ADLPartner / ADLPerformance: STRONG EARNINGS GROWTH FOR THE FIRST
HALF OF 2021
PRESS RELEASEParis, September 24, 2021
(5:45pm)
ADLPartner /
ADLPerformanceSTRONG EARNINGS GROWTH FOR THE FIRST
HALF OF 2021
- Net sales: €75.5m (+16%)
- Gross margin: €63.9m (+12%)
- EBITDA: €9.3m, representing 14.5% of the gross
margin
- Net income (Group share): €4.7m (+23%)
Bertrand Laurioz, ADLPerformance Group Chairman
and CEO: “We achieved both growth and profitability during the
first half of 2021. Our Group is progressing across all its
business lines and confirming the strength of its diversified
multi-entrepreneur model, combining consulting, cross-channel
marketing know-how and digital and data expertise serving
brands.
We still have major market opportunities and
prospects, in terms of both our highly recurrent portfolio-based
activities and our strong-growth digital marketing activities,
which are expected to represent more than 50% of our Group’s net
sales by the end of 2022.
Over the coming months, we will continue with
our acceleration towards digital marketing and data marketing,
rolling out our solutions and ramping up synergies between our
business units. Depending on the opportunities, we will continue
moving forward with our external growth, as illustrated by our
recent acquisition of Reech, an influence marketing expert, with a
view to further strengthening our capabilities and our leading
position on a buoyant market.
We are very optimistic about our Group’s
development. The progress made, led by our talented teams and their
drive to conquer, is effectively consolidating our ambition to
become a European leader for data marketing by 2025”.
HALF-YEAR KEY DEVELOPMENTS
During the first half of 2021, the Group
recorded strong growth in business despite the continued
uncertainty relating to the economic and health situation.
The portfolio-based activities confirmed their
robust business model, supported by recurrent revenues. Despite an
unfavorable basis for comparison due to the end of sales under the
France Abonnements brand in 2020, the Magazine business recorded 3%
net sales growth and a 1% increase in its active open-ended
subscription portfolio thanks to progress with partnership-based
recruitments. The Insurance business is continuing to develop its
policyholder portfolio, generating recurrent revenues, and recorded
25% growth in its half-year net sales.
The Digital Marketing business (marketing
services and consulting) generated 41% net sales growth. This
performance reflects the robust development of the subsidiary
Converteo, a market leader for data and digital strategy
consulting, and the extension of the scope for marketing services
activities with the integration of AWE (BtoB digital marketing
agency) and Pschhh’s assets (strategic planning and creation
agency) since the second half of 2020.
EARNINGS
Consolidated data (€m) |
H1 2021 |
H1 2020 |
Change |
Net sales |
75.53 |
64.84 |
+16% |
Gross margin |
63.89 |
57.05 |
+12% |
Restated EBITDA3% of gross
margin |
9.2514.5% |
8.4814.9% |
+9% |
Operating income% of gross margin |
6.8910.8% |
5.8410.2% |
+18% |
Consolidated net income % of gross margin |
4.917.7% |
3.836.7% |
+28% |
Net income (Group share) % of gross margin |
4.757.4% |
3.876.8% |
+23% |
Net sales1 came to €75.5m, up 16% from the first
half of 2020, while the gross margin2 is up 12% to €63.9m.
Against a backdrop of sustained investments,
with major recruitment efforts, restated EBITDA3 came to €9.3m, up
€0.8m versus the previous year, to represent 14.5% of the half-year
gross margin.
Operating income came to €6.9m, representing
10.8% of the gross margin, compared with 10.2% for the first half
of 2020. The growth in earnings for ADLPartner SA, Converteo and
the Spanish subsidiary, and the continued reduction in the loss of
the subsidiary ADLP Assurances offset the drop in performance
levels for the marketing services business in France, which
continued to be affected by the consequences of the health
crisis.
Consolidated net income totaled €4.9m, up 28%.
It includes a €2.1m tax expense.
After deducting minority interests, net income
(Group share) totaled €4.7m, compared with €3.9m for the first half
of 2020.
FINANCIAL STRUCTURE
The Group’s shareholders’ equity at 30 June 2021
is up €1.9m to €25.1m, compared with €23.1m at 31 December 2020,
factoring in half-year earnings and the €3.2m ordinary dividend
paid out in June.
The Group’s net cash came to €34.9m at 30 June
2021, compared with €42.0m at 31 December 2020 and €38.6m at 30
June 2020. Financial debt represents €13.2m, compared with €13.3m
at 31 December 2020, primarily comprising commitments to buy out
the minority interests in Converteo and AWE.
Net asset value4 (Group share), calculated based
on shareholders’ equity and the value of the active open-ended
magazine subscription portfolio, came to €134.6m at 30 June 2021,
with €34.1 per share, excluding treasury stock. It does not include
the portfolio of insurance policies.
OUTLOOK
Confident about its prospects, the Group is
moving forward with its expansion strategy aiming to become a
European leader for data marketing by 2025. With its extensive
financial resources, it is effectively positioned to support an
aggressive growth strategy in digital marketing with a view to
strengthening its positions in this sector, while moving forward
with its commercial investments in its portfolio-based activities
generating recurrent revenues.
GROUP BRAND CHANGE
In order to support the ambition of the Group
and its employees within the framework of the “Ambition 2025 plan”,
the board of directors unanimously validated the change of the
Group’s commercial brand. The new brand will be announced on
Tuesday September 28 (before market)
ADDITIONAL INFORMATION
The corporate and consolidated financial
statements for the first half of 2021 were approved by the Board of
Directors on 24 September 2021. The accounts have been subject to
the usual limited review by the statutory auditors for half-year
accounts. The half-year financial report will be available on 30
September 2021 on the Company website at:
https://www.adlperformance.com/en/financial-documentation
Next date:
2021 third-quarter net sales on 26 November 2021 (after close of
trading)
ADLPartner / ADLPerformance in
brief
With its extensive cross-channel marketing track
record and deep data expertise, the Group designs, markets and
implements customer acquisition, loyalty and relationship
management services on its own behalf or for its partners and
clients across all distribution channels. The Group works with
two-thirds of the companies from the CAC 40 and large numbers of
mid-market firms. The Group employs more than 700 people.
ADLPartner is listed on the regulated market
Euronext Paris – Compartment C.ISIN: FR0000062978–ALP - Bloomberg:
ALP:FP – Reuters: ALDP.PA
www.adlperformance.com
Contacts
ADLPartnerInvestor Relations & Financial
Informationtel: +33 (0)1 41 58 72
03relations.investisseurs@adlpartner.fr |
CalyptusCyril Combe tel: +33 (0)1 53 65 68
68adlpartner@calyptus.net |
1 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.2
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.3
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. 4 Net asset value represents the amount of equity plus the
discounted value of future net revenues generated by the active
open-ended subscription portfolio. It does not include the
portfolio of insurance policies.
- ADLPartner_CP_resultats_semestriels_2021_VE_def