Quadient - Solid FY 2023 results bring the Back to Growth strategic
plan to a close with Quadient well positioned for long-term
profitable growth
Solid FY 2023 results bring the Back to
Growth strategic plan to a close with Quadient well positioned for
long-term profitable growth
Key highlights
-
FY 2023 consolidated sales of €1,062 million,
up +1.9%
organically(1)
-
FY 2023 subscription-related revenue up +3.4% on
an organic basis, representing 70% of total
revenue
-
Strong performance from North America with all
three solutions contributing to the +4.5% organic
growth in the region in FY 2023. North America represents
57% of Group Sales
-
FY 2023 current
EBIT(2)
of €157 million, up 9.3%
organically driven by both software and locker
profitability improvement
-
Net attributable income of €69 million, up from
€13 million in FY 2022
-
Proposed dividend of €0.65 per
share, up for the third consecutive year,
and up +8% year-over-year
-
Leverage ratio excluding leasing at
1.65x3 exceeding the 1.75x target
set early 2021
-
Positive outlook for FY 2024
-
Capital Markets Day to outline the 2024-2026
strategic plan scheduled for 19 June
2024
Paris, 25 March 2024,
Quadient S.A. (Euronext Paris:
QDT), a leader in business solutions for meaningful customer
connections through digital and physical channels, today announces
its 2023 fourth-quarter consolidated sales and full-year results
(period ended on 31 January 2024). The full-year
2023 results were approved by the Board of Directors during a
meeting held on 22 March 2024.
Geoffrey Godet, Chief Executive Officer of
Quadient S.A., stated: “By thoroughly executing our Back to Growth
strategic plan over the past five years, we successfully
repositioned Quadient as an integrated and innovative B-to-B
subscription platform, powering billions of connections every day
and meeting a wide range of essential business and communication
needs. To deliver our strategic vision, we divested non-core
activities and selectively acquired several key assets. This now
provides us with the opportunity to leverage our 400,000+ customer
base, having developed integrated, fast growing, synergistic, and
therefore highly relevant solutions.
“More specifically, the second phase of our
plan, launched three years ago, was aimed at setting Quadient on a
sustainable top line and current EBIT(2) growth trajectory. Today’s
results confirm the positive trend followed by Quadient since the
low point reached in 2021 and evidenced by the 9.3% organic growth
recorded in 2023. In addition, our disciplined capital allocation
policy allowed us to bring our leverage down every year, standing
at 1.65x in 2023 (i.e., exceeding the 1.75x target set three
years ago) and increase our proposed dividend for the third
consecutive year, while also making the necessary acquisitions and
investments over the period. Importantly, ESG has remained at the
core of Quadient’s organization, with the Group being continuously
recognized for its strong ESG credentials. I would like to thank
our teams for their unwavering commitment to delivering such strong
achievements.
“This solid performance coincides with three
major successes for our Software activities: a return to operating
profitability, the successful transition to a SaaS business model,
and the deployment of a cloud platform recognized as an undisputed
leader in its field by industry analysts, notably for its use of
AI-driven technologies. The improving operating trend is expected
to continue, driven by sustained organic growth in
subscription-related revenue, thanks, in particular, to significant
cross-sales to our existing customer base. Meanwhile, our Mail
business has continued to exceed expectations, through growth in
product placements, and by maintaining a high level of
profitability. Finally, in our Locker Solution, building upon our
experience in Japan, we have increased our strategic focus towards
scaling open networks. Whilst we are still in the initial
investment phase in France and in the UK, the already high
operating profit margin for the existing installed base gives us
confidence in further improvement in revenue growth and
profitability for this activity.
“As we are closing this key chapter in the
history of the Company, I look forward to sharing the next stage of
our journey with you, so please join us on 19 June 2024 for our
2024-2026 Capital Markets Day presentation”.
FINANCIAL PERFORMANCE BY SOLUTION AND
GEOGRAPHY
Group sales came in at
€1,062 million in FY 2023, a 1.9% organic
growth compared to FY 2022 and a (0.8)% decrease on a
reported basis. Organic growth was in line with the guidance of
c.2% revised in November 2023. The reported growth includes a
negative currency impact of €25 million and a negative scope
effect of €4 million. The change in scope is related to the
divestments of the Graphic activities in the Nordics and the
Shipping business in France, both sold in June 2022 as well as the
acquisition of Daylight in September 2023. The FY 2023 financial
statements reflect Quadient’s decision to review the future of its
Mail activity in Italy with a view to divest this subsidiary within
the next 12 months. Therefore, the P&L contribution of the
above-mentioned subsidiary is presented as discontinued operations.
The FY 2022 financial statements have been restated for comparison
purposes.
In the fourth quarter of 2023,
consolidated sales stood at €284 million, up
1.4% on an organic basis and down (0.3)% on a reported basis
compared to the fourth quarter of 2022.
