Cegedim (CGM) H1 2024 earnings summary

Executive summary

• Revenue for H1 2024 reached €319 million, up 6% year-over-year, with like-for-like growth of 4.6%, driven by the Visiodent acquisition and core activity growth.

• EBITDA increased by 6.9% to €52.2 million, with margin improving to 16.4% from 16.2% year-over-year.

• Recurring operating income declined 3.4% to €10.3 million, mainly due to higher R&D amortization.

• Net profit was nearly breakeven at -€0.1 million, a significant improvement from a -€9.2 million loss in H1 2023, impacted by non-recurring costs and increased amortization.

• Headcount rose 4.6% to 6,769 employees.

Financial highlights

• Net debt increased 28.6% year-over-year to €213.9 million, mainly due to the Visiodent acquisition and related financing.

• EBITDA margin was 16.4%, slightly up from 16.2% in H1 2023.

• Recurring operating income margin decreased to 3.2% from 3.6% year-over-year.

• Free cash flow from operations before financial debt and tax improved by €2 million, but overall operating cash flow declined to €22.2 million.

• Payroll costs rose 5.9% to €173.2 million, reflecting increased headcount.

Outlook and guidance

• Full-year like-for-like revenue growth expected in the 5% to 8% range, with recurring operating income also set to grow.

• H2 is expected to outperform H1, with improved profitability from the Allianz contract as external costs are replaced by internal teams.

• Guidance may be revised if significant macroeconomic or geopolitical risks materialize.

• No Ségur de la Santé subsidies expected in 2024; next wave for paramedical professionals anticipated in 2025.

• EBIT for 2024 is expected to be below the €41 million achieved in 2021, due to higher R&D amortization, but a significant improvement over 2023 is anticipated.