Solid start to 2024 Gross sales at
€1,255 m up 7% at constant currency1 and up 6% reported
FY-24 outlook confirmed
Regulatory News:
Exclusive Networks (Paris:EXN):
SUSTAINED GROWTH
- Gross sales up 6% to €1,255 m reported on top of 28% growth in
Q1-23
- Growth mostly fueled by largest region: EMEA
- Acceleration in Cloud and Software business reaching 50% of the
mix2
- FY-24 outlook confirmed
M&A FOCUS
- NextGen Group strategic acquisition in APAC
- Strengthens Exclusive Networks’ position in the region and
allows to expand and develop further our value proposition
Exclusive Networks (Euronext Paris: EXN), a leading global
cybersecurity specialist, today announces its Gross sales and IFRS
Revenue for the first quarter of 2024. Management will hold a
conference call at 18:00 pm (CET) today, available via webcast
(https://ir.exclusive-networks.com/). A replay will be available on
our website. All figures relate to this period unless otherwise
stated.12
Jesper Trolle, Chief Executive Officer, commented:
“Exclusive Networks has delivered a solid start to the year, with
7% growth1 in Gross sales in Q1-24, mostly driven by continued
momentum in our EMEA business. This is a robust outcome in light of
the macroeconomic backdrop and the exceptional impact of the supply
chain in the first quarter of 2023.
Acquisitions remain an important growth lever for Exclusive
Networks, having completed more than 20 deals in the last decade.
This quarter we announced the strategic acquisition of NextGen that
will provide us critical mass in Australia and New Zealand, and
strengthen our value proposition thanks to their wide array of
services.
We remain committed to exploring ways of accelerating our growth
and expanding our market potential through strategic acquisitions
that broaden our portfolio and geographic footprint.
The evolving threat environment, influenced by geopolitical
tensions, international conflicts, the adoption of generative AI,
and regulatory demands for increased disclosure of cyberattacks,
continues to position cybersecurity as a top priority for business
leaders worldwide.
As previously indicated, growth is expected to accelerate in the
second half due to ongoing demand for cybersecurity and our
scalable model supports our confidence in meeting our guidance for
2024.”
GROSS SALES AT GROUP AND REGIONAL LEVELS – HIGHLIGHTS
in € million
Q1-23
Q1-24
Variation
Reported
Constant Currency*
EMEA
925
1,009
+9%
+10%
AMERICAS
140
141
+1%
+2%
APAC
115
105
-9%
-6%
GROUP
1,180
1,255
+6%
+7%
* Variation at constant currency is computed using Q1-23 rates
applied to Q1-24 Gross sales. The USD, GBP and PLN evolved as
follows: 1EUR: 1.086 USD; 1EUR: 0.856 GBP, 1EUR: 4.332 PLN
respectively for Q1-24 and 1EUR: 1.073 USD; 1EUR: 0.883 GBP, 1EUR:
4.709 PLN respectively for Q1-23.
IFRS Revenue
in € million
Q1-23
Q1-24
Variation
Reported
Constant Currency*
EMEA
291
298
+2%
+3%
AMERICAS
53
57
+7%
+9%
APAC
54
38
-29%
-27%
GROUP
399
393
-1%
-0%
* Variation at constant currency is computed using Q1-23 rates
applied to Q1-24 IFRS Revenue.
Gross sales were €1,255 million, an increase of 6.4% year
over year on a reported basis (up 7% at constant currency). The
majority of this growth (3.8%) was driven by existing vendor
relationships in geographies where we already operate. The balance
of our growth came from vendor expansion, partly through the
expansion of existing vendors into new geographies (0.9%) and
partly from new vendor relationships (0.7%) and also through
M&A (1.0%).
Gross sales mix grew towards Software licenses and Support &
Maintenance, in line with the strategy in place and confirming the
relevance of the value proposition. Hardware decreased to
24% of the Group’s sales (vs 27% in Q1-23), Software was 50%
(vs 47% in Q1-23) and Support & Maintenance stood at 26%
(26% in Q1-23).
Cloud-based business accounted for 34% of the Group’ sales in
Q1-24, up 6 points compared to Q1-23, in line with the digital
growth strategy in place.
IFRS Revenue takes into account the recognition of the
sales of Software licenses and Support & Maintenance on a Net
margin basis as per IFRS as Exclusive Networks is not the primary
obligor for these solutions. IFRS Revenue reached €393 million,
down 1% on a reported basis due to the high basis of comparison of
Q1-23 Hardware sales, with Hardware decreasing in our sales
mix.
Vendor and Customer retention rates1 remained above 100%,
reflecting the continued engagement of our channel partners. Net
vendor retention rate3 on a rolling 12-month basis at Q1-24 was
at 108% (vs. 126% in Q1-23) and Net customer retention rate1
on a rolling 12-month basis at Q1-24 was at 108% (vs. 123% in
Q1-23).
EMEA (80% of Q1 2024 Gross sales): Gross sales were
€1,009 million, up 9% reported and up 10% at constant currency.
EMEA benefited from a continued healthy demand, reflecting the
strong positioning of the Group in the Region.