Consolidated sales and current
EBIT(2) by Solution
FY 2023 consolidated sales
In € million |
FY 2023 |
FY 2022 |
Change |
Organic change |
Intelligent Communication Automation |
245 |
227 |
+7.9% |
+9.0% |
Mail-Related Solutions(a) |
729 |
747 |
(2.4)% |
(0.2)% |
Parcel Locker Solutions(a) |
88 |
91 |
(3.1)% |
+1.6% |
Other solutions divested in 2022 |
0 |
5 |
n/a |
n/a |
Group total |
1,062 |
1,071 |
(0.8)% |
+1.9% |
(a) Mail-Related Solutions and Parcel Locker Solutions
2022 data have been restated to reflect the fact that they now
include activities previously accounted for in Additional
Operations. |
Current
EBIT(b) and current EBIT
margin(b) by Solution – FY
2023
|
FY 2023 |
FY 2022 |
In € million |
Current EBIT |
EBIT margin |
Current EBIT |
EBIT margin |
Intelligent Communication Automation |
1 |
0.3% |
(10) |
(4.5)% |
Mail-Related Solutions(a) |
177 |
24.3% |
187 |
25.0% |
Parcel Locker Solutions(a) |
(21) |
(23.4)% |
(25) |
(27.8)% |
Other solutions divested in 2022 |
- |
- |
(0) |
(5.3)% |
Group total |
157 |
14.8% |
151 |
14.1% |
(a) Mail-Related Solutions and
Parcel Locker Solutions 2022 data have been restated to reflect the
fact that they now include activities previously accounted for in
Additional Operations(b) Before
acquisition-related expenses
Intelligent Communication
AutomationIn FY 2023, sales from Intelligent
Communication Automation reached €245 million, up
9.0% organically and up 7.9% on a reported basis compared to FY
2022.
Subscription-related revenue recorded a strong
16.8% organic growth, now representing 80%
of Intelligent Communication Automation total sales, a
significant increase compared to 75% in FY 2022. The
successful onboarding of 4,000+ cloud customers on the new Quadient
Hub since April 2023 has been a key supportive factor for the
upsell of additional modules of the Hub to existing customers. At
c.+10% in the FY 2023, usage has increased
further. The share of SaaS customers also improved,
reaching 82% at the end of FY 2023.
The change in business model from on-premise
licenses to SaaS and the lower requirements for installation and
support services continue to drive the decline in professional
services and license sales, which, together, are now representing
only 13% and 7% of total revenue, respectively. At the end of FY
2023, annual recurring revenue (ARR), which is a
forward-looking indicator of future subscription-related revenue,
reached €206 million, up from
€187 million at the end of FY 2022, representing a
12.1%
organic(4)
growth compared to the end of FY 2022.
Organic growth for the year was impacted by the postponement of two
large contracts recorded in Q3 2023.
Throughout FY 2023, Quadient continued to sign
significant partnerships, notably with Altares and Coface, to offer
highly accurate company rating and credit analysis for its Accounts
Receivable module. Quadient financial automation modules are now
also recommended to Sage Intacct customers and partners, with
Quadient reaching Sage Tech Partner plus status. In addition,
Quadient solutions are now integrated with global small business
platform Xero, offering their customers access to Quadient’s
Accounts Payable automation capabilities to drive efficiencies.
In the course of the year, Quadient Software
product offering benefitted from continuous improvements with:
- The launch of
the Quadient Hub
- The addition of
Daylight, acquired in Q3 2023, rebranded Inspire iForms and
subsequently relaunched;
- Enhanced Cash
Application module with machine learning and new next-gen payment
user interface;
- On-premise
solutions enhanced with private cloud deployment options.
Q4 2023 sales were up by 7.2%
on an organic basis to €66 million with positive performance
from all geographies. The subscription-related revenue showed a
strong organic growth at +14.4%. In Q4 2023, Quadient recorded its
highest quarter ever for Mail customers cross sold to the
Software platform in North America.
Current
EBIT(2) for Intelligent Communication
Automation achieved a significant milestone, by
reaching profitability, at €1 million, i.e. a current
EBIT margin(2) of 0.3%, up 4.8 points compared to
FY 2022. This solid improvement comes as Quadient’s Software
Solution has almost completed its transition from on-premise
licenses to SaaS. It confirms the upturn in profitability trend
seen since the inflexion point in H2 2022, despite continued
investments in R&D and product developments. The improving
profitability trend is expected to continue in FY 2024 supported by
a good level of SaaS bookings.
Mail-Related Solutions
Mail-Related Solutions sales
reached €729 million in FY 2023, down only (0.2)% on an
organic basis and down (2.4)% on a reported basis. North America
and International recorded strong performances with year-over-year
organic growth, while Main European Countries showed a contained
decline thanks to improving trends in France/Benelux.
Hardware sales recorded a 2.1% organic
growth in FY 2023, with a solid performance in Q4, notably
a double-digit increase in the United States. The
focus on investing into renewing the products offering continues to
support solid product placements, as seen in the further increase
in the share of the upgraded installed base,
reaching 31.5% at the end of FY 2023 vs. 19.9% at
the end of FY 2022.
Subscription-related revenues
(68% of Mail-Related Solution sales) recorded a limited
(1.3)% organic decline in FY 2023, thanks to a solid
performance throughout the year, supported both by robust rental
product placements and the positive impact on recurring revenue of
recent good performance in hardware sales. Solid year-over-year
increase in bookings throughout FY 2023 reflect the focus on
maintaining an efficient go-to-market, drawing in particular on
innovative products. The multiple contracts recently won within the
US healthcare industry highlight how Quadient Mail-Related
Solutions is able to strengthen its position in an attractive
industry with critical communications needs.
Q4 2023 sales continued to show
strong resilience, reaching €196 million in Q4, up by 0.3% on
an organic basis. Of note, the strong performance in hardware
sales, up 3.4% year-over-year on an organic
basis.
Current EBIT(2) for
Mail-Related Solutions was €177 million for FY 2023. Current
EBIT(2) margin reached 24.3%. The level of profitability of
Mail-Related Solutions remains high despite investments in sales
capabilities. Tight cost control and continued focus on
remanufacturing, as well as the increased penetration of the new
generation of mail equipment all contributed to this strong
performance.
