Equasens: H1 2024 revenues

Villers-lès-Nancy, August 2, 2024 – 18:00 (CET)

PRESS RELEASE

Revenues for H1 2024: EUR 108 million

• The contribution from new acquisitions offset the base effect of Ségur’s digital healthcare investment programme.

• Hardware sales departments are strongly influenced by the economic context.

  • Forecasts for 2024:

    • The Group expects to return to growth in the second half of the year.

    • Profitability in 2024 will be affected by both the continuation of the Group’s investment policy and unfavourable economic conditions.

Equasens Group Revenues for H1 2024 amounted to EUR 108.0 million, down 4.1% on a reported basis and 5.7% on a like-for-like basis compared to H1 2023.
Following a 5.2% decline in Q1 2024, a return to positive momentum in Q2 helped limit the decline to 3.0%, taking into account consolidation changes.

Operational Highlights:

• Our equipment setup and sales (-12.9%) continue to be impacted by the market transformation trend. However, reflecting our ability to anticipate and adapt our offering to the new needs of healthcare professionals, this downward trend is slowing.

• At the same time, our higher value-added activities, such as scalable maintenance services and professional training achieved strong growth (+5.5%).

• This positive momentum was reinforced by the development of new offerings, in particular those delivered on a SaaS basis. The modest decline in the first half of 2024 (-0.9%) was due to an unfavourable comparative base effect resulting from Ségur’s investment programme in Digital Healthcare and related license sales, in particular in the Medical Solutions division.

• PHARMAGEST Division Revenue in H1 amounted to EUR 82.1 million, down 2.0% compared to the first half of the previous year. Revenue in Q2 2024 amounted to EUR 42.2 million, up from EUR 41.4 million in 2023, or 2.1%, and more than 6% higher than in Q1 2024.

  • Despite the complex market environment, the French Pharmacy Business managed to limit the sales decline to 2.7% in Q2 2024 (compared to -10.8% in Q1 2024). This improvement was largely due to a more stable market for the dynamic electronic labeling business (ASCA Informatique) and a rebound in configuration sales. The success of our new offerings, such as the self-service payment terminal and new customer acquisition, also contributed to this positive momentum.

  • The most important events in European business:

    • In Italy, dynamics remained positive, with revenues increasing by 4.1% to EUR 2.5 million;

    • In Belgium, revenues fell by 15.8% to EUR 1.2 million, reflecting difficulties in finding new sales dynamics;

    • In Germany, following the completion of the acquisition in November 2023, the Division contributed EUR 1.5 million in sales in the first half of 2024.

  • Acquisitions in 2023 (ATOOPHARM, ADV) and early 2024 (DIGIPHARMACIE) contributed to an increase in the Division’s sales of EUR 3.6 million.

Revenues from this division represent 76.0% of total Equasens Group revenues.

• AXIGATE LINK section H1 sales reached €15.4 million, up 3.6% year-on-year, mainly due to the success of the TITANLINK SaaS offering in the senior care home sector. This solution currently equips over 500 facilities in France and Belgium.

By constantly adapting to the changing environment, the Division maintains its chosen development direction.

The HAH sector continues to drive growth based on its high-quality offering and high market penetration (60% market share and an installed base including top-tier facilities such as the Greater Paris Public University Hospital or APHP). The hospital sector, focusing on the strategic mid-market segment, particularly in psychiatry, strengthened its position and improved its performance. The division also confirmed the validity of its strategy, achieving strong growth in recurring revenues (+8.8%).

Revenues from this division represent 14.3% of Equasens Group’s total revenues.

• E-CONNECT Departmentafter experiencing exceptional growth in H1 2023 driven by regulatory developments (i.e. the announcement to discontinue sales of Application Reader Terminal), reported H1 2024 revenues of EUR 5.5 million (down 32.3%). The market environment remains very challenging for all healthcare software publishers.

Announcement by the French National Health Fund (Disease of assurance) the announcement at the end of the year that the health insurance card app would be rolled out across France has fueled a promising start to sales of e-health card readers that can read digital cards directly on a smartphone. It is the only card reader on the market made entirely in France.

Revenues from this division represent 5.1% of Equasens Group’s total revenues.

• MEDICAL SOLUTIONS Department had revenues of €3.9 million in the first half of the year, down 19.1% compared to the first half of 2023. After a period of strong growth in 2023, driven by the French healthcare reform program Ségur, the Division is currently in a consolidation phase. It continues to invest in new solutions and attract new customers, in particular with the MédiStory software solution for primary care physicians. In addition, the change in the business model implemented in the second half of 2023 contributed to an increase in the percentage of recurring revenues (+13.7%), reinforcing the stability of the Group’s business.

Revenues from this division represent 3.6% of Equasens Group’s total revenues.

A proactive business development policy, a stable financial market and low interest rates helped keep the Division’s growth dynamics on track.

Revenues from this division represent 1.0% of Equasens Group’s total revenues.

Outlook for 2024

• Taking into account the end of the first half of 2024 and the significant investments, the Group forecasts a moderate decrease in profitability in the first six months of the year. In the second half of 2024, the Equasens Group will continue its ambitious growth strategy, maintaining investments in R&D, infrastructure and human resources at a high level. These investments will support the development of innovative new products and services, strengthen the Group’s ability to offer its online offering as a provider of medical data hosting services, continue to transfer part of its on-premise software offering to a SaaS model and further expand its commercial presence in Europe.

• The growing awareness of the public authorities regarding the seriousness of the financial situation of healthcare workers has led to them signing amendments to national agreements aimed at improving their working conditions.

• Based on these actions, combined with a more favourable economic environment for healthcare workers, the Group expects to return to growth from the second half of 2024, followed by a significant acceleration from 2025.

• The Group is also well-positioned to capitalise on potential external growth opportunities offered by the markets in which it operates and its innovation portfolio.

Financial calendar:

• September 27, 2024: Publication of H1 2024 results

• October 1, 2024: Presentation of H1 2024 results

• November 7, 2024: Publication of Q3 2024 revenues

• February 6, 2025: Publication of Q4/FY2024 revenues

ABOUT Equasens Group

Equasens Group, with over 1,300 employees, is currently a key player in the European healthcare market, providing software solutions to all healthcare professionals (pharmacists, primary care physicians, hospitals, home care programs, nursing homes, health centers) in both the primary and secondary care sectors.

With operations in France, Germany, the UK, Belgium, Ireland, Italy and Luxembourg, Equasens Group now brings together healthcare professionals in a unique ecosystem in France and Europe, helping people by providing them with the best technological solutions.

Listed on Euronext Paris™ – Chamber B

Indices: MSCI GLOBAL SMALL CAP – GAÏA 2020 Index – CAC^® SMALL and CAC^® Possibility of trading in full
Included in the Euronext Tech Leaders segment and the European Rising Tech brand

Eligible for the Deferred Settlement Service (“Service à Réglement Différé” – SRD) and for equity savings accounts invested in small and mid-cap companies (PEA-PME).
ISIN: FR 0012882389 – Stock code: EQS

For the latest news about Equasens Group, please visit www.equasens.comLinkedIn

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Tel.: +33 (0)3 83 15 90 67 – [email protected]

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