FINANCIAL PRESS RELEASE
Paris, France, June 6, 2018
2017/2018 Financial Result: EBITDA of 8.1% of revenue
Generix Group, Industrial, Logistical and Retail Ecosystems provider with leading Collaborative Software Solutions, issued today the results for its fiscal year 2017/2018 ended March 31, 2018.
Revenue growth at 12% - EBITDA: 8.1% (+ 3.6 points vs. N-1)
The Generix Group has been able to generate 12% growth in the 2017/2018 financial year, including 5% external growth, making it possible to reach revenue of 70.3 million euros through the development and evolution of its SaaS offering abroad, including the launch of the collaborative platform "Generix Supply Chain Hub".
| 12 months ended March, 31 | Variation | |||
| IFRS consolidated accounts, in millions of Euros | 2018 | 2017 | M€ | % |
| Revenues | 70,3 | 63,0 | 7,3 | 12% |
| Which licenses | 4,7 | 4,6 | 0,0 | 1% |
| Which maintenance | 18,8 | 17,6 | 1,3 | 7% |
| Which SaaS | 23,8 | 21,6 | 2,2 | 10% |
| Which Consulting Services | 23,0 | 19,3 | 3,8 | 20% |
| Operational expenses / other income from operations | - 67,4 | - 61,0 | - 6,5 | 11% |
| Profit (loss) from current operations | 2,9 | 2,0 | 0,8 | 41% |
| Other operational income and expenses | - 0,7 | - 0,6 | - 0,1 | 23% |
| Profit (loss) from operations | 2,2 | 1,5 | 0,7 | 47% |
| Financial expenses | - 0,5 | - 0,3 | - 0,1 | 38% |
| Profit (loss) before income taxes | 1,7 | 1,1 | 0,6 | 50% |
| Income taxes benefit | - 0,5 | - 1,1 | 0,6 | - 55% |
| Net result after tax | 1,2 | 0,0 | 1,2 | 2603% |
| Net result | 0,6 | - 0,2 | 0,7 | 411% |
| 12 months ended March, 31 | Variation | |||
| EBITDA in millions of euros | 2018 | 2017 | M€ | % |
| Revenues | 70,3 | 63,0 | 7,3 | 12% |
| Other income from operations | 2,1 | 1,7 | 0,4 | 27% |
| Cost of goods sold | - 0,8 | - 1,0 | 0,2 | -19% |
| Other purchases and external expenses | - 21,9 | -20,7 | - 1,2 | 6% |
| Taxes and similar payments | - 1,7 | - 1,7 | - 0,0 | 1% |
| Personnel costs | - 40,0 | -36,1 | - 3,9 | 11% |
| Other expenses on operations | - 1,3 | - 0,6 | - 0,7 | 123% |
| Reversals of used provisions during the period | - 0,2 | -0,4 | 0,2 | -46% |
| Capitalized production | - 0,7 | - 1,4 | 0,6 | -46% |
| EBITDA (1) | 5,7 | 2,9 | 2,8 | 99% |
(1) EBITDA = current operating income + net provisions on current assets + net provisions for risks and charges + depreciation on fixed assets - capitalized production costs.
The group posted EBITDA of 8.1% of revenue (€5.7 million) for the year, an increase of 3.6 points compared to the previous financial year due to:
- 2 points by Generix Group North America entering the scope of activity on October 3, 2016 (impacting 12 months in 2017/2018 versus 6 months in 2016/2017);
- 1.6 points in organic profit growth, the result of growth in a context of stabilization of operating expenses for sales & marketing.
At Group level, the net impact of the activation of software development costs and net depreciation and provisions amounts to -€ 2.8 million compared to -€ 0.8 million as at March 31, 2017. The change in these posts had no impact on cash flow, mainly related to the cost of software development, less depreciation (-€ 1.0 million) and net provisions on current assets (- € 0.5 million). Current operating income nevertheless amounted to €2.9 million, up 41%.
Other operating expenses and income, of -€ 0.7 million, correspond to the initial price supplement paid in connection with the acquisition of Generix North America. As a reminder, the operating expenses of the previous fiscal year corresponded to acquisition-related expenses.
After considering the financial result and the tax effect, net profit amounted to €1.2 million, a clear improvement over the previous year.
Net debt and cash flow
| 12 months ended March, 31 | Variation | |||
| Net debt, in millions of Euros | 2018 | 2017 | M€ | % |
| Cash and cash equivalents, end of period | 6,2 | 6,9 | - 0,7 | - 10% |
| Short-term and long-term portions of financial obligations | - 13,4 | - 13,2 | - 0,3 | 2% |
| Net debt | - 7,2 | - 6,2 | - 1,0 | 16% |
| 12 months ended March, 31 | Variation | |||
| Consolidated statements of cash flows, in millions of Euros | 2018 | 2017 | M€ | % |
| Net income adjusted by non-cash items | 3,9 | 2,5 | 1,4 | 57% |
| Change in working capital | - 1,3 | 1,7 | - 3,0 | - 177% |
| Net cash by operating activities | 2,6 | 4,2 | - 1,6 | - 38% |
| Net cash used in investing activities | - 2,8 | - 8,1 | 5,3 | - 66% |
| Free cash flow | - 0,2 | - 3,9 | 3,7 | - 95% |
| Net cash by financing activities | - 0,5 | 5,3 | - 5,8 | - 110% |
| Net increase in cash and cash equivalent | - 0,7 | 1,5 | - 2,2 | - 148% |
| Cash and cash equivalent, end of period | 6,2 | 6,9 | - 0,7 | - 10% |
Cash flow for the fiscal year 2017/2018 was primarily characterized by:
- Improved profitability;
- Working capital requirements related to growth;
- Net investment flows of financing close to the previous year and mainly impacted by the acquisition and financing transactions on Generix Group North America.
Prospects
Performance recorded over the past year allows the Group to consider continuing its momentum of revenue and profitability growth for the 2018/2019 financial year.
Supplemental and non-IFRS Financial Information
Supplemental non-IFRS information (above-mentioned as EBIDTA or net debt) presented in this press release are subject to inherent limitations. It is not based on any comprehensive set of accounting rules or principles and should not be considered as a substitute for IFRS measurements. Also, the Company's supplemental non-IFRS financial information may not be comparable to similarly titled non-IFRS measures used by other companies.
Next financial press release: July 30, 2018, after closing of the stock exchange
Release of first quarter revenues for the fiscal year 2018/2019
About Generix Group
Generix Group is a Collaborative Supply Chain expert present in more than 60 countries, thanks to its subsidiaries and network of partners. 6,000 companies around the world use its SaaS solutions. The group's 550 employees provide daily support for such customers as Carrefour, Danone, FM Logistic, McKesson, Bic, Essilor, Bic and Ferrero in the digital transformation of their Supply Chain.
Its collaborative platform, Generix Supply Chain Hub , helps companies to keep the promises they make to their customers. It combines the capabilities to execute physical flows, digitalize information flows, manage collaborative processes and connect companies to all their partners, in real time.
Generix Supply Chain Hub is aimed at all players in the Supply Chain: manufacturers, third and fourth-party logistics providers (3PL/4PL) and retailers.
Founded in France in 1990, the company is listed on the Eurolist market of Euronext Paris, compartment C (ISIN: FR0004032795). To learn more: www.generixgroup.com
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