ECONOCOM: STRONG GROWTH IN REVENUE AND ROP IN H1 2022

Strong growth¹ in revenue and ROP² in H1 2022

Confirmation of the organic growth¹ target of annual revenue in 2022 of 5%

Significant growth in the first half of 2022

• Revenue up¹ 9.0% at €1,240 million

• Recurring operating profit (ROP)2 up¹ 12.6% at €58.8 million

• Consolidated net profit up³ 10.8% at €33.6 million

Business recovery confirmed and high operating margin maintained

The Econocom Group generated a revenue of €1,240 million in the first half of 2022, a sustained increase¹ of 9.0% compared to H1 2021. As a result of the reclassification of certain entities into discontinued activities as of 1 January 2022, these activities, which generated €125 million in revenue in the first half of 2022, are not included in the revenue of the continued activities.

Over the period, trends in continued activities were as follows:

• Products & Solutions (P&S) revenue amounted to €493 million, up¹ 12.0%. Econocom enjoyed positive trends in the digital asset distribution market and benefited from its strong order backlog at the end of 2021, despite the persistence of supply chain issues. P&S ROP² increased¹ by 6.3% to €16.9 million.

• Technology Management & Financing (TMF) confirmed the recovery of its business, with revenue up¹ 14.0% at €499 million. TMF ROP² was €21.6 million, representing a margin of 4.3%.

• Services generated €248 million in revenue, down¹ 4.4%. By contrast, the margin increased by 1.1 percentage points to 8.2%.

Group recurring operating profit² (ROP) increased¹ by 12.6% to €58.8 million, compared to €52.3 million for the same period in 2021. The first half operating margin was 4.7%, stable compared to H1 2021.

After non-recurring operating expenses of €10.2 million, a net financial expense of €5.8 million and an income tax expense of €6.4 million, first half net profit from continued activities was €35.5 million, versus €24.8 million in the first half of 2021, entailing strong growth³ of 42.7%.

After deducting earnings from discontinued activities, consolidated net profit was €33.6 million, up³ 10.8%.

Net financial debt (NFD)⁴ remains under control

NFD⁴ was €272 million at 30 June 2022, compared to €217 million a year earlier. The increase is attributable notably to the decline of approximately €60 million in factoring and treasury share purchases totalling €40 million over the last 12 months.

Outlook 

Econocom maintains its forecast of 5% organic growth in revenue for the full year 2022.

Next publication: information meeting on H1 2022 results, 28 July 2022

¹ For continued activities, at constant scope and accounting standards, including organic growth of acquired companies

² Before amortisation of intangible assets from acquisitions

³ At constant accounting standards

⁴ NFD: Net Financial Debt including current and non-current financial debt and excluding liabilities arising from the application of IFRS 16 to leases (offices, vehicles, etc.) for which Econocom is the lessee

INCOME STATEMENT

BALANCE SHEET

Appendix: Reconciliation between financial data at the end of H1 2021 as reported in the 2021 half-yearly report and data contained in the 2022 half-yearly report.

“H1 2021 reported” corresponds to revenue and ROP² as presented in the 2021 half-year report.

“H1 2021 restated” corresponds to H1 2021 revenue and ROP² as presented in the 2022 half-yearly report released today and takes into account changes in discontinued activities as defined by IFRS 5 and changes in accounting presentations. It serves as the basis for calculating growth rates at constant standards.

“H1 2021 pro forma” corresponds to H1 2021 restated revenue and ROP² also adjusted for changes in exchange rates and consolidation scope (acquisitions and disposals). It serves as the basis for calculating growth rates at constant standards and scope.

Source Actusnews