(News Bulletin 247) – The electronic label specialist announced this Monday, December 23, an extension of its partnership with the American distribution giant which will deploy the French group’s solutions in the company’s approximately 4,600 American stores. The additional order intake corresponding to this amendment amounts to approximately 1 billion euros.

Christmas arrived a few days early for Vusiongroup. The electronic label specialist announced this Monday, December 23, an extension of its partnership with the American group Walmart, which will result in approximately 1 billion additional euros in order intake.

On the Paris Stock Exchange, the shares of the former SES-imagotag jumped 14.1% following this announcement, around 10:20 a.m.

After having equipped around 500 of its stores with “Edgesens” solutions (a system of connected rails for shelves which facilitates geolocation and the exchange of information between compatible Bluetooth devices, which allows for example to optimize the management of stocks) from Vusiongroup, Walmart has decided to move up a gear.

>> Access our exclusive graphic analyses, and gain insight into the Trading Portfolio

Significant visibility

The two groups have signed an agreement to extend the deployment of these solutions to all of Walmart’s approximately 4,600 stores in the United States. The additional order intake of around 1 billion euros corresponding to this signature will be included in the figures for the coming quarters, Vusiongroup said.

This offers appreciable visibility to the company insofar as its total revenues, in 2023, had reached just over 800 million euros, and the company is targeting a figure of around 1 billion euros in 2024, in adjusted data.

“We are delighted with the results of the first phase of deployment, and look forward to expanding it to new stores. Electronic labels are a transformative innovation for us by simplifying the daily lives of our teams in store and improving the experience of our customers,” Greg Cathey, Walmart vice president of transformation and innovation, said in a statement.

Strong growth

Vusiongroup initially signed a deployment contract with Walmart in April 2023. As part of this contract, the French company has issued share subscription warrants (BSA) that the American group can exercise subject to reaching thresholds for expenses incurred within the contract. The activation threshold was set at $700 million. From this figure, Walmart can exercise its BSAs in proportion to expenses for the benefit of Vusiongroup, 100% of the BSAs being exercisable if this amount of expenses reaches $3 billion.

In its universal registration document, Vusiongroup estimated that the threshold of $700 million would be reached sometime in 2024.

Vusiongroup recently announced a series of new contracts. The company notably indicated last week that it had been selected by The Fresh Market, an American food brand, to digitize all of their physical stores.

Stifel then spoke of a “small (less than 25 million euros in annual revenue, according to the design office) but promising” contract, because it could lead other stores to follow suit and adopt the “Vusion 360” solution. of society. The broker then took the opportunity to point out that Vusiongroup should be able to post average annual growth of more than 30% in its revenues over the next three years while improving its gross margin.