Cegedim H1 2021 Earnings

Thursday, 16. September 2021 17:45

First-half financial information at June 30, 2021
IFRS - Regulated information - Audited

Cegedim: Business rebounded strongly in the first half of 2021

  • Like-for-like(1) revenue grew 6.2% in the first half
  • Recurring operating income1 increased by 70.4% to €10.7 million

Boulogne-Billancourt, France, September 16, 2021, after the market close

Cegedim generated consolidated H1 revenues of €251.2 million in 2021, an increase of 6.3% as reported and 6.2% like for like compared with the same period a year ago, and recurring operating income(1) rose 70.4% as reported to €10.7 million.

First-half 2021 performances were boosted by an undemanding comparison with the second quarter of 2020, which was hit particularly hard by the pandemic, especially the pharmacy media business and project-related activities in the health insurance sector. Laurent Labrune, Deputy Managing Director of Cegedim, said:

“The year got off to a particularly robust start, with large contract wins in project-related activities, notably in health insurance. The Group’s investments in innovation are paying off. We also launched Cegedim Santé in France, a new unit with its own brand aimed at making us more competitive by bundling products and services for the healthcare professional market while also responding to new public health challenges.

Conditions are still volatile and uncertain, and we are still feeling the impacts of the pandemic, but revenues rose more than 6% like for like in the first half of 2021 compared with 2020, and recurring operating income is nearly at H1 2019 levels. This reflects our unique positioning within the healthcare space, offering data management, digital technologies, software, flow management, and related services.

Lastly, the acquisition of two best-in-class companies, Medimust and Kobus Tech has, among other things, made Cegedim the top medical software publisher in France(2) and will allow it to meet the needs of more than 100,000 French healthcare professionals.

Consolidated income statement


H1 2021H1 2020ChangeH1 2019
(in €m)(in €m)(in %)(in €m)
EBITDA margin(1)16.9%16.2%+75 bp18.5%
Depreciation & amortization(31.8)(31.9)(0.4)%(32.8)
Recurring operating income(1)10.76.3+70.4%12.6
ROI(1) margin4.3%2.7%+161 bp5.1%
Other non-recurring operating income and expenses(1)4.1(6.2)n.m.(16.3)
Operating income14.80.1n.m.(3.6)
Operating margin5.9%0.1%+585 bp(1.5)%
Cost of net financial debt(5.5)(4.6)+20.6%(4.5)
Net profit attributable to owners of the parent6.5(4.7)n.m.(10.2)
Recurring earnings per share(1) (in euros) 0.4(0.2)n.m.(0.4)
Earnings per share(1) (in euros)0.5(0.3)n.m.(0.7)

Consolidated revenues rose by €15.0 million, or 6.3%, to €251.2 million in the first half of 2021 compared with €236.2 million in the first half of 2020. Acquisitions and divestments had virtually no impact. Like-for-like(1) revenue increased 6.2% over the period.

Recurring operating income(1) rose by €4.4 million, or 70.4%, to €10.7 million in the first half of 2021 compared with €6.3 million in H1 2020. That figure represents 4.3% of revenue at June 30, 2021, compared with 2.7% at June 30, 2020. The improvement stems from reduced spending on business travel, receptions, and marketing, less use of external service providers, and an improved performance from the Data & marketing division owing to a strong recovery by digital advertising in French pharmacies, a business that had been halted for around a month last year.

Other non-recurring operating income and expenses(1) amounted to €4.1 million of income in the first half of 2021 compared with a €6.2 million expense in the first half of 2020. The H1 2021 performance is partly the result of a €4.7 million payment made by a client as part of the early termination of a services contract that was originally supposed to run through 2027. The H1 2020 level was largely attributable to €4.3 million of impairment for certain intangible assets of the UK doctor software business stemming from previous acquisitions.

Depreciation and amortization expenses were virtually flat at €31.8 million in the first half of 2021 vs. €31.9 million a year earlier.

Cost of net financial debt grew by €0.9 million, or 20.6%, to €5.5 million in the first half of 2021, compared with €4.6 million in H1 2020. The main reason for the increase was exchange rate impacts related to the pound sterling. We note that the cost of gross financial debt is stable year on year because the vast majority of debt is at fixed interest rates.

Tax expenses increased by €2.6 million to €2.8 million in the first half of 2021 compared with €0.2 million expenses in the first half of 2020. This increase is due to higher taxes owed on French company profits.

