“Today we are announcing another year of profitable growth and it is particularly satisfying to note that all Group divisions contributed in their respective manners to this success. With 21% growth at constant exchange rates and EBITDA nearly doubling, Claranova has again demonstrated its ability to adapt and develop. The first few weeks of FY 2021-2022 were marked by a worldwide reversal of online traffic growth in the post-COVID environment, amplified by the impact of technological changes to Apple’s app tracking features. For the first time in five years, these two exceptional market developments will have a negative impact on PlanetArt’s growth, without however calling into question the relevance of our offerings and our business models over the long term. We thus remain confident in the PlanetArt’s ability to very soon get back on its path to growth”, commented Pierre Cesarini, Chairman & CEO of the Claranova group.
Claranova ended FY 2020-2021 (July 2020-June 2021) with €472 million in revenue and confirmed the growth potential of its business portfolio with a 21% increase in consolidated revenue (+14% like-for-like). Group growth remained strong during the last fiscal year within a complex health environment that was overall positive for technology companies.
This growth was accompanied by a significant increase in operating profit which nearly doubled in FY 2020-2021, bolstered by the performances of all the Group’s divisions. On that basis, Claranova’s main operating performance indicator, EBITDA, rose to €34 million (+96%), or 7.2% as a percentage of revenue, up from 4.3% in the prior period.
As anticipated as soon as September 2020, this positive trend for EBITDA includes the conversion of aid provided by the US government in FY 2019-2020 under the Paycheck Protection Program (PPP) to selected US subsidiaries for an amount totaling nearly US$5 million into grants.
Following the improvement in the operating profit of its businesses, the Claranova’s financial profile was strengthened with Net Income of €14 million for the year compared to €1 million in FY 2019-2020, the first year the Group registered a profit since initiating its transformation in 2015.
Finally, the cash position continued to strengthen and stood at €90 million at the end of June 30, 2021 (+9%). Highlighting the good health of Claranova’s business portfolio, this increase was driven mainly by cash flow from operations before changes in net working capital, which rose to €29 million, up from €14 million in the prior period.