Parcel Locker Solutions
Parcel Locker Solutions sales
reached €88 million in FY 2023, a 1.6% increase on an organic basis
and a (3.1)% decrease compared to FY 2022. Quadient’s
global locker installed base reached c.20,200 units at the end of
FY 2023 vs. c.18,000 units at the end of
FY 2022. Over the 2021-2023 period, it represents an 18%
average increase per annum.
Subscription-related revenues were up
5.3% organically in FY 2023, benefiting from the
contribution of the existing installed base and the deployment of
existing contracts. Subscription-related revenue stood at 61% of
total revenue for Parcel Locker Solutions in FY 2023 and the usage
rate of the platform remained solid, standing at 58% in FY
2023.
FY 2023 has been a year of transition for Parcel
Locker Solutions with two material events: i) an increased
focus on open-networks in France and in the UK and ii) the
renewal in July 2023 of the joint-venture
with Yamato with significant changes brought to the commercial
agreement – from a mostly fixed rental model to a fee per
parcel model (based on usage consumption) – to maximize volume
usage. Consequently, the FY 2023 performance reflects these
changes. Based on strong relationships with a significant number of
international carriers, the open network strategy is aiming at
growing both usage & the installed base through:
- securing
volumes with international carriers (GLS, Evri, UPS, DHL,
Yamato Transport…);
- prime
locations to install parcel lockers.
Solid volumes ramp up into the existing
open networks and continuous efforts to secure prime
locations and accelerate lockers deployment should
drive future growth in subscription-related revenue.
License and hardware sales were down
(7.5)% organically in FY 2023. Hardware sales suffered
from high comparison basis due to one off deals in FY 2022.
Quadient’s US multifamily business, however, has continued to grow
at a steady pace in FY 2023.
Q4 2023 sales stood at
€22 million in Q4 2023, a (4.8)% organic decline due to a high
comparison basis in International with one-off deals in Q4 2022 as
well as the impact from the Yamato contract renegotiation.
Current
EBIT(2) for Parcel Locker Solutions was
negative at €(21) million in FY 2023, compared to €(25)
million in FY 2022, i.e. an EBIT margin(2) of (23.4)%,
improving by 4.4 points compared to FY 2022. The
improvement in operating profitability was led by gross margin
expansion through efficiency measures and lower freight costs.
Profitability is expected to continue improving in
2024. Lastly, profitability of the installed base
continues to increase year-over-year, standing at
13.6% in FY 2023 vs. 12.5% in FY 2022.
Consolidated sales by
geography
FY 2023 consolidated sales
In € million |
FY 2023 |
FY 2022 |
Change |
Organic change |
North America |
607 |
599 |
+1.4% |
+4.5% |
Main European countries(a) |
354 |
356 |
(0.8)% |
(2.4)% |
International(b) |
101 |
116 |
(12.3)% |
+1.9% |
Group total |
1,062 |
1,071 |
(0.8)% |
+1.9% |
(a) Including Austria, Benelux, France, Germany,
Ireland, Italy (excluding MRS), Switzerland, and the United
Kingdom(b) International includes the activities of
Intelligent Communication Automation, Mail-Related Solutions and
Parcel Locker Solutions outside of North America and the Main
European countries as well as, in Q1 2022, other solutions
previously recorded under Additional Operation and divested in Q2
2022 |
Sales in North America (57% of
Group sales) were up 4.5% organically and 1.4% on
a reported basis to €607 million. All three
Solutions posted organic growth in FY 2023.
Intelligent Communication Automation was the main
contributor to the growth in the region with a solid
double-digit organic growth. Penetration of Quadient’s
cloud-based solutions continues to be well supported by successful
cross-selling from the Mail customer base. Mail-Related
Solutions continued to show positive performance,
benefiting from the solid penetration of recently launched products
meeting the requirements brought by the ongoing USPS
decertification. North America
posted 4.9% organic growth in the fourth
quarter driven by the growth in the three solutions.
Main European countries (33% of
Group sales) were down by (2.4)% organically and (0.8)% on a
reported basis to €354 million, due to a limited decline from
Mail-Related Solutions, and despite:
- The positive
contribution from Intelligent Communication Automation with a good
penetration of recently launched products, and
- Organic growth
in Parcel Locker Solutions supported by both the ramp up in volumes
in the open networks and the on-going deployment of existing
contracts.
Main European Countries posted
a 1.8% organic decline in Q4 2023, with a contained decline from
Mail-Related Solutions and solid organic growth from Intelligent
Communication Automation.
Finally, the International
segment (10% of Group sales) delivered a 1.9% organic growth, to
€101 million, thanks to solid performance in Intelligence
Communication Automation and Mail-Related Solutions partially
compensated by both the impact from the change in contractual
agreement with Yamato and the temporary slowdown in the expansion
of the Japanese lockers network. International sales declined by
(6.7)% organically in Q4 2023.
REVIEW OF 2023 FULL-YEAR
RESULTS
Simplified P&L
In € million |
2023 |
2022 |
Change |
Sales |
1,062 |
1,071 |
(0.8)% |
Gross profit |
788 |
785 |
+0.4% |
Gross margin |
74.2% |
73.3% |
|
EBITDA |
244 |
240 |
+1.8% |
EBITDA margin |
23.0% |
22.4% |
|
Current operating income before acquisition-related
expenses |
157 |
151 |
+4.4% |
Current operating margin (before acquisition related expenses) |
14.8% |
14.1% |
|
Current operating income |
147 |
140 |
+4.5% |
Optimization expenses and other operating income &
expenses |
(15) |
(73) |
n.m |
Operating income |
132 |
67 |
+96.5% |
Financial income/(expense) |
(31) |
(36) |
n.m |
Net income of continued operations |
84 |
16 |
n.m |
Net income from discontinued operations |
(14) |
(0) |
n.m. |
Net attributable income |
69 |
13 |
n.m |
Earnings per share |
2.02 |
0.29 |
|
Diluted earnings per share |
2.01 |
0.29 |
|
Gross margin increased
to 74.2% in FY 2023 from 73.3% in FY 2022. Improvement was
mainly driven by supply chain efficiency, cost control measures and
positive volume/mix effect.
