- 2023 guidance delivered
- Revenues at € 3,361.7 million in FY23, +7.0%
Y/Y
- EBITDA at € 1,751.8 million in FY23, +10.0% Y/Y, with c.
+146 bps EBITDA margin expansion
- Strong Excess cash generation growth, at more than € 600
million in FY23
- 2024 Guidance confirming continued margin expansion and
strong cash generation growth despite a challenging macro
outlook
- Up to € 500 million share buy-back program over 18 months to
be proposed to the next Shareholders’ Meeting
- Non-cash technical impairment of goodwill and intangibles
for € 1,256.8 million
The Board of Directors of Nexi S.p.A. approved on March 6th the
Group’s consolidated financial results as of December 31st
2023.
"In 2023, we have continued our growth journey across all
geographies, we have further increased our margins, and
significantly accelerated cash generation. Additionally, we have
made further progress in product innovation, in the modernization
of our technological platforms, in the strengthening of our skills,
and in the integration of our organization, which allows us to
further accelerate efficiency and synergies," commented Paolo
Bertoluzzo, CEO of Nexi Group. "Looking ahead, despite a still
uncertain macroeconomic outlook, we expect to continue to expand
our margins and significantly increase the cash generation,
returning to accelerate revenues in the medium term, also thanks to
new drivers of growth such as eCommerce, Germany, and Spain, which
we recently acquired. Given this outlook, we are entering a new
phase in terms of capital allocation: we have decided to initiate
the process of returning capital to our shareholders, while
continuing the ongoing reduction of financial leverage and
sustaining the investments in the organic development of the
business. For this reason, we will propose to the Shareholders'
General Meeting to start a significant buy-back program, with the
conviction that this is the most effective way to create value for
our shareholders in this phase. This progress is possible thanks to
the continued trust of our Customers, the support of our Partners,
and the extraordinary contribution of the People of Nexi."
Key consolidated financial managerial
results1
In FY23 the Group delivered revenues at € 3,361.7 million, +7.0%
versus FY22, and EBITDA at € 1,751.8 million, +10.0% versus FY22.
The EBITDA margin was at 52%, up by 146 basis points compared to
FY22, also thanks to the accelerating efficiencies and synergies
delivery on the back of Group integration.
4Q23 revenues reached € 912.9 million, +6.8% versus 4Q22. 4Q23
EBITDA was at € 484.1 million, +9.7% versus 4Q22, with EBITDA
margin at 53%, up by 139 basis points compared to 4Q22.
Nexi Group’s operating businesses delivered the following
results in FY23:
- Merchant Solutions, representing approximately 56% of
Group's total revenues, reported revenues of € 1,888.6 million,
+7.7% Y/Y, with Germany and eCommerce growing double-digit. In
FY23, 18,524 million transactions were processed, +12.6% Y/Y, with
value of processed transactions at € 825.3 billion, +7.6% Y/Y. In
FY23 transactions value growth continued across the Group,
primarily driven by international schemes. In 4Q23, Merchant
Solutions revenues reached € 497.9 million, +6.2% Y/Y. Acquiring
volumes2 in 4Q23 increased mid-single digit Y/Y in Italy and the
Nordics, while in the DACH region they recorded a strong
double-digit Y/Y growth. In January and February, acquiring volumes
continued their solid Y/Y growth across geographies, despite the
overall macro weakness. The main initiatives realized in Merchant
Solutions during 4Q23 include:
- Extension of Group SME propositions across countries, including
the SmartPOS being launched in the Nordics and SmartPay extension
accelerating in new markets;
- New strategic premium partnership at group level with
WooCommerce, on top of the already signed similar advanced
partnerships with key European e-commerce enablers (i.e., Magento,
Shopware and Prestashop);
- Extension of Group LAKA vertical propositions: solid pipeline
of new customers wins and up/cross selling across multiple
geographies and verticals (e.g. omni-channel retail, hospitality,
EV charging/petrol).
