⁾ revenue growth reached 6.2% in the first half
• Like-for-like⁽¹⁾ revenue growth reached 11.7% in the second quarter
• Revenue growth target revised higher.

Boulogne-Billancourt, France, July 27, 2021, after the market close

Cegedim generated consolidated H1 2021 revenues of €251.2 million, an increase of 6.3% as reported and 6.2% like for like ⁽¹⁾ compared with the same period in 2020, and up 3.4% compared with 2019.

Second quarter revenues rose 12.2% as reported and 11.7% like for like⁽¹⁾ compared with the same period in 2020 and 2.6% compared with 2019. This growth reflects the fact that Q2 2020 was hit particularly hard by the pandemic, especially pharmacy media and project-based activities in the health insurance sector. Laurent Labrune, Deputy Managing Director of Cegedim, said:

“We had a particularly active start to the year. The Group’s innovation efforts paid off in the form of several sizeable contracts in project-based business, notably in the insurance sector. We also launched Cegedim Santé France, a new unit with its own brand aimed at making us more competitive by bundling products and services for the healthcare professional market while also responding to new public health challenges.

Conditions are still volatile and uncertain, and we are still feeling the impacts of the pandemic, but revenues rose 11.7% like for like in the second quarter of 2021 compared with 2020. This growth reflects our unique positioning within the healthcare space, offering data management, digital technologies, software, flow management, and related services.

Lastly, the acquisition of two best-in-class companies, Médimust and Kobus Tech, has among other things made Cegedim the top medical software publisher in France⁽²⁾ and allowed it to meet the needs of more than 100,000 French healthcare professionals”.

Revenue

(1)   At constant scope and exchange rates.
(2)   Source: GIE SESAM-Vitale.
(3)   At constant scope and exchange rates. Acquisitions and divestments had virtually no impact.
(4)   At constant scope and exchange rates. Exchange rates had virtually no impact. The €3.0 million hit from scope effects, or 1.2pp, was chiefly due to the sale of nearly all of the business activities of Pulse Systems Inc. in the US in August 2019, which was partly offset by the acquisitions of Cosytec in France in July 2019 and NetEDI in the UK in August 2019. The acquisitions of Médimust and Kobus Tech in May 2021 had a marginal impact as of June 30, 2021.

Analysis of business trends by division

• Software & Services

The division’s first half 2021 revenues rose to €140.2 million, up 4.6% like for like⁽¹⁾ compared with 2020 and 1.9% compared with 2019.

The growth came chiefly from a resurgence of project-based business, particularly in health insurance, following a pause of several months. The Group’s allied health professional computerization business in France and its appointment scheduling, remote health, and HR management solutions were particularly dynamic in the second quarter.

• Flow

The division’s first half 2021 revenues rose to €41.7 million, up 8.7% like for like⁽¹⁾ compared with 2020 and 2.6% compared with 2019.

Process digitalization had a strong quarter across all sectors. After people in France reduced their use of the healthcare system early in the year because of public health restrictions, healthcare flow business increased in the second quarter.

• Data & Marketing

The division’s first half 2021 revenues rose to €44.8 million, up 16.5% like for like⁽¹⁾ compared with 2020 and 8.8% compared with 2019.

Data activities experienced strong growth against the backdrop of the pandemic. Advertising in French pharmacies was again close to its pre-pandemic level.

• BPO

The division’s first half 2021 revenues fell to €22.9 million, down 4.3% like for like⁽¹⁾ compared with 2020 but up 5.9% compared with 2019.

A significant portion of this division’s business is providing services for insurance companies and mutual insurance providers, so it took a hit from public health restrictions that caused people in France reduce their use of the healthcare system.

• Corporate and others

The division’s first half 2021 revenues fell to €1.5 million, down 12.6% like for like⁽¹⁾ compared with 2020 and 12.3% compared with 2019.

Highlights

To the best of the company’s knowledge, apart from the items listed below, there were no events or changes during the first half of 2021 that would materially alter the Group’s financial situation.

• Acquisition of Kobus in France

On April 30, 2021, Cegedim acquired French start-up Kobus Tech, which specializes in patient management for physical therapists (patient care summaries, exercise prescription, mail generation, etc.). Its solution has more than 4,000 users. It is perfectly compatible with Cegedim Santé’s solutions and their combined offering is one of the market’s most comprehensive. It began contributing to the Group’s consolidation scope in May 2021.

• Acquisition of Médimust in France

On May 4, 2021, Cegedim acquired Médimust, a software publisher serving healthcare professions for 25 years that currently supplies 2,000 independent physicians. The acquisition cements Cegedim Santé place as France’s number 1 medical software company⁽²⁾. Pooling the companies’ know-how and expertise is strengthening Cegedim Santé’s range of solutions and improving its ability to adapt to market developments and healthcare professionals’ changing needs.

Médimust generated revenues of €1.3 million in 2020 and earned a profit. It began contributing to the Group’s consolidation scope in May 2021.

(1)   At constant scope and exchange rates.
(2)   Source: GIE SESAM-Vitale.

Significant transactions and events post June 30, 2021

To the best of the company’s knowledge, there were no post-closing events or changes that would materially alter the Group’s financial situation.

Outlook

Revenues rebounded immediately after the first lockdown, so after a 2.5% like-for-like ⁽¹⁾ decrease in first half 2020, we saw like-for-like⁽¹⁾ growth of 2.1% in the second half of 2020. Considering this basis of comparison and H1 2021 growth of 6.2%, the Group is raising its target for like-for-like⁽¹⁾ revenue growth in 2021 from 2% previously to 3-5%.

This target may need to be revised if the Covid-19 crisis causes a severe tightening of public health restrictions in Europe after this press release is issued.

The Group will announce any changes to its outlook for recurring operating income⁽¹⁾ growth, currently 4%, when it releases its first half results on September 16, 2021.

The Group does not expect to make any significant acquisitions in 2021. And lastly, the group does not provide earnings estimates or forecasts.

Financial calendar

Annexes

Breakdown of revenue by quarter and division

• Year 2021

• Year 2020

Breakdown of revenue by geographic zone and division as of June 30, 2021

Breakdown of revenue by currency and division as of June 30, 2021

H1 2021 Revenue by sector

Sector / division comparison

Q2 2021 Revenue by division

(1)   At constant scope and exchange rates. Acquisitions and divestments had a positive impact of 0.2pp, exchange rates had a positive impact of 0.3pp due to the pound sterling.
(2)   At constant scope and exchange rates. Exchange rates had virtually no impact. The €1.3 million hit from scope effects, or 1.1pp, was chiefly due to the sale of nearly all of the business activities of Pulse Systems Inc. in the US in August 2019, which was partly offset by the acquisitions of Cosytec in France in July 2019 and NetEDI in the UK in August 2019. The acquisitions of Médimust and Kobus Tech in May 2021 had a marginal impact as of June 30, 2021.

Attachment

• Cegedim_Revenues_2Q2021_ENG