Current operating income before
acquisition-related expenses (current
EBIT(2))
increased for the third consecutive year on a reported
basis, reaching €157 million in FY 2023 compared to
€151 million in FY 2022. Current EBIT(2) was up 4.4% on a
reported basis and up 9.3% on an organic basis, in line
with the c.10% organic growth guidance for the year.
Current operating margin before
acquisition-related expenses stood at 14.8% of
sales in FY 2023 compared to 14.1% in FY 2022. The Group’s
improvement in operating profitability was achieved without
compromising on R&D spending and despite further
investments in go-to-market.
Acquisition-related expenses
increased slightly to €11 million in FY 2023, compared to
€10 million in FY 2022. Consequently, current
operating income stood at €147 million in FY 2023,
compared to €140 million in FY 2022.
Optimization costs and other
operating expenses stood at €15 million in FY
2023, versus €73 million in FY 2022 which was impacted by
goodwill impairment and corporate office restructuring.
Consequently, operating
income reached €132 million in FY
2023, versus
€67 million
recorded in FY 2022.
Net attributable income
Net cost of debt was slightly
up year-on-year at €29 million, against €27 million in FY
2022. Higher interest rates on the variable portion of the debt
(one third of Quadient’s debt) and the c.€2 million
financial gain on the partial €57 million buy back of the
2025 bond over the October 2023 - January 2024 period were the main
factors behind the variation. The currency gains & losses and
other financial items were a loss of €(1) million in FY 2023
versus a loss of €(4) million in FY 2022. Overall, net
financial result was a loss of €31 million in FY 2023 compared
to a loss of €36 million in FY 2022.
Income tax expense was
stable year-over-year at €17 million in FY
2023 and benefitted from a positive impact of internal IP
transfer in 2023.
The corporate tax rate
dropped to 16.6% in FY 2023 compared to 54.8% in
FY 2022. FY 2022 level was impacted by the low level of income
before tax due to goodwill impairments.
Net income from discontinued
operations of the Mail Italian subsidiary amounts to €(14)
million, level which also includes exceptional charges linked
to the sale process for this subsidiary.
Net attributable
income after minority interest amounted
to €69 million in FY 2023 compared to €13 million in FY
2022.
Earnings per share from continued
operations came in at €2.42 in FY
2023 compared to €0.30 in FY
2022. The fully diluted earnings per
share(5) was
€2.41.
Earnings per share stood at
€2.02 in FY 2023 compared to €0.29 in FY 2022. The fully diluted
earnings per share(5) was €2.01.
Proposed dividend for FY 2023
stands at €0.65 per share, representing an 8% increase
against FY 2022. This would be the third
consecutive year of growth for Quadient’s dividend. The
dividend is subject to approval by the Annual General Meeting,
scheduled for 14 June 2024, and will be paid in cash in one
instalment on 7 August 2024.
Cash flow generation
EBITDA(6)
reached €244 million in FY
2023, representing a slight increase compared to FY 2022, hence an
EBITDA margin at 23.0% in FY
2023, vs 22.4% in FY 2022.
The change in working capital
was negative by €6 million in FY 2023 compared to a net cash
outflow of €40 million in FY 2022, mostly reflecting
an improvement in stock levels after end of FY 2022 level was
impacted by high locker and mail inventories due to delays in
placements.
The leasing portfolio and other
financing services stood at €598 million as of
31 January 2024, compared to €595 million as of
31 January 2023, thanks to the solid performance of the Mail
activity and a small positive currency impact. On an organic basis,
the leasing portfolio is stable year-over-year. At the end of FY
2023, the default rate of the leasing portfolio stood at around
1.3% compared to c.1.6% at the end of FY 2022.
Interest and taxes paid
increased significantly to €55 million in FY 2023 versus the
low amount of €35 million paid in FY 2022. The difference was
mostly explained by the reimbursement of the 2020 tax loss
carry-back measures in the US in H1 2022 as well as the impact from
higher interest rates in FY 2023.
Capital expenditure was up to
€101 million in FY 2023, compared to €87 million in FY 2022.
Development capex was down slightly at €33 million in FY 2023,
vs €36 million in FY 2022, back to a normalized level after high
levels experienced in 2022 and 2021. Equipment
capex was strongly up year-over-year at €44 million
in FY 2023, compared to €30 million in FY 2022, thanks to the
sustained level of Mail-Related Solutions hardware placements, as
well as the focus on deployment of open locker
networks. Maintenance capex is slightly down, at
€10 million. The increase in capex linked to IFRS 16 was
driven by new office leases.
All in all, cash flow after capital
expenditure was down to €64 million in FY 2023
compared to €70 million in FY 2022.
OPENING BALANCE SHEET ADJUSTMENTS
UPDATE
As disclosed in the H1 2023 results press
release(7), released on 20 September 2023, at the time of closing
the accounts for the first half of 2023, Quadient identified
accounting irregularities and practices that did not comply with
Group procedures and were attributable to Mail-Related Solutions’
Italian and Swiss subsidiaries.
