Quadient reports solid nine-month 2021 sales performance and
expects strong commercial momentum to continue into the fourth
quarter
Key
highlights
-
Consolidated sales of
€752 million
in 9M 2021,
reflecting an organic growth of
+7.2%1 compared to
9M 2020
-
Q3 2021 sales of
€248 million, almost stable on an organic basis
(-0.3%2) versus Q3 2020;
- Good
revenue performance across all solutions in 9M 2021:
-
Intelligent Communication
Automation: Strong double-digit organic3
growth in subscription-related revenue (+20.1%) and 2,000+ new
customers gained across all solutions
-
Mail-Related Solutions: Strong
recovery in hardware sales (+17.6%) leading to positive organic3
revenue growth in all geographies, significantly outpacing
competition
- Parcel
Locker Solutions: Sales up 22.5%
organically3, driven by a double-digit growth in
subscription-related revenue and hardware sales; 2,200+ new lockers
deployed, expanding the installed base to 15,100+ units
- Successful
issuance of a €270 million new Schuldschein private
placement
Updated 2021
outlook
- With a backlog
at the highest level of the year at the end of 9M 2021 and
solid bookings expected across all solutions in Q4 2021, as
planned, but considering the current supply chain tensions,
Quadient now expects for full-year 2021:
- Organic sales
growth around 4% (versus above 4% previously)
- Current EBIT4
organic5 growth around 5-6% (versus above 6% previously)
- 2021-2023
guidance on both sales and current EBIT4 organic5 CAGR
confirmed
Paris, 7 December 2021,
Quadient (Euronext Paris: QDT),
a leader in business solutions for meaningful customer connections
through digital and physical channels, announced today its 2021
third-quarter and nine-month consolidated sales.
Geoffrey Godet, Chief Executive Officer of
Quadient, stated:
“As
expected, after a strong first
half of the year,
third-quarter
organic sales growth
was stable due to a much higher
base of comparison. Our software business
performance was strong, with more
than 800 net new customers gained in the third
quarter, an accelerated growth in annual recurring
revenue and a sustained increase
in the use of our cloud
platforms. Our
resilient mail-related business
continued outpacing competition
thanks notably to the successful
placement of our new generation
product line. As evidenced by the
600 new units installed in the third quarter alone, our
parcel locker business
continued to benefit from
a sustained rollout across all
verticals, a fast scaling of our open
networks as well as from the
success of our Lite lockers.
Looking at
the end of our fiscal year, we
expect solid bookings across all solutions
in the fourth quarter, as planned. We also see a strong pipeline of
large tenders in our parcel locker business across
all regions. Even with the highest level
of backlog of the year at the end of the third quarter, we
are managing increasing
supply chain tensions
in hardware
equipment due to lower availability of
components and shipping
delays. These supply chain
tensions are expected to
have a slight impact on
our full-year 2021 results.
We expect to deliver a strong
2021 performance, with around 4% organic sales
growth and around
5-6%
current EBIT
organic growth, still
better than what we had anticipated at the beginning of the
year.”
***
9M 2021
SALES REVIEW
Consolidated sales amounted to
€752 million in the first nine months of 2021, up 1.2%
compared to the first nine months of 2020. Excluding currency
impact and changes of scope6, organic growth stood at 7.2% in
9M 2021.
Change in
9M 2021
sales
In million euros |
9M 2020 |
9M 2021 |
Change |
Change at constant rates |
Organic change |
Major Operations |
666 |
689 |
+3.5% |
+6.2% |
+5.8% |
Intelligent Communication Automation (a, b) |
133 |
147 |
+10.5% |
+12.0% |
+9.8% |
Mail-Related Solutions (b) |
480 |
481 |
+0.2% |
+2.8% |
+2.8% |
Parcel Locker Solutions |
53 |
62 |
+16.0% |
+22.5% |
+22.5% |
Additional Operations |
77 |
62 |
-19.2% |
-19.4% |
+26.8% |
Group total |
743 |
752 |
+1.2% |
+3.6% |
+7.2% |
In million euros |
9M 2020 |
9M 2021 |
Change |
Change at constant rates |
Organic change |
Major Operations |
666 |
689 |
+3.5% |
+6.2% |
+5.8% |
North America |
366 |
378 |
+3.0% |
+7.9% |
+7.1% |
Main European countries (c) |
262 |
274 |
+4.3% |
+3.8% |
+3.8% |
International (d) |
37 |
38 |
+2.6% |
+5.9% |
+5.9% |
Additional Operations |
77 |
62 |
-19.2% |
-19.4% |
+26.8% |
Group total |
743 |
752 |
+1.2% |
+3.6% |
+7.2% |
(a) Intelligent Communication Automation gathers
Business Process Automation and Customer Experience Management
activities formerly presented within Major
Operations.(b) Product reclassification from Intelligent
Communication Automation to Mail-Related Solutions in
2020.(c) Including Austria, Benelux, France, Germany,
Ireland, Italy, Switzerland and the United
Kingdom.(d) International includes the activities of
Parcel Locker Solutions in Japan and of Customer Experience
Management outside of North America and the Main European
countries. |
Major Operations
Major Operations revenue stood
at €689 million (92% of total sales) in the first nine months
of 2021, up 5.8% on an organic basis compared to the first nine
months of 2020.
