Cegedim (CGM) H1 2025 earnings summary

Executive summary

• Revenue for H1 2025 reached €322.5 million, up 1.1% year-over-year, with like-for-like growth of 2.8% and strong contributions from HR, marketing, health insurance, and digitization businesses.

• Adjusted operating income rose 78-79% to €18.5 million, reflecting strong cost management and the exit of In Practice Systems.

• Major events included SBTi validation of decarbonization targets, conversion of credit facility to a sustainability-linked loan, and transfer of shares to Euronext Growth.

• Workforce restructuring in the French pharmacy business led to a €6 million provision and related costs, impacting non-recurring income.

• Sale of In Practice Systems (INPS) to OneAdvanced completed, with liquidation expected to impact H1 2026.

Financial highlights

• Adjusted EBITDA reached €61.2 million, up 17.2% year-over-year, with margin improving to 19% from 16.4%.

• Operating free cash flow was €56.6 million, a €34.4 million increase from last year.

• Net debt decreased by 15% to €182 million, reflecting improved cash generation.

• Net income group share was €1.2 million, up from €0.6 million year-over-year.

• Non-recurring operating expenses totaled €7.4-9.0 million, mainly from pharmacy restructuring.

Outlook and guidance

• Full-year like-for-like revenue growth expected in the 2%-4% range, with recurring operating income set to increase.

• H2 2024 had exceptional marketing performance due to the Olympics, not expected to repeat in H2 2025.

• Current EBIT for the year targeted between €45-50 million, with H2 expected to contribute €25-30 million.

• Guidance may be revised if geopolitical, macroeconomic, or currency risks worsen.