The investigation, initiated by Quadient in
August 2023 in Italy and in Switzerland and conducted both
internally and with the support of recognized external experts, is
now completed. At the close of the FY 2023, the conclusions of this
investigation are as follows:
- Active
involvement of a few employees responsible for the management of
the Italian and Swiss Mail-Related Solutions subsidiaries,
- Containment of
these accounting irregularities to these local subsidiaries,
and
- Absence of any
material impact on the FY 2022 and FY 2023 income statements.
As a result of the investigation carried out,
the Group has recorded additional adjustments for €23 million to
the accounts of these local subsidiaries relating to previous
financial years and recognized in shareholders’ equity in the FY
2022 opening balance sheet (after the €29 million adjustment
recorded in H1 2023).
As the investigation is now closed, Quadient
does not anticipate any additional financial impact on its
historical financial statements. The Company has filed a criminal
complaint against those believed to be involved and continues to
reserve all rights in this matter.
In addition and considering the conclusion of
the investigation carried out in Italy and in Switzerland (notably
showing that the accounting adjustments impacted mostly the
accounts of the Italian subsidiary), the Group decided in January
2024 to review the future of its Mail-Related Solutions activity in
Italy and is engaged in the path of divesting this subsidiary
within the next 12 months. Consequently, the assets and
liabilities of this wholly owned subsidiary are presented in the
financial accounts for the year ending 31 January 2024 as assets
and liabilities held for sale as per IFRS 5. Its profit and
loss accounts and cash flow statements are presented as
discontinued operations. The FY 2022 financial statements
have been restated to reflect this decision.
LEVERAGE AND LIQUIDITY
POSITION
Net debt stood at
€709 million as of 31 January 2024, a decrease against the
€736 million of net financial debt recorded
as of 31 January 2023 and adjusted for the
aforementioned accounting corrections. In June 2023, the Group
renewed its Revolving Credit Facility for an amount of €300 million
with a new 5-year maturity. A €90 million stimulus participating
loan was also signed in June 2023. From October 2023 to January
2024, Quadient proceeded to a partial bond buy-back for a total
amount of €57 million generating a financial gain c.€2 million.
The Group has no significant debt
maturity before 2025, when its 2.25% bond
is maturing.
The leverage ratio (net
debt/EBITDA) decreased from
3.0x(3)
as of 31 January 2023 to
2.9x(3)
as of 31 January 2024. Excluding
leasing, Quadient leverage ratio improved from
1.8x(3) as of 31 January 2023 to
1.65x(3)
as of 31 January 2024, therefore
exceeding the 1.75x target set early 2021 for the
end of FY 2023.
As of 31 January 2024, the Group had a robust
liquidity position of
€418 million, split between €118 million
in cash and a €300 million undrawn credit line, the
latter maturing in 2028.
Shareholders’ equity stood at
€1,069 million as of 31 January 2024 compared to
€1,030 million(8) as of 31 January 2023 and adjusted for
the aforementioned accounting corrections. The gearing
ratio(9)
stood at 77.4% as of 31 January 2024.
OUTLOOK
FY 2023 marks the end of Quadient’s Back to
Growth strategic plan, with Phase Two covering the period
2021-2023. From a financial standpoint, the achievements are solid
with only a small deviation against the mid-term outlook set in
2021:
- Organic sales
CAGR for the 2021-2023 period was 2.5% in line with the 2.5%
mid-term outlook revised in November 2023 (initially set in
2021 at minimum 3% CAGR),
- Organic current
EBIT(2) CAGR(10)
was 3.3% over the 2021-2023 period against the minimum mid-single
digit organic current EBIT(2) CAGR that was set in
2021.
The end of the second phase of Back to Growth
also marks the completion of the portfolio rotation that had been
planned by Quadient early 2019 when the first phase of Back to
Growth was launched. Over the past five years, all non-core assets
have been sold or closed and important assets were acquired to
complement the Solutions of the Group. Quadient is now an
innovative and integrated B-to-B subscription platform, focusing on
powering billions of business transactions every day.
Quadient’s Solutions have achieved significant
milestones over the second phase of Back to Growth. For Intelligent
Communication Automation, the second phase of Back to Growth
was a phase of cloud transformation. First, on the product side, by
acquiring two SaaS financial automation modules (in 2020 and 2021
during phase one) to complete the cloud platform; this was followed
in FY 2023 by the launch of the Quadient Hub, an integrated cloud
platform combining all modules for Intelligent Communication
Automation. This innovative and integrated platform is an important
driver of additional usage and upsell. The various modules of the
Quadient Hub have received numerous leader rankings from external
surveys and analysts highlighting the quality of the offering and
its market leadership. The solid growth in ARR, which
delivered a 19% CAGR over the period, is the validation
from customers of the attractiveness of these solutions. Second,
from both a technological and financial standpoint, the Solution
has almost completed its move from on-premise licenses to SaaS,
temporarily impacting its revenue and profitability trajectory.
However, as the level of subscription-related revenue increased
(80% in FY 2023, vs. 61% in FY 2020), an inflexion point has also
been reached for the operating profitability in H2 2022. In FY
2023, the solution has been profitable at current EBIT
level(2)
and further improvement is expected in the years to
come.
Mail-Related Solutions have been
outperforming the market throughout the 2021-2023 period,
delivering a 0.6% organic revenue CAGR over the
period. Whilst the Solution was significantly impacted by
the Covid-19 crisis in terms of loss of revenues, the following
years have demonstrated resilience and the success of its strategic
choices to focus on re-investing in both its go-to-markets and its
smart equipment range. Throughout the second phase of the plan,
hardware sales showed strong dynamics, especially in the US that
benefited from the USPS decertification and the placement of new
generation of machines while the subscription related revenue
showed strong resilience over the period. Hardware sales
posted three consecutive years of organic growth. This
solid performance is also confirmed by the share
of upgraded installed base, moving from 4.9% at the end of
FY 2020 to 31.5% at the end of FY 2023 demonstrating the
sound adoption trend for the new products.
