“During FY 2021-2022, our Group remained on track as revenue reached record levels in a particularly complex economic environment. Each of our businesses is performing well and is demonstrating its resilience. PlanetArt’s teams are continuing to explore new customer acquisition channels and we are already starting to see the first benefits of these efforts. And although these measures temporarily weighed on the division’s margins, they have already contributed to revenue growth higher than that of our competitors and reinforce our confidence in PlanetArt’s outlook for renewed growth.
Like all companies, we have not escaped the impact of inflation on production costs. However, the Group has reaped the benefits of Avanquest’s successful transformation to subscription-based software sales business model offering recurring revenue streams and longer-term visibility. On this basis, the division’s revenue exceeded €100m for the year, while EBITDA rose 20% over the last 12 months. This division contributed for 45% of Group EBITDA, confirming the relevance of Claranova’s multi-sector offer.
Similarly, the IoT business has continued to build momentum as new commercial deployments confirm the growing interest in this technology of the future, which remains a growth driver for the Group.
I continue to be firmly convinced in the fundamental strengths and potential of each of our subsidiaries. That is why I believe that today’s share price does not reflect Claranova Group’s fundamentals and growth prospects and for that reason I intend, together with other managers of the Group, to increase our stake in Claranova’s capital”
Pierre Cesarini, Chairman-CEO of Claranova.
Claranova reported today revenue for FY 2021-2022 (July 2021-June 2022) of €474m, up 1% at actual exchange rates and down 5% at constant exchange rates (-7% like-for-like).
In an unprecedented economic context that worsened in the second half, like other companies, the Group was impacted by a rise in cost prices caused by increased marketing investments reflecting higher customer acquisition costs as well as the effects of inflation on transport costs and raw materials.
However, EBITDA remains solid at €26m for the year, compared to €29m last year, after restating the €4.3m COVID-19 relief aid received by the US divisions during the pandemic period (Paycheck Protection Program). The latter also benefited from the growth of the Avanquest and myDevices divisions, whose revenues rose by 20% and 33% over the year to €102m and €5m respectively.
Higher financial expenses (+€15m), reflecting mainly the accounting amortization of the OCEANES convertible bonds issued in connection with the buyout of minority interests in the Avanquest division, weighed on net income, which mechanically registered a loss of €10m for the year. However, this €10m accounting amortization will not result in any cash outflow for the Group.
As a result, cash and cash equivalents amounted to €100.3m on June 30, 2022, with a solid cash flow from operations of €26m and net cash flow from operating activities at the same level as last year, i.e. €18m. With financial debt of €172m, net debt on June 30, 2022 came to €71m.
This year of transition has confirmed the relevance of the Group’s diversified approach dating from Claranova’s creation, whereby a weaker performance by one of its activities (PlanetArt) can be offset by the growth of another division (Avanquest).
Claranova’s top priority continues to be PlanetArt’s return to growth by rebuilding its customer acquisition channels and optimizing its cost base, while leveraging the positive momentum of the Avanquest and myDevices divisions to put the Group back on track for sustainable growth and increased profitability.