Consolidated net profit attributable to the owners of the parent came to €6.5 million compared with a loss of €4.7 million in the first half of 2020. Earnings per share were a profit of €0.5 in H1 2021 compared with a loss of €0.3 in H1 2020. Recurring EPS (1) was a profit of €0.4 in H1 2021 compared with a €0.2 loss in H1 2020.

Analysis of business trends by division

  • Software & Services
In millions of euros

First halfChange
20212020ReportedLike for like(2)
Recurring operating income(1)2.14.4(52.0)%-
Margin1.5%3.3(178) bp-

Revenues were boosted by the recovery of project-related activities, chiefly in health insurance and HR, which had been postponed for several months amid the various lockdowns. These projects are resuming, but are having to take into consideration clients’ work-from-home arrangements, which are less conducive to change management. The Group’s allied health professional computerization business in France and its appointment scheduling, remote health, and HR management solutions are also trending favorably.

Recurring operating income(1) was hurt by increased hiring for sales teams assigned to Cegedim Santé’s latest offerings and for innovation-focused development teams that do not meet the criteria for capitalized costs. However, businesses catering to health insurance, HR management, and pharmacy computerization in France made positive contributions to recurring operating income(1).

  • Flow
In millions of euros

First halfFirst half
20212020ReportedLike for like(2)
Recurring operating income(1)3.83.7+4.0%-
Margin9.2%9.6%(42) bp-

Process digitalization for data exchange for all sectors had a strong recovery, delivering several projects initiated in the first half of 2021 with the help of new hires. After people in France reduced their use of the healthcare system early in the year because of public health restrictions, healthcare flow business related to reimbursements increased in the second quarter.

(1)Alternative performance indicator See pages 137-139 of the 2020 Universal Registration Document.

(2) Source: GIE SESAM-Vitale.

As a result, the Group has made a strong start to restoring its recurring operating income. The full impact will be felt as healthcare flows return and we start seeing recurring flows related to new projects in the second half.

  • Data & Marketing
In millions of euros

First halfChange
20212020ReportedLike for like(2)
Recurring operating income(1)5.30.6n.m.-

Data activities experienced strong growth against the backdrop of the pandemic. Digital advertising in French pharmacies was back close to its pre-pandemic level, which was very positive for recurring operating income(1).

  • BPO
In millions of euros

First halfChange
20212020ReportedLike for like(2)
Recurring operating income(1)(1.6)(2.0)(15.8)%-

A significant portion of this division’s business is providing services for insurance companies and mutual insurance providers, so it took a hit from public health restrictions that caused people in France reduce their use of the healthcare system. However, it was able to make process improvements that reduced the impact on recurring operating income(1).

  • Corporate and others

Revenues fell 12.6% to €1.5 million, and recurring operating income(1) was a profit of €1.2 million compared with a €0.4 million loss a year earlier.


Apart from events related to the Covid-19 pandemic and those cited above, to the best of the company’s knowledge, there were no post-closing events or changes during the first half of 2021 that would materially alter the Group’s financial situation.

  • Acquisition of Kobus in France

On April 30, 2021, Cegedim acquired French start-up Kobus Tech, which specializes in patient management for physical therapists (patient care summaries, exercise prescription, mail generation, etc.). Its solution has more than 4,000 users. It is perfectly compatible with Cegedim Santé’s solutions and their combined offering is one of the market’s most comprehensive. Kobus was initially consolidated on June 30, 2021.

  • Acquisition of Médimust in France

On May 4, 2021, Cegedim acquired Médimust, a software publisher serving healthcare professions for 25 years that currently supplies 2,000 independent physicians. The acquisition cements Cegedim Santé’s place as France’s number 1 medical software company(3). Pooling the companies’ know-how and expertise is strengthening Cegedim Santé’s range of solutions and improving its ability to adapt to market developments and healthcare professionals’ changing needs.

Médimust generated revenues of €1.3 million in 2020 and earned a profit. It began contributing to the Group’s consolidation scope in May 2021.

Significant transactions and events post June 30, 2021

No significant events occurred between June 30, 2021, and September 16, 2021, when the Board of Directors approved the financial statements.

(1) Alternative performance indicator See pages 137-139 of the 2020 Universal Registration Document.

(2) At constant scope and exchange rates.


As noted on July 27, Cegedim expects like-for-like(1) revenue growth of 3% to 5%. Out of caution, considering the comparison basis with the second half of 2020, the Group reiterates its target for recurring operating income(1) of around 4%.

These targets may need to be revised if the Covid-19 crisis causes a severe tightening of public health restrictions in Europe after this press release is issued.