Lastly, the financial performance of Parcel
Locker Solutions reflects the increased strategic focus towards
open networks to drive higher returns per locker. Building on its
Japanese network experience, Quadient decided to focus its efforts
onto deploying new open networks of parcel lockers, notably in the
UK and France. This deployment is based on two major cornerstones:
i) strong relationships with international carriers bringing parcel
volumes into the networks thanks to long term agreements and ii)
ability to secure prime locations to install lockers and benefit
from the first mover advantage in the most attractive locations.
The initial volume ramp up seen in the existing networks is
encouraging. Innovation has also played a key part in the
development of the parcel locker offering. Significant new features
and models have been developed to respond to a wide range of use
cases. Oversize lockers for DIY shops, rear-loading lockers for
universities, larger configurations, or the award-winning drop box
to consolidate returns are a few of these innovative features. The
installed locker base has grown to over 20,000 lockers, a
55% increase vs. the end of 2020 level. This growth has
been also driven by a steady expansion of the locker base in the US
both in the universities and in the multifamily segments.
With the end of the Back to Growth strategy and
the Group firmly positioned on a sustainable and profitable
growth trajectory, the guidance for FY 2024 is for
another year of organic growth both at the revenue and current
EBIT(2)
levels.
Additional financial guidance, three-year
strategic focus and trajectory for the Group will be discussed at
Quadient’s Capital Markets Day planned for 19 June
2024.
Q4 2023 BUSINESS HIGHLIGHTS
Quadient surpasses €200 million in
Software Annual Recurring Revenue at the end of the third quarter
2023On 30 November 2023, Quadient announced it has reached
a significant milestone as its Software Annual Recurring Revenue
(ARR), a forward-looking indicator of future subscription revenue,
surpassed €202 million at the end of the third quarter of the 2023
fiscal year, started on 1 February 2023.
Quadient expands cloud-based Mail and
Shipping offer to mid and small businesses with S.M.A.R.T.
EssentialOn 4 December 2023, Quadient announced the
release of its latest intelligent, cloud-based mailing and
multicarrier shipping solution: S.M.A.R.T. Essential. This new
subscription-based solution brings Quadient’s S.M.A.R.T. mailroom
software, already a leading solution in large-sized company mail
centers, to mid-sized and small businesses.
Quadient’s Open Parcel Locker Network
Selected as Partner for UPS Access Point Expansion in the
UKOn 7 December 2023, Quadient is pleased to share that
UPS has selected its Parcel Pending by Quadient open locker network
as one of their partners for the expansion of its UPS Access Point®
network across the UK. The global package delivery leader has
recently announced it will be opening additional locations for
deliveries just in time for the holiday peak season.
Quadient integrates with Xero to
automate and streamline accounting for small and medium
enterprises.On 19 December 2023, Quadient announced a
strategic partnership in North America and the United Kingdom. Xero
integrates with Quadient’s Accounts Payable (AP) capabilities to
fully automate and streamline accounting processes. Xero is a
cloud-based accounting software for small to medium-sized
enterprises.
Quadient Announces Appointment of New
Chief Marketing Officer, Petra WolfOn 2 January 2024,
Quadient announced the appointment of Petra Wolf as new Chief
Marketing Officer, effective 2 January 2024.
With a professional journey spanning more than
20 years, Petra Wolf has excelled in senior management positions
within the spheres of B2B and B2C technology marketing. Her
seasoned expertise extends across various tech-related industries,
encompassing semi-conductors, server and client hardware,
consulting, and software development. Prior to joining Quadient,
Petra successfully steered Global Marketing for Small and Medium
Businesses at Amazon Web Services, where she demonstrated her
ability to identify and capitalize on market opportunities through
innovative sales and marketing strategies.
POST-CLOSING EVENTS
Quadient extends its footprint in
Europe, welcoming 30,000 new customers with the acquisition of
FramaOn 1 February 2024, Quadient announced the
acquisition of Frama, a significant mailing and document
management solutions provider to small and medium-sized businesses,
serving more than 30,000 customers, mostly in Europe.
Quadient’s Financial Automation Cloud
Offerings Named as Recommended Solutions by SageOn 6
February 2024, Quadient announced that its financial automation
cloud offerings for accounts receivable (AR) and accounts payable
(AP) are endorsed as “Recommended Solutions” by Sage, the leader in
accounting, financial, HR and payroll technology for millions of
small and mid-sized businesses.
Quadient’s Sustainable and Convenient
Parcel Locker Delivery and Pickup Solution Available in Over 20,000
Locations WorldwideOn 12 February 2024, Quadient announced
that it has reached a new milestone in its parcel locker network
expansion. At the end of January 2024, Quadient accounted for more
than 20,000 Parcel Pending by Quadient locker units in operation
across North America, Europe and Asia.
Quadient Positioned as Leader in 2024
SPARK Matrix for Customer Communications Management for Fourth
Consecutive YearOn 28 February 2024, Quadient announced
that it has been positioned as a Technology Leader in the SPARK
Matrix™: Customer Communication Management (CCM) 2024 research
report for the fourth consecutive year. The report, produced by
independent technology analyst firm Quadrant Knowledge Solutions,
provides a detailed analysis and strategic vendor performance
assessment of the global CCM market.