AMERICAS (11% of Q1 2024 Gross sales): Gross sales were
€141 million, up 1% reported and up 2% at constant currency after a
50% reported growth performance in Q1-23.
APAC (8% of Q1 2024 Gross sales): Gross sales were €105
million, down 9% reported and down 6% at constant currency,
confirming the stabilization in the Region and a continued
sequential improvement on the back of a high basis of
comparison.
OUTLOOK
Amid the current environment still challenged by macroeconomic
volatility (inflation, interest rates, geopolitical uncertainties),
the Group is aiming to achieve for the FY-24:
- Gross sales growth in a range between 10% and 12% at
constant currency.
- Net margin in the range of €500 million to €515
million
- Adj. EBIT in the range of €200 million to €210
million
- Adj. Operating FCF above 80% of Adj. EBITDA
SIGNIFICANT EVENTS SINCE 31 March 2024
Completion of the Acquisition of NEXTGEN GROUP On April
3rd, 2024, Exclusive Networks completed the acquisition of 100% of
NEXTGEN Group, a leading hyper-growth channel services company
focused on cybersecurity, data resiliency and digital enterprise in
Australia and New Zealand with presence across APAC. This
additional development will offer unique end-to-end value-added
channel management services, supported by real-time data analytics
and AI-backed insights, benefiting the entire APAC region and
providing Exclusive Networks with the ability to roll-out digital
channel services at a global scale.
2023 Universal Registration Document The 2023 Universal
Registration Document was filed with the French Financial Markets
Authority (Autorité des Marchés Financiers – AMF) on April 5th,
2024, under the number D.24-0250.
CONFERENCE CALL Jesper Trolle, Chief Executive Officer,
and Nathalie Bühnemann, Chief Financial Officer, will present the
First quarter 2024 earnings call during a conference call in
English today (April 29, 2024) at 06:00 pm (CET). You can follow
the conference call live via webcast at the following link:
https://ir.exclusive-networks.com/. A replay will also be available
for a period of one year. All documents relating to this
publication will be placed online on the Exclusive Networks
Investor Relations website at https://ir.exclusive-networks.com/
Regulated information related to this press release and
presentation is available at https://ir.exclusive-networks.com/
PROVISIONAL CALENDAR
- Annual General Meeting: June 6th, 2024
- H1 24 Financial Results: August 1st, 2024
- Q3 24 Gross Sales and Revenue: November 5th, 2024
About Exclusive Networks Exclusive Networks (EXN) is a
global cybersecurity specialist that provides partners and
end-customers with a wide range of services and product portfolios
via proven routes to market. With offices in over 45 countries and
the ability to serve customers in over 170 countries, we combine a
local perspective with the scale and delivery of a single global
organisation.
Our best-in-class vendor portfolio is carefully curated with all
leading industry players. Our services range from managed security
to specialist technical accreditation and training and capitalize
on rapidly evolving technologies and changing business models. For
more information visit www.exclusive-networks.com.
DISCLAIMER
This press release may contain forward-looking statements. Such
statements may include projections, estimates, assumptions,
statements regarding plans, objectives, intentions and/or
expectations with respect to future financial results, events,
operations and services and product development, as well as
statements, regarding future performance or events. Forward-looking
statements are generally identified by the words “expects”,
“anticipates”, “believes”, “intends”, “estimates”, “plans”,
“projects”, “may”, “would” “should” or the negatives of these terms
and similar expressions. Although Exclusive Network’s management
currently believes that the expectations reflected in such
forward-looking statements are reasonable, investors are cautioned
that forward-looking statements are subject to various risks and
uncertainties (including, without limitation, risks identified in
Exclusive Networks’ Registration Document available on Exclusive
Networks’ website), because they relate to future events and depend
on future circumstances that may or may not occur and may be
different from those anticipated, many of which are difficult to
predict and generally beyond the control of Exclusive Networks.
Actual results and developments may differ materially from those
expressed in, implied by or projected by forward-looking
statements. Forward-looking statements are not intended to and do
not give any assurances or comfort as to future events or results.
Other than as required by applicable law, Exclusive Networks does
not undertake any obligation to update or revise any
forward-looking statement. This press release does not contain or
constitute an offer of securities for sale or an invitation or
inducement to invest in securities in France, the United States or
any other jurisdiction.
1Variation at constant currency is computed using Q1-23 rates
applied to Q1-24 Gross sales. The USD, GBP and PLN evolved as
follows: 1EUR: 1.086 USD; 1EUR: 0.856 GBP, 1EUR: 4.332 PLN
respectively for Q1-24 and 1EUR: 1.073 USD; 1EUR: 0.883 GBP, 1EUR:
4.709 PLN respectively for Q1-23 2 Defined as Software based sales
weight in the total Gross Sales mix, calculated on a 12-month
rolling. 3 Defined as Gross Sales generated in year N from
vendors/customers active in year N-1 divided by Gross Sales from
the same vendors/customers in year N-1
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240429905834/en/
EXCLUSIVE NETWORKS
Investors & Analysts Hacene Boumendjel
Head of Investor Relations ir@exclusive-networks.com
Media FTI Consulting
Emily Oliver / Charlotte Hewitt +33 (0)1 47 03 68 19
exclusivenetworks@fticonsulting.com
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