Strong growth in revenue and ROP in H1 2022. Confirmation of the organic growth target of annual revenue in 2022 of 5%

press releases
published on 07/26/2022 - 17:58

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, 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.

• Technology Management & Financing (TMF) confirmed the recovery of its business, with revenue up1 14.0% at €499 million. TMF ROP 2 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

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

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