Growing Quadient Partner Program Extends
to CCM and Financial Automation Solutions to Support Wider Customer
EngagementOn 13 March 2024, Quadient is expanding its
Quadient Experience Partner Program to include the company’s
financial automation solutions. Previously focused on Quadient’s
CCM solutions, the new program brings more value to partners while
expanding the reach of Quadient’s cloud solutions’ rich features
and functions to more customers.
Quadient Partners with Stonegate Group
to Offer Convenient Parcel Pickup and Returns at 400 New Locations
Across the UKOn 19 March 2024, Quadient announced that
Stonegate Group – the UK’s largest pub company with a portfolio of
more than 4,500 managed, leased and tenanted sites, including
Yates, Slug and Lettuce, and Walkabout – has joined the Parcel
Pending by Quadient Open Locker Network as a host partner. Quadient
has already started rolling out its carrier-agnostic parcel
lockers, with an initial target of installing 400 locker units
across Stonegate’s 1,200 managed properties.
Bpifrance Investissement co-opted as an
independent director of QuadientOn 25 March 2024, Quadient
announced that the Board of Directors decided to approve the
co-option of Bpifrance Investissement as an independent member of
the Board of Directors, effective 22 March 2024. Bpifrance
Investissement will be represented by Emmanuel Blot, Investment
Director in Bpifrance Mid & Large Cap division.
Royal Mail offers new parcel drop off
and collection experience to consumers by adopting Quadient’s open
locker network in the UKOn 25 March 2024, Quadient
announced that Royal Mail, UK’s largest parcel delivery company,
has joined the Parcel Pending by Quadient Open Locker Network under
a multi-year contract. With the aim of offering a new customer
service and a great customer experience, Royal Mail will start
offering returns and outbound drop-off services in an initial
c. 200 sites by May 2024, with the expectation that Royal
Mail will ultimately use lockers in 3 000 locations as the UK
network grows in the coming years.
To know more about Quadient’s news flow,
previous press releases are available on our website at the
following address: https://invest.quadient.com/en/newsroom.
CONFERENCE CALL & WEBCAST
Quadient will host a
conference call and webcast today at 6:00 pm Paris time (5:00 pm
London time).
To join the webcast,
click on the following link: Webcast.
To join the conference
call, please use one of the following phone numbers:
▪ France: +33 (0) 1 70
37 71 66.
▪ United States: +1
786 697 3501.
▪ United Kingdom
(standard international): +44 (0) 33 0551 0200.
Password: Quadient
A replay of the
webcast will also be available on Quadient’s Investor Relations
website for 12 months.
CALENDAR
- 27 May 2024:
First quarter 2024 sales release (after close of
trading on the Euronext Paris regulated market).
- 14 June 2024:
Shareholders General Meeting
- 19 June 2024:
Capital Markets Day
About Quadient®
Quadient is the driving force behind the world’s
most meaningful customer experiences. By focusing on three key
solution areas, Intelligent Communication Automation, Parcel Locker
Solutions and Mail-Related Solutions, Quadient helps simplify the
connection between people and what matters. Quadient supports
hundreds of thousands of customers worldwide in their quest to
create relevant, personalized connections and achieve customer
experience excellence. Quadient is listed in compartment B of
Euronext Paris (QDT) and is part of the CAC® Mid & Small and
EnterNext® Tech 40 indices. Quadient shares are eligible for
PEA-PME investing.
For more information about Quadient, visit
https://invest.quadient.com/en/.
Contacts
Catherine Hubert-Dorel, Quadient+33 (0)1 45 36 30
56c.hubert-dorel@quadient.comfinancial-communication@quadient.com |
OPRG FinancialIsabelle Laurent / Fabrice Baron+33
(0)1 53 32 61 51 /+33 (0)1 53 32 61
27isabelle.laurent@oprgfinancial.frfabrice.baron@oprgfinancial.fr |
Caroline Baude, Quadient+33 (0)1 45 36 31
82c.baude@quadient.com |
|
APPENDIX
Q4 2023 consolidated sales
Q4 2023 consolidated sales by
Solution
In € million |
Q4 2023 |
Q4 2022 |
Change |
Organic change |
Intelligent Communication Automation |
66 |
61 |
+7.6% |
+7.2% |
Mail-Related Solutions(a) |
196 |
199 |
(1.6)% |
+0.3% |
Parcel Locker Solutions(a) |
22 |
25 |
(9.3)% |
(4.8)% |
Group total |
284 |
285 |
(0.3)% |
+1.4% |
(a) Mail-Related Solutions and Parcel Locker
Solutions have been restated to reflect the fact that they now
include activities previously accounted for in Additional
Operations. |
Q4 2023 consolidated sales by
geography
In € million |
Q4 2023 |
Q4 2022 |
Change |
Organic change |
North America |
160 |
157 |
+2.2% |
+4.9% |
Main European countries(a) |
97 |
97 |
+0.1% |
(1.8)% |
International(b) |
27 |
31 |
(14.3)% |
(6.7)% |
Group total |
284 |
285 |
(0.3)% |
+1.4% |
(a) Including Austria, Benelux, France, Germany,
Ireland, Italy (excluding MRS), Switzerland, and the United Kingdom
(b) International includes the activities of Intelligent
Communication Automation, Mail-Related Solutions and Parcel Locker