As a reminder, Quadient’s strategy is to promote
subscription-related revenue across all its solutions, in
particular through SaaS7 software subscriptions as well as
equipment rental and leasing.
Subscription-related revenue (70% of Major
Operations sales) increased by 3.2% organically versus
9M 2020, while license and hardware sales were up 12.7% and
revenue from professional services grew by 8.6%.
North America (55% of Major
Operations sales) delivered a sustained revenue performance in
9M 2021 (+7.1%), driven by the strong rebound of Mail-Related
Solutions in H1 2021 and double-digit organic sales growth
across Intelligent Communication Automation and Parcel Locker
Solutions businesses.
Main European countries (40% of
Major Operations sales) benefited from an improved level of
activity in 9M 2021 (+3.8%).
The International segment (5%
of Major Operations sales) reported a solid revenue performance in
9M 2021 (+ 5.9%), mainly driven by Parcel Locker Solutions in
Japan.Intelligent Communication Automation
Intelligent Communication
Automation revenue stood at €147 million (21% of
Major Operations sales) in 9M 2021, up 9.8% on an organic
basis compared to 9M 2020.
Intelligent Communication Automation customer
base grew rapidly in 9M 2021, with over 2,000 net new
customers gained in the period across all software solutions. This
reflects in particular a strong contribution from cross-selling
into Quadient’s SMB customers generated by the Mail-Related
Solutions sales force.
Subscription-related revenue were up by 20.1%
organically compared to 9M 2020, reflecting a growing customer
demand for cloud-based solutions, with double-digit sales increases
across both SMBs (+30%, including a +69% organic growth in revenue
from Accounts Receivables (AR) and Accounts Payables (AP)
automation solutions) and large accounts (+13%).
As a result, the contribution of
subscription-related revenue to Intelligent Communication
Automation sales further expanded in 9M 2021, at c.67%, up
from c.60% in 2020, underscoring the accelerated shift to SaaS.
Professional services experienced a good level
of activity in 9M 2021 (+6.7%), while perpetual license
revenue were sharply lower versus 9M 2020 (-20.5%) due to
ongoing shift in business model to SaaS subscriptions, in line with
the Group’s strategy.
Mail-Related Solutions
Mail-Related Solutions revenue
stood at €481 million (70% of Major Operations sales) in
9M 2021, up 2.8% on an organic basis compared to 9M 2020.
Sales recorded positive organic growth across all geographies,
outpacing competition, including a strong performance in North
America.
Subscription-related revenue (72% of
Mail-Related Solutions sales) decreased by 2.1% organically versus
9M 2020, reflecting the overall good resilience of the
installed base.
License and hardware sales grew double-digits in
9M 2021 (+17.6%), primarily benefiting from the strong
recovery of H1 2021, thanks to a good traction in new customer
acquisitions, while the level of bookings continued to be good in
Q3 2021. However, the backlog was at the highest level of the
year at the end of 9M 2021 due to supply chain tensions.
Otherwise, the share of new generation smart
devices further expanded, at 11.3% of the installed base at the end
of 9M 2021, up from 4.9% at the end of 2020.
Parcel Locker Solutions
Parcel Locker Solutions sales
stood at €62 million (9% of Major Operations sales) in
9M 2021, up 22.5% on an organic basis compared to
9M 2020, benefiting from a dynamic customer demand in all
verticals – from carriers to retail and from property managers to
education campuses and corporate offices.
Compared to the end of 2020, Quadient’s
installed base increased by over 2,200 units to reach more
than 15,100 parcel lockers at the end of 9M 2021.
Subscription-related revenue (57% of Parcel
Locker Solutions sales) increased by 19.6% organically versus
9M 2020, thanks to the expansion of the installed base in
North America in 2020 and an increase in usage rate.
License and hardware sales grew double-digits in
9M 2021 (+26.1%), reflecting a strong H1 2021 performance
that benefited from the dynamism of the retail sector in North
America thanks to the Lowe’s contract (US rollout completed in
Q1 2021 and extension into Canada in Q2 2021), and
despite a high comparison basis in Q3 2020 (start of the
Lowe’s US rollout). However, the North American backlog was at the
highest level of the year at the end of 9M 2021 due to supply
chain tensions.
Additional Operations
Additional Operations revenue
stood at €62 million (8% of total sales) in in the first nine
months of 2021, up 26.9% on an organic basis compared to in the
first nine months of 2020. This mainly reflected increased sales of
Automated Packing Systems in the first half (the APS business was
divested end July 2021).
Q3 2021 SALES REVIEW
Consolidated sales amounted to
€248 million in the third quarter of 2021, down 3.8% compared
to the third quarter of 2020. Excluding currency impact and changes
of scope8, sales were almost stable on an organic basis in
Q3 2021 (-0.3%).
Change in Q3 2021
sales
In million euros |
Q3 2020 |
Q3 2021 |
Change |
Change at constant rates |
Organic change |
Major Operations |
229 |
232 |
+1.1% |
+0.1% |
-0.4% |
Intelligent Communication