Cegedim (CGM) H2 2024 earnings summary

Executive summary

• Full year 2024 revenue reached €654.5 million, up 6.3% year-over-year, with recurring operating income rising 24.7% to €39.5 million and margin improving to 6.0% from 5.1%.

• EBITDA rose 13.5% to €123.6 million, reflecting cost control and margin improvement to 18.9%.

• Net income showed a loss of €14.7 million, mainly due to non-cash exceptional items, impairments, and capital losses.

• Operating free cash flow increased to €101.8 million, up €3.9 million year-over-year.

• Visiodent acquisition and INPS administration impacted scope, non-recurring items, and net debt.

Financial highlights

• Exceptional items totaled €28.4 million, with only €7 million as cash outflows, mainly for restructuring and acquisition costs.

• Operating income was €11.1 million, down from €20 million last year due to non-recurring items.

• Net debt increased to €185 million, primarily due to the Visiodent acquisition and new borrowings.

• Payroll costs rose 5.5% to €349.8 million, with headcount up 1.2%.

• Capitalized R&D investment grew 14.8% to €45.9 million.

Outlook and guidance

• Like-for-like revenue growth expected in the 2%–4% range for 2025.

• Recurring operating income anticipated to continue increasing, following 2024's trajectory.

• Guidance subject to revision if geopolitical, macroeconomic, or monetary risks worsen.