Solutions outside of North America and the Main European
countries |
Full-year 2023
Consolidated income
statement
In € million |
FY 2023(period ended on
31 January 2024) |
FY 2022 restated(period ended
on 31 January 2023) |
FY 2022 reported(period ended
on 31 January 2023) |
Sales |
1,062 |
1,071 |
1,081 |
Cost of sales |
(274) |
(286) |
(291) |
Gross margin |
788 |
785 |
790 |
R&D expenses |
(63) |
(57) |
(57) |
Sales and marketing expenses |
(275) |
(274) |
(277) |
Administrative and general expenses |
(176) |
(185) |
(186) |
Service and support expenses |
(109) |
(112) |
(114) |
Employee profit-sharing, share-based payments and other
expenses |
(7) |
(6) |
(6) |
Current operating income before acquisition-related
expenses |
157 |
151 |
150 |
Acquisition-related expenses |
11 |
10 |
(10) |
Current operating income |
147 |
140 |
140 |
Optimization expenses and other operating income &
expenses |
(15) |
(73) |
(73) |
Operating income |
132 |
67 |
67 |
Financial income/(expense) |
(31) |
(36) |
(36) |
Income before taxes |
101 |
32 |
31 |
Income taxes |
(17) |
(17) |
(16) |
Share of results of associated companies |
(0) |
1 |
1 |
Net income from continued operations |
84 |
16 |
16 |
Net income of discontinued operations |
(14) |
(0) |
0 |
Net income |
70 |
16 |
16 |
Minority interests |
1 |
3 |
3 |
Net attributable income |
69 |
13 |
13 |
Simplified consolidated balance
sheet
AssetsIn € million |
FY 2023(period ended on
31 January 2024) |
FY 2022 restated(period ended
on 31 January 2023) |
Goodwill |
1,082 |
1,080 |
Intangible fixed assets |
121 |
125 |
Tangible fixed assets |
156 |
150 |
Other non-current financial assets |
65 |
80 |
Leasing receivables |
598 |
595 |
Other non-current receivables |
2 |
5 |
Deferred tax assets |
17 |
18 |
Inventories |
67 |
83 |
Receivables |
228 |
220 |
Other current assets |
84 |
82 |
Cash and cash equivalents |
118 |
158 |
Current financial instruments |
2 |
3 |
Assets held for sale |
9 |
0 |
TOTAL ASSETS |
2,550 |
2,599 |
LiabilitiesIn € million |
FY 2023(period ended on
31 January 2024) |
FY 2022 restated(period ended
on 31 January 2023) |
Shareholders’ equity |
1,069 |
1,030 |
Non-current provisions |
12 |
13 |
Non-current financial debt |
715 |
730 |
Current financial debt |
66 |
114 |
Lease obligations |
46 |
50 |
Other non-current liabilities |
2 |
3 |
Deferred tax liabilities |
104 |
136 |
Financial instruments |
5 |
6 |
Trade payables |
79 |
81 |
Deferred income |
212 |
203 |
Other current liabilities |
225 |
234 |
Liabilities held for sale |
15 |
0 |
TOTAL LIABILITIES |
2,550 |
2,599 |
Simplified cash flow
statement
In €millions |
FY 2023(period ended on
31 January 2024) |
FY 2022 restated(period ended
on 31 January 2023) |
EBITDA |
244 |
240 |
Other elements |
(19) |
(17) |
Cash flow before net cost of debt and income
tax |
225 |
223 |
Change in the working capital requirement |
(6) |
(40) |
Net change in leasing receivables |
0 |
8 |
Cash flow from operating activities |
219 |
192 |
Interest and tax paid |
(55) |
(35) |
Net cash flow from operating activities |
165 |
157 |
Capital expenditure |
(101) |
(87) |
Net cash flow after investing activities |
64 |
70 |
Impact of changes in scope |
(5) |
3 |
Others |
(1) |
0 |
Net cash flow after acquisitions and
divestments |
58 |
73 |
Dividends paid |
(21) |
(21) |
Change in debt and others |
(38) |
(394) |
Net cash flow from financing activities |
(59) |
(415) |
Cumulative translation adjustments on cash |
(2) |
(3) |
Net cash from discontinued operations |
(8) |
2 |
Change in net cash position |
(11) |
(344) |
2022 figures have been restated to
reflect Mail-Related Solutions Italian subsidiary being
reclassified as discontinued operations in 2023 (as per IFRS
5)Organic change excludes currency and scope
effects(1) FY 2023 sales are compared to FY 2022 sales,
from which is deducted revenue from Graphics activities in the
Nordics and Shipping business in France and to which is added the
revenue of Daylight for a consolidated amount of €(4) million and
are restated for an amount of €25 million negative currency impact
over the period(2) Current operating income before
acquisition-related expenses(3) Including IFRS 16(4) FY 2023 ARR
was impacted by a €4.0 million negative currency effect vs. 31
January 2023(5) For the FY 2023, the average compounded number of
shares is 34,520,833(6) EBITDA = current operating income +
provisions for depreciation of tangible and intangible fixed
assets.(7) Click here to access H1 2023 press release, published on
20 September 2023(8) FY 2022 Balance sheet has been restated for a
total amount of €52 million linked to accounting corrections in
relation to accounting irregularities and practices that did not
comply with Group procedures in the Mail-Related Solutions Italian
and Swiss subsidiaries(9) Net debt / shareholders’ equity(10) Based
on 2020 current operating income before acquisition-related
expenses excluding Parcel Pending’s earn-out reversal, i.e.
€145 million, with a scope effect resulting in a
€140 million pro forma
QUADIENT (TG:NEQ)
과거 데이터 주식 차트
부터 8월(8) 2024 으로 9월(9) 2024
QUADIENT (TG:NEQ)
과거 데이터 주식 차트
부터 9월(9) 2023 으로 9월(9) 2024