- Issuing Solutions, representing approximately 32% of
Group's total revenues, reported revenues of € 1,090.1 million in
FY23, +7.6% Y/Y, and € 300.8 million in 4Q23, +9.5% Y/Y. The growth
was mainly supported by the success of international debit in Italy
and by the already expected non-recurring contribution related to
banks’ M&A, phasing and projects in Italy. In FY23, 19,290
million transactions were processed, +10.8% Y/Y, with value of
processed transactions at € 888.0 billion, +8.2% Y/Y.
- Digital Banking Solutions, representing approximately
11% of Group's total revenues, reported revenues of € 383.0
million, +1.8% Y/Y.
In 4Q23, Digital Banking Solutions reached € 114.3 million of
revenues, +2.9% Y/Y, sustained by volume growth and new
initiatives.
In FY23, Total Costs were at € 1,609.9 million, with a
limited growth of 3.8% Y/Y despite volume growth and inflationary
pressure, mainly due to the operating leverage and to the several
synergies and efficiencies, on the back of Group integration. In
4Q23 Total Costs were at € 428.8 million, +3.7% versus 4Q22.
Total Capex3 were at € 496 million in FY23, equal to 15%
net revenues, decreasing from € 520 million in FY22, down 4.6 p.p.
Y/Y. In particular, € 386 million were related to the ordinary
innovation of products and services, maintenance of high-quality
services and security, POS and ATM purchase, and € 110 million were
related to transformation and integration initiatives, with a small
portion left to be completed in 2024.
Continued strong reduction of transformation and integration
costs at € 116.1 million in FY23, down 24% versus FY22.
Non-recurring items below EBITDA Reported (shown in the Annex) at €
1,458.3 million in FY23 and are affected by the technical non-cash
impairment charge to the carrying value of goodwill and intangibles
of € 1,256.8 million, reflecting the share price evolution and the
current markets conditions.
Normalised net profit4 in FY23 was € 711.8 million, with
normalised EPS at 0.54 € up by 4.9% Y/Y. The reported Group loss
for FY23 Reported (shown in the Annex) is equal to € 1,006.0
million, following the above mentioned technical non cash
impairment.
The excess cash generation5 was equal to € 601.16 million
in FY23, confirming a strong growth.
As of December 31st 2023, the Net Financial Debt was down
to € 5,262 million, while the Net Financial Debt / EBITDA ratio
decreased at 3.0x, down -0.3x vs FY22. The weighted average debt
maturity is ~3.1 years with an average pre-tax cash cost of debt,
broadly stable versus 3Q23, of ~2.86%.
Share buy-back
The substantial existing cash balances and the strong current
and expected cash generation growth allow to start returning
capital to Shareholders in 2024, while still continuing to support
the planned debt reduction and the limited M&A opportunities in
the future.
Nexi’s management and the Board believe that the current share
price does not reflect the full value of our business and its
outlook and that a share buy-back offers the most effective value
creating opportunity for the shareholders to deploy the excess
cash.
Therefore, Nexi’s Board has resolved to propose an 18 months
share buy-back program up to 500 €M (equal to ~13% free float) at
the next Shareholders' meeting on April 30th, 2024.
In the longer term, Nexi plans to continue to allocate a
material portion of excess capital to shareholders either through
further share buy-back programs or dividends depending on overall
market conditions.
2024 Guidance
For 2024, considering the persistent complex macro outlook, Nexi
announces the following targets:
- Net revenues: Mid-single digit Y/Y growth;
- EBITDA: Mid-to-high single digit Y/Y growth, with margin
expansion of 100 bps+;
- Excess cash generation: More than 700 €M;
- Net leverage: decreasing to below 2.9x including announced
M&A and share buy-back effects, (~2.6x on organic basis).
Updated medium-term
outlook
Nexi, assuming the continued robust cash-to-digital payments
conversion in the key geographies where the Group is present and a
gradual macro recovery in the medium term, foresees:
- Revenues gradually re-accelerating from mid-single digit Y/Y
growth;
- EBITDA margin continuously expanding by ~100 bps+ per
year;
- Continued strong organic cash generation growth, expected to
reach ~1 €B in 2026;
- Target leverage at ~2.0x-2.5x EBITDA by 2026 after further
capital return to shareholders (~1.5x on organic basis).