The Group does not expect to make any significant acquisitions in 2021. And lastly, the Group does not provide earnings estimates or forecasts.


The Audit Committee met on September 15, 2021. The Board of Directors, chaired by Jean-Claude Labrune, met on September 16, 2021, and approved the consolidated financial statements at June 30, 2021, of which the statutory auditors have conducted a limited review. The Interim Financial Report will be available in a few days’ time, in French and in English, on our website and the Cegedim IR app.

2021 financial calendar

The webcast is available at: www.cegedim.fr/webcast
The first-half 2021 results presentation is available:

2021October 28 after the closeQ3 2021 revenues

This press release is available in French and in English. In the event of any difference between the two versions, the original French version takes precedence. This press release may contain inside information. It was sent to Cegedim’s authorized distributor on September 16, 2021, no earlier than 5:45 pm Paris time.
The figures cited in this press release include guidance on Cegedim's future financial performance targets. This forward-looking information is based on the opinions and assumptions of the Group’s senior management at the time this press release is issued and naturally entails risks and uncertainty. For more information on the risks facing Cegedim, please refer to Chapter 7, “Risk management”, section 7.2, “Risk factors and insurance”, and Chapter 3, “Overview of the financial year”, section 3.6, “Outlook”, of the 2020 Universal Registration Document filled with the AMF on April 16, 2021, under number D.21-0320.

About Cegedim:
Founded in 1969, Cegedim is an innovative technology and services company in the field of digital data flow management for healthcare ecosystems and B2B, and a business software publisher for healthcare and insurance professionals. Cegedim employs more than 5,300 people in more than 10 countries and generated revenue of €500 million in 2020.
Cegedim SA is listed in Paris (EURONEXT: CGM).
To learn more, please visit: www.cegedim.fr
And follow Cegedim on Twitter@CegedimGroup, LinkedIn and Facebook.

Media Relations
and Communications Manager
Tel.: +33 (0)1 49 09 68 81

Chief Investment and
Investor Relations Officer
Tel.: +33 (0)1 49 09 33 36

Céline PARDO
Media Relations


Tel.:        +33 (0)6 52 08 13 66


(1)Alternative performance indicator See pages 137-139 of the 2020 Universal Registration Document.

(2) At constant scope and exchange rates.
(3) Source: GIE SESAM-Vitale.


Revenue comparison, sector vs. division

  H1 2021
in millions of euros Health insurance, HR and e-servicesHealthcare
and others
Software & services 67.273.0-140.2
Flow 41.7--41.7
Data & Marketing 44.8--44.8
BPO 22.9--22.9
Corporate & others --1.51.5
Total 176.673.01.5251.2

Recurring operating income(1) comparison, sector vs. division

  H1 2021
in millions of euros Health insurance, HR and e-servicesHealthcare
and others
Software & services 8.6(6.5)-2.1
Flow 3.8--3.8
Data & Marketing 5.3--5.3
BPO (1.6)--1.6
Corporate & others --1.21.2
Total 16.1(6.5)1.210.7

(1)Alternative performance indicator See pages 137-139 of the 2020 Universal Registration Document.

Consolidated financial statements at June 30, 2021

  • Assets at June 30, 2021
In thousands of eurosJune 30, 2021December 31, 2020
Development costs27.53.9
Other intangible fixed assets144.2159.1
Intangible assets171.7163.0
Other property, plant, and equipment34.831.8
Rights of use71.875.6
Non-current assets in progress 0.00.0
Tangible fixed assets109.3110.3
Equity investments1.21.2
Other long-term investments5.74.7
Long-term investments – excluding equity shares in equity method companies21.520.5
Equity shares in equity method companies20.521.5
Deferred tax assets33.233.2
Accounts receivable: long-term portion0.00.0
Other receivables: long-term portion00
Long-term financial instruments0.00.0
Pre-paid expenses, long-term portion0.20.2
Non-current assets549.7534.9
Advances and deposits received on orders0.00.5
Accounts receivables: short-term portion136.7134.7
Other receivables: short-term portion54.1193.7
Short-term financial instruments0.00.0
Cash equivalents0.00.0
Prepaid expenses: short-term portion18.813.1
Current assets247.7370.5
TOTAL Assets797.4905.4

