DÉKUPLE: 2023 FIRST-HALF EARNINGS
2023 FIRST-HALF
EARNINGS_____
- Net sales up +7.9% to €96.1m
- Gross margin growth of +9.6% to €78.9m
- Operational profitability resilient, with an EBITDA
margin1 of 13.6% despite the
intensity of investments
- Net income (Group share) of €5.0m, with a net margin of
6.4%
Paris, 29 September 2023 (6:00pm) - The
DÉKUPLE Group, a cross-channel data marketing expert, is reporting
its earnings for the first half of 2023.
Bertrand Laurioz, DÉKUPLE Group Chairman and
CEO: “In a complex economic environment, we are successfully
maintaining our trend for sustained growth, in line with our
Ambition 2025 plan to become a European leader for data
marketing.
During the first half of this year, our
diversified model once again showed its resilience, with our net
sales climbing +7.9% and our gross margin up +9.6%. This robust
trend is supported by the strong growth in our Digital Marketing
activities, which represented 58% of our first-half net sales. For
reference, these activities generated 18% of the Group’s net sales
in 2018.
We are maintaining high levels of profitability,
with EBITDA of €10.7m, representing 13.6% of the gross margin, and
net income (Group share) of €5.0m, representing 6.4% of the gross
margin. Down from the previous year, these results take into
account a high level of investment, not only in our Magazine
business, with its significant commercial investments continuing to
progress despite a challenging general press environment, but also
in our Digital Marketing business, with the structuring investments
required - further strengthening our partners and support teams,
particularly for Consulting - with a view to securing future
growth. These developments were partially offset by the improvement
in results for our Insurance business.
As a data marketing specialist, we will continue
to build on our growth while supporting brands with their marketing
needs (consulting, agencies and solutions), in addition to further
strengthening our own portfolios generating recurrent revenues
(press and insurance) by maintaining our commercial investments.The
percentage of digital marketing within our activities will continue
to ramp up with the development of our consulting activities, the
continued growth in our engagement marketing and engineering
activities, and the increasingly international profile of the
solutions we offer.
We are focusing our development on marketing
innovation powered by data and technology. To support our
ambitions, we have solid financial resources in place and we will
continue to closely monitor opportunities for external growth, in
France and across Europe, in complementary areas with strong
potential, as we were able to do in September with our acquisition
of Le Nouveau Bélier, an advertising strategy consulting agency and
retail expert.
Our 1,000 employees are fully committed to
continue moving forward with our Group’s growth, supporting our
clients and partners, with our Ambition 2025 to become the European
leader for data marketing”.
FIRST-HALF KEY DEVELOPMENTS
During the first half of 2023, the DÉKUPLE Group
achieved solid growth, driven by the continued expansion of its
Digital Marketing activities, which represented 57.7% of
consolidated net sales, compared with 50.8% one year ago. Their
gross margin, up +35.9%, is benefiting from the data marketing
market’s robust development and the growing appeal of the Group’s
data marketing solutions that combine multiple areas of expertise
to enable brands to improve their business performance.
The portfolio-based activities have maintained a
significant level of commercial investments with a view to
supporting their portfolio of subscriptions generating recurrent
revenues. In a challenging general environment for the press
industry, the Magazine business, down -8.2%, was affected by the
contraction in purchasing power for French consumers and the
increase in acquisition costs. Alongside this, the Insurance
business consolidated its growth in relation to a high basis for
comparison in 2022, which benefited from the successful development
of the supplementary health offering.
HALF-YEAR EARNINGS
Consolidated net sales2 came to €96.1m, up +7.9%
compared with the first half of 2022, while the gross margin3 is up
+9.6% to €78.9m.
Against a backdrop of a high level of
investments, restated EBITDA came to €10.7m, down -14.7% from the
previous year, to represent 13.6% of the half-year gross
margin.
Operating income came to €7.1m, representing
9.0% of the half-year gross margin, compared with 13.4% for the
first half of 2022. This change is linked primarily to i) the
significant level of commercial investment maintained in the
Magazine business, ii) the inclusion in results for the Digital
Marketing offers of the structuring investments required to support
their strong growth trend, and iii) the negative results recorded
by the Spanish subsidiary. On the positive side, the subsidiary
ADLP Assurances confirmed the improvement in its profitability.
After factoring in the tax expense (€2.2m),
consolidated net income totaled €4.9m for the first half of 2023,
down -28.7% from the first half of 2022.
After deducting minority interests, net income
(Group share) totaled €5.0m, representing 6.4% of the half-year
gross margin.
