March 30, 2020

Quadient records 4.7%-growth in annual sales (+1.6% organically) and current EBIT of €185 million, in line with the indications

Liquidity position of €900 million of cash and undrawn credit facility line, without major debt repayment scheduled in the coming 12 months

  • 2019 full-year sales of €1,143 million, up by 4.7 %, i.e. up 1.6 %[1] organically
  • Fourth-quarter sales up by 2.6%, i.e. up 0.2%[2] organically
  • Full-year current EBIT[3] at €185 million
  • Net attributable income at €14 million, impacted by the goodwill impairments associated to non-strategic activities within Additional Operations
  • Decrease in net debt of  €30 million (excluding IFRS 16 impact)
  • Cash flow after capex conversion rate of 50.3%[4]
  • Decision regarding dividend related to 2019 to be taken by the end of May 2020

Outlook

Taking into account fast developments in the Covid-19 pandemic and the uncertain economic context for the coming months, Quadient:

  •  is not in position to give any indications for the 2020 financial year as of today;
  • implemented measures to adapt the operations on a case by case basis while maintaining continuity of service;
  • benefits from a strong liquidity position at the end of January 2020: €498 million in cash and €400 million of undrawn credit line facility;
  • suspends the indications given up to 2022 as part of the Back to Growth plan

 

Paris, March 30, 2020

Quadient, a leader in business solutions for meaningful customer connections through digital and physical channels, today announced its consolidated results for 2019 (closed on January 31, 2020). These financial statements were reviewed and approved by the Board of Directors at its meeting on March 27, 2020.

Geoffrey Godet, Chief Executive Officer of Quadient, commented: « Quadient recorded a solid performance in 2019, compared with the trends observed in our markets. This performance validates the strategic choices made as part of our “Back to Growth” plan and our execution discipline. Helping to digitalize business processes, improve customer experience through omnichannel communication and automating last mile delivery are at the heart of our value proposition. Now operating as an integrated company enables us to further benefit from synergies across our solutions, better leverage our sales organization, optimize our shared services and back offices, as well as mutualize our R&D and marketing efforts.

To face the current health crisis, we have quickly adapted our organization focusing in priority on our teams’ health and safety as well as ensuring that we best support our customers and partners. In this uncertain environment, the Group benefits from a highly resilient business model. Our balance sheet is extremely sound, our debt being backed by future cash flow from our leasing and rental portfolio. Default payment risk is limited thanks to a large and well-diversified customer base. Lastly, we have a strong €900 million liquidity position with hardly any debt repayment scheduled within the next 12 months. Some measures aimed at reducing our cost base are already in place and could eventually be intensified according to the evolution of the situation. We are also conducting a thorough review of our investment decisions. We are confident that Quadient’s agility and financial strength will prove to be strong assets to operate in this difficult environment and be prepared for the recovery.”



[1] 2019 sales are compared to 2018 sales to which is added revenue from Parcel Pending for an amount of €25.9 million and deducted revenue from Satori Software and Human Inference for a total amount of €21.6 million, and are restated of a €29 million favorable currency impact over the period.

[2] Q4 2019 sales is compared to Q4 2018 sales to which is added revenue from Parcel Pending for an amount of €6.9 million and deducted revenue from Satori Software and Human Inference for a total amount of €5.2 million , and are restated of a €6 million favorable currency impact over the period..

[3] Excluding acquisition related expenses.

[4] Cash flow after capex excluding non-recurring items linked to the non-recurring expenses of the refinancing and the resolution of a tax litigation, divided by current operating income before acquisition-related expenses