Cegedim (CGM) Q2 2025 TU earnings summary

Executive summary

• H1 2025 revenue reached €322.5 million, up 1.1% reported and 2.8% like-for-like, driven by HR, health insurance, marketing, and digitalization activities.

• Health insurance contributed 26% of revenue with 7% growth; business services accounted for 28% with strong HR and compliance-driven growth.

• Deconsolidation of INPS in the UK and integration of Visiodent affected divisional results, with Software & Services revenue declining.

• SBTi validated the group’s greenhouse gas reduction targets; credit facility converted to a sustainability-linked loan, lowering interest rates.

• Major restructuring in pharmacy management software in France will result in about 100 job cuts to align costs with revenue and restore profitability.

Financial highlights

• Like-for-like revenue growth was 2.8% for H1 2025; reported growth was 1.1%.

• Flow division posted 7.8% reported growth, with third-party payer activities up 8.8%.

• Data and marketing division grew 10.8% in H1, with strong performance in France and new client wins.

• BPO division grew 8.1% in H1, driven by insurance and compliance services.

• Cloud and support division had 0.3% growth, impacted by a major contract non-renewal.

Outlook and guidance

• Like-for-like revenue growth for 2025 is expected in the 2%-4% range; recurring operating income is expected to increase.

• Positive EBIT impact anticipated from the removal of INPS and Smart Rx restructuring, with exceptional charges booked in H1.

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