(News Bulletin 247) – The group confirms that it is targeting one billion euros in revenue in 2024 after publishing 2023 accounts that are higher than expectations. The former SES-imagotag has revealed positive cash flow generation, which allows it to reactivate its shareholder return policy that has been dormant for more than a decade.

Vusion Group, the new name of SES-imagotag since last January, took the initiative of bringing forward to Wednesday evening the publication of its annual accounts, initially scheduled for the following evening, i.e. the day before a closed day on the Stock Exchange. Paris (Good Friday).

This one day delay is rather a harbinger of good news. Indeed, the world number one in digital solutions for physical commerce delivered “solid 2023 results” according to the analysis of the Stifel bank. These results, above expectations, illustrate the latest commercial successes achieved in the United States, and in particular its historic contract with Walmart in April 2023.

On the Paris Stock Exchange, Vusion Group is celebrating. At the top of the SBF 120, the title of the world number one in digital solutions for physical commerce soared by 17.3% to 150.60 euros, around 12:50 p.m.

In 2023, Vusion Group revealed gross operating income (Ebitda) up sharply by 80% year-on-year, to 106 million euros in adjusted data compared to 58.6 million euros previously. Above all, this level of Ebitda is 6 to 7% higher than the expectations of Stifel, which was counting on an indicator of 100 million euros and the consensus cited by the research office (99 million euros).

The corresponding margin is also increasing, standing at 12.8% of a turnover already published, up 29% to 802 million euros. In 2022, the Ebitda margin stood at 9.4%, an increase of 3.4 points in one year.

First dividend since 2012

Vusion Group attributes this improvement in its profitability to an increase in the margin rate on variable costs to 25.2% at the end of December 2023 compared to 21.2% in 2022. The company benefited from a return to normal in component prices electronics and manufacturing costs, which made it possible to increase the margins generated by the sale of electronic labels.

On value-added services (software, services and solutions excluding electronic labels), the company benefited from an increase in purchasing volumes and an improvement in its portfolio of value-added solutions with the acquisitions of Belive and Memory at the start of 2023.

A little further down in the accounts, adjusted net profit is up sharply to 79.6 million euros. Above all, the French group reported positive free cash flow for the year 2023, at 157.4 million euros compared to -24.7 million euros last year, thanks to significant deposits received from Walmart, specifies Stifel.

Here too, free cash flow is higher than the consensus cited by Oddo BHF at 68 million euros. The evolution of free cash flow is a “satisfaction factor”, also appreciated by the design office.

The year 2023 ends for Vusion Group with a positive net cash position of +27.3 million euros, an improvement of 67.7 million euros compared to the net debt position of -40.5 million euros at the end of 2022.

The company will therefore propose the payment of a dividend of 0.30 euros for the year 2023. If this amount seems anecdotal, it is above all carrying a strong symbol. This is the first dividend paid by the company since 2012, since the arrival of Thierry Gadou at the helm of the company. The last trace of a return to shareholders dates back to the end of June 2012, with a dividend of 0.5 euros paid for the year 2011. The company was then called Store Electronic Systems.

“We are very happy to be able to inaugurate this practice and intend to perpetuate it over time,” declares Thierry Gadou in a press release.

“In this sense, the dividend is symbolic but nevertheless reveals the evolution of the group towards a model that is now profitable and above all cash-generating”, appreciates Oddo BHF for its part.

“Solid” forecasts

For the year 2024, Vusion Group anticipates continued strong growth, particularly driven by the acceleration of its activity in the United States, as well as an increase in its profitability.

The group still aims to cross the milestone of one billion euros in turnover in 2024, on the basis of “an order book at an all-time high”. Stifel indicates that this objective corresponds to growth of +24%, and specifies “that turnover in the United States should be multiplied by three”.

“The United States will unsurprisingly drive growth and compensate for the end of the Lidl deployment in the EMEA zone (expected to decline in 2024)” (in other words the Europe, Middle East and Africa zone), suggests Oddo BHF.

Vusion Group anticipates robust growth in order intake in 2024. Finally, the group aims to continue improving its profitability with an adjusted Ebitda margin expected to grow by 0.5 to 1 percentage point in 2024. This which reflects, according to Stifel, a margin of around 14% (compared to 13.2% in 2023), and therefore an Ebitda of around 140 million euros in line with the consensus.

For 2024, Oddo BHF expects a turnover of 1.025 billion euros (an increase of 28% over one year) for an adjusted Ebitda of 143 million euros, reflecting a margin of 14%.

Vusion Group is also aiming for “always positive” cash flow, and says it is confident in the financing of its Vusion-27 strategic plan.

“For the first time in its history, the company has published very detailed forecasts for 2024, thus offering very high visibility for the year to come”, appreciates Stifel, which remains at the purchase on the file with an objective of 190 euros.

Oddo also notes this effort, since here “Vusion did not commit to an Ebitda objective at the start of the financial year, which demonstrates very good visibility on the activity and also greater maturity in the business model”. The research office raised its target price to 185 euros against 173 euros previously, and also renewed its opinion of outperformance.