  • Liabilities and equity at June 30, 2021
In thousands of eurosJune 30, 2021December 31, 2020
Share capital 13.313.3
Consolidated retained earnings199.3188.5
Foreign currency translation reserves(2.5)(5.0)
Group earnings6.510.8
Shareholders’ equity, Group share216.6207.7
Minority interest 0.30.2
Shareholders’ equity216.9207.9
Long-term financial liabilities 186.5186.3
Non-current lease liabilities58.662.3
Long-term financial instruments0.00.1
Deferred tax liabilities7.87.6
Retirement benefit commitments36.935.3
Non-current provisions2.32.6
Other non-current liabilities 0.00.0
Non-current liabilities292.1294.1
Short-term financial liabilities 6.02.6
Current lease liabilities 15.015.2
Short-term financial instruments 0.00.0
Accounts payable, current48.043.2
Tax and social security liabilities 115.9108.7
Current provisions2.03.0
Other current liabilities 101.6230.5
Current liabilities288.5403.3
TOTAL Liabilities797.4905.4
  • Income statement at June 30, 2021
In millions of eurosJune 30, 2021June 30, 2020
Revenue 251.2236.2
Purchases used(13.0)(12.0)
External expenses(49.8)(51.9)
Employee costs(139.4)(127.9)
Impairment on accounts receivable and other receivables and on contract assets (0.3)(2.1)
Allowances to and reversals of provisions (2.0)(0.7)
Change in inventories of products in progress and finished products 0.00.0
Other operating income and expenses0.10.1
Share of profit (loss) for the period of income from equity-accounted affiliates0.11.7
Depreciation expenses other than right-of-use assets (23.7)(24.3)
Depreciation expenses of right-of-use assets(8.1)(7.7)
Recurring operating income(1)10.76.3
Impairment of acquisition goodwill0.00.0
Non-recurring operating income and expenses(1)4.1(6.2)
Other non-recurring operating income and expenses(1)4.1(6.2)
Operating income14.80.1
Income from cash and cash equivalents 0.10.0
Cost of gross financial debt(4.2)(4.3)
Other financial income and expenses (1.4)(0.3)
Cost of net financial debt(5.5)(4.6)
Income taxes(3.1)(0.5)
Deferred income taxes0.20.3
Share of net profit (loss) of equity method companies0.00.0
Consolidated net profit6.5(4.6)
Group share 6.5(4.7)
Income from equity-accounted affiliates0.00.0
Average number of shares excluding treasury stock 13 824 49313 826 606
Recurring earnings per share(1) (in euros)0.4(0.2)
Earnings per share (in euros) 0.5(0.3)

(1)Alternative performance indicator See pages 137-139 of the 2020 Universal Registration Document.

  • Cash flow statement as of June 30, 2021
In thousands of eurosJune 30, 2021June 30, 2020
Consolidated profit (loss) for the period 6.5(4.6)
Share of earnings from equity method companies (0.1)(1.7)
Depreciation and amortization expenses and provisions 32.236.4
Elimination of revaluation profits / losses (fair value)0.00.0
Capital gains or losses on disposals0.0(0.3)
Elimination of dividend income0.00.0
Cash flow after cost of net financial debt and taxes38.629.9
Cost of net financial debt5.54.6
Tax expenses2.80.2
Operating cash flow before cost of net financial debt and taxes 47.034.7
Tax paid0.6(2.1)
Impact of change in working capital requirements9.018.1
Cash flow generated from operating activities after tax paid and change in working capital requirements 56.650.7
Acquisitions of intangible assets (25.3)(27.8)
Acquisitions of tangible assets (7.9)(5.0)
Acquisitions of long-term investments (1.1)(1.0)
Disposals of tangible and intangible assets0.00.3
Disposals of long-term investments0.80.0
Change in deposits received or paid0,1(1.3)
Impact of changes in consolidation scope(5.1)0.0
Dividends received 0.10.1
Other cash flows from investment activities0.00.0
Net cash flow used in investing activities (38.4)(34.7)
Dividends paid to shareholders of the parent company 0.00.0
Dividends paid to minority shareholders of consolidated cos.0.00.0
Capital increase0.00.0
Debt issuance0.00.0
Debt repayments(0.1)(10.2)
Employee profit sharing 0.60.3
Repayment of lease liabilities (8.7)(7.5)
Interest paid on loans(0.1)(0.3)
Other income 0.40.1
Other financial expenses paid (2.1)(1.2)
Net cash flow used in financing activities (10.2)(18.7)
Change in net cash excluding currency impact 8.1(2.8)
Impact of changes in foreign currency exchange rates 0.2(0.2)
Change in net cash 8.2(2.9)
Opening cash24.729.1
Closing cash32.926.1

(1)Alternative performance indicator See pages 137-139 of the 2020 Universal Registration Document.

(2) Source: GIE SESAM-Vitale.


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