ESG Progress
The continuous progress within the scope of ESG has been
acknowledged with important international recognitions throughout
2023, highlighting Nexi’s commitment to be NetZero by 2040 across
the entire Group and to apply the same standards to the entire
value chain, as well as its responsible approach to business,
grounded in risk mitigation and a culture of diversity and
inclusion.
* * *
Pursuant to paragraph 2 of article 154 bis of the Consolidated
Finance Act, the undersigned, Enrico Marchini, in his capacity as
the manager in charge of preparing Nexi’s financial reports,
declares that the accounting information contained in this press
release corresponds to the accounting documents, books and records
of Nexi S.p.A..
Reported results under review by PricewaterhouseCoopers.
* * *
Disclaimer: This is the English translation of the original
Italian press release “Approvati i risultati finanziari di Gruppo
al 31 dicembre 2023”. In any case of discrepancy between the
English and the Italian versions, the original Italian document is
to be given priority of interpretation for legal purposes.
Nexi
Nexi is Europe's PayTech company operating in high-growth,
attractive European markets and technologically advanced countries.
Listed on Euronext Milan, Nexi has the scale, geographic reach and
abilities to drive the transition to a cashless Europe. With its
portfolio of innovative products, e-commerce expertise and
industry-specific solutions, Nexi provides flexible support for the
digital economy and the entire payment ecosystem globally, across a
broad range of different payment channels and methods. Nexi’s
technological platform and the best-in-class professional skills in
the sector enable the company to operate at its best in three
market segments: Merchant Solutions, Issuing Solutions and Digital
Banking Solutions. Nexi constantly invests in technology and
innovation, focusing on two fundamental principles: meeting,
together with its partner banks, customer needs and creating new
business opportunities for them. Nexi is committed to supporting
people and businesses of all sizes, transforming the way people pay
and businesses accept payments. It offers companies the most
innovative and reliable solutions to better serve their customers
and expand. By simplifying payments and enabling people and
businesses to build closer relationships and grow together, Nexi
promotes progress to benefit everyone. www.nexi.it/en
www.nexigroup.com
FY 2023 P&L – Reported vs
Normalised
Reported data at current FX with ISP merchant book acquisition
in Croatia consolidated from February 28th 2023. Normalised data
pro-forma for M&A (i.e. ISP merchant book acquisition in
Croatia consolidated from January 1st 2023), at constant FX and
excluding non‐recurring items and other one-offs (e.g. D&A of
customer contracts).
Income Statement
Balance Sheet
________________________
1 2022 and 2023 pro-forma normalised managerial data at constant
FX and scope (i.e. ISP merchant book acquisition in Croatia). 2
Volumes data include sales, International schemes and exclude SIA.
For Italy: data also include national schemes for ISP merchant book
only. For Nordics and DACH region: data include regular business
and exclude non-card based transactions from e-commerce. 3
Managerial figure. 4 Net profit to which non-recurring items and
D&A customer contracts are added back net of taxes. 5 Operating
cash flow generation after cash interest expenses and other cash
items (cash taxes, IFRS 16 and other) 6 Gross of ~100 €M deferred
taxes.+27% y/y growth between ~500 €M excess cash in FY23 (net of
the previously mentioned deferred taxes) and 394 €M excess cash in
FY22.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240306404390/en/
Nexi - External Communication &
Media Relations
Daniele de Sanctis daniele.desanctis@nexigroup.com
Mobile: +39 346/015.1000
Matteo Abbondanza matteo.abbondanza@nexigroup.com Mobile:
+39.348/406.8858
Søren Winge soeren.winge@nexigroup.com Mobile: +45 29 48
26 35
Danja Giacomin danja.giacomin@nexigroup.com Mobile:
+39.334/225.6777
Nexi - Investor Relations
Stefania Mantegazza stefania.mantegazza@nexigroup.com
Mobile: +39.335.5805703 Direct: +39 02/3488.8216
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