Cegedim H1 2026: Revenue Growth Slips but Profit Rises Amid Cost Cuts

Cegedim reported a year-over-year rise in adjusted profit for the first half of 2026, despite revenue growth remaining modest, as the integrated healthcare services group tightened costs and leveraged operational efficiencies. Revenue climbed by 0.7% in reported terms to EUR 324.8 million, a 0.8% like-for-like increase of EUR 2.3 million, though second-quarter performance outpaced the first by EUR 4 million after a EUR 1.7 million decline in Q1. Adjusted operating income rose by EUR 1.2 million to EUR 19.7 million, marking a 6.9% increase and an operating margin of 6.1%, up from 5.7% in H1 2025. Adjusted EBITDA grew 1.3% to EUR 62.0 million, with an EBITDA margin of 19.1%, a slight uptick from 19.0% the prior year. Net income attributable to the group surged to EUR 5.4 million from EUR 1.2 million, a 333% year-over-year increase, while operating free cash flow rose to EUR 58.9 million from EUR 56.6 million. Net debt decreased by EUR 31.4 million to EUR 150 million, a 17% year-over-year reduction, while capital expenditures on tangible assets climbed 43.6% to EUR 52.0 million. Payroll costs fell by EUR 1.5 million, a 0.8% improvement, and non-recurring items—including a EUR 2.4 million charge—were significantly lower than the EUR 9 million burden in H1 2025, which included a EUR 7.4 million redundancy scheme in French pharmacy software. Tax paid was negative EUR 4.7 million, reflecting a final payment of EUR 4.1 million tied to a tax audit. The company expects EUR 4 million in H2 subsidies under France’s Ségur healthcare program. Headcount reductions totaled 113 employees, a 1.7% decrease, driven largely by offshore operations where staff make up about 28% of the workforce. The Healthcare Professional Unit, however, faced a EUR 5.1 million loss due to legacy solution churn, rising R&D amortization, and investments in the Maiia suite and AI-driven tools like Voca and Claude Bernard IA. Business Services saw adjusted operating income rise by EUR 2.7 million to EUR 14.9 million, with a 15.6% margin, benefiting from new HR contracts and France’s e-invoicing reform. The Pharmacy segment improved from a EUR 8.7 million loss to EUR 6.8 million, while Data & Marketing’s adjusted income fell to EUR 6.1 million from EUR 9.2 million, impacted by Spain’s Cegedim-MEDIA España launch and European data warehouse compliance costs. Cloud & Support operations were hit by an outsourcing contract termination and a challenging comparison basis. Shares fell 2.55% to $11.48, closing at $11.78, within a 52-week range of $8.5 to $15.3. Market capitalization stood at $180 million, with a trailing P/E ratio of 16.8. Management highlighted AI integration as central to productivity gains and client-facing innovations, while emphasizing cost control on external expenses and payroll. Full-year like-for-like revenue growth is projected above 2%, with an EPS target of $1.33.