(€m) |
First half of 2023 |
First half of 2022 |
Change 2023/2022 |
Net sales |
96.1 |
89.1 |
+7.9% |
Gross margin |
78.9 |
72.0 |
+9.6% |
Restated EBITDA |
10.7 |
12.6 |
-14.7% |
% of gross margin |
13.6% |
17.5% |
|
Income from ordinary operations |
7.1 |
9.7 |
-26.7% |
% of gross margin |
9.0% |
13.4% |
|
EBIT |
7.1 |
9.7 |
-26.7% |
% of gross margin |
9.0% |
13.4% |
|
Net financial expenses / income |
0.1 |
(0.1) |
|
Tax expense |
(2.2) |
(2.4) |
|
Share of net income from associates |
(0.1) |
(0.3) |
|
Consolidated net income |
4.9 |
6.9 |
-28.7% |
% of gross margin |
6.2% |
9.6% |
|
Net income (Group share) |
5.0 |
6.6 |
-23.9% |
% of gross margin |
6.4% |
9.1% |
|
FINANCIAL POSITION AT 30 JUNE
2023
The Group’s shareholders’ equity at 30 June 2023
is up +€0.4m to €37.7m, compared with €37.3m at 31 December 2022,
primarily taking into account half-year earnings (+€4.9m), the
ordinary dividend paid out in June this year (-€3.5m), and the
impact of treasury shares and bonus share awards (-€1.1m).
The Group’s cash position at end-June 2023
represented €58.4m, compared with €58.5m at 31 December 2022 and
€40.2m at 30 June 2022. Financial debt totaled €46.8m, compared
with €50.9m at 31 December 2022, including commitments to buy out
minority interests in the Group’s subsidiaries. It also includes
€26.7m of bank borrowings set up before the crisis at favorable
interest rates to support the Group’s development.
EXTERNAL GROWTH
On 19 September, DÉKUPLE announced that it had
acquired a majority stake in Le Nouveau Bélier, an advertising
strategy consulting firm with Retail expertise (see press release
concerning this operation).
OUTLOOK
Despite the uncertainty linked to the economic
environment, the DÉKUPLE Group is continuing to roll out its
Ambition 2025 strategy with a view to becoming a European leader
for data marketing. With the financial resources in place, it is
effectively positioned to continue with its commercial investments
in its Magazine and Insurance activities to develop its portfolios
of contracts generating recurrent revenues, while also supporting
the development of its Digital Marketing solutions through organic
and external growth.
ADDITIONAL INFORMATION
The corporate and consolidated financial
statements for the first half of 2023 were approved by the Board of
Directors on 29 September 2023. The accounts have been subject to
the usual limited review by the statutory auditors for half-year
accounts. The half-year financial report is available on the
company website at:
https://www.dekuple.com/en/investors/news-documents-presentations/.
NEXT DATE
- 2023 third-quarter net sales on 27 November 2023 (before start
of trading).
About the DÉKUPLE GroupDÉKUPLE
is a European leader for cross-channel data marketing. Its expert
capabilities combining consulting, creativity, data and technology
enable it to support brands with the transformation of their
marketing to drive their business performance. The Group designs
and implements customer acquisition, loyalty and relationship
management solutions for its partners and clients across all
distribution channels. The Group works with more than 500 brands,
from major groups to mid-market firms, in Europe and around the
world.Founded in 1972, DÉKUPLE recorded net sales of €181.2m in
2022. Present in Europe and China, the Group employs more than
1,000 people who are all guided by its core values: spirit of
conquest, respect and mutual support.DÉKUPLE is listed on the
regulated market Euronext Paris – Compartment C. ISIN: FR0000062978
– DKUPL - www.dekuple.com
ContactsDÉKUPLE Investor
Relations & Financial Informationtel: +33 (0)1 41 58 72 03 -
relations.investisseurs@dekuple.comCALYPTUSCyril
Combe - tel: +33 (0)1 53 65 68 68 - dekuple@calyptus.net
1 EBITDA (earnings before interest, tax, depreciation and
amortization) is restated for the IFRS 2 impact of bonus share
awards and the IFRS 16 impact relating to the restatement of lease
charges.2 Net sales (determined in line with the French
professional status for subscription sales) only include the amount
of remuneration paid by magazine publishers; for subscription
sales, net sales therefore correspond to a gross margin, deducting
the cost of magazines sold from the amount of sales recorded. For
acquisition and management commissions linked to sales of insurance
policies, net sales comprise current and future commissions issued,
acquired by the accounting reporting date, net of
cancellations.Following various financial elements reported by the
subsidiaries, 2023 first-half net sales were adjusted by +€0.3m
compared with the half-year net sales figure announced on 28 August
2023.3 For the digital marketing business, the gross margin
represents the total amount of net sales (total invoices issued:
fees, commissions and purchases charged back to customers) less the
total amount of costs for external purchases made on behalf of
customers. It is equal to net sales for the magazine and insurance
business lines.
- DEKUPLE_CP_resultats_semestriels_2023_E
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