Significant growth in the first half of 2022
- Revenue up1 9.0% at €1,240 million ($1.253M*)
- Recurring operating profit (ROP)2 up1 12.6% at €58.8 million ($59.4M)
- Consolidated net profit up3 10.8% at €33.6 million ($34M)
Business recovery confirmed and high operating margin maintained
The Econocom Group generated a revenue of €1,240 million ($1.253M) 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 ($126M) 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 ($499M), up 1 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 ROP 2 increased1 by 6.3% to €16.9 million ($17M).
• Technology Management & Financing (TMF) confirmed the recovery of its business, with revenue up1 14.0% at €499 million ($505M). TMF ROP 2 was €21.6 million ($21.8M), representing a margin of 4.3%.
• Services generated €248 million ($251M) 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 ($59.4M), compared to €52.3 million ($52.9M) 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 ($10.3M), a net financial expense of €5.8 million ($5.9M) and an income tax expense of €6.4 million ($6.5M), first half net profit from continued activities was €35.5 million ($35.9M), versus €24.8 million ($25M) 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 ($34M), up3 10.8%.
Net financial debt (NFD)4 remains under control
NFD4 was €272 million ($275M) at 30 June 2022, compared to €217 million ($220M) a year earlier. The increase is attributable notably to the decline of approximately €60 million ($61M) in factoring and treasury share purchases totalling €40 million ($41M) 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 amortization 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
*1 EUR = 1.01051 USD, 27.07.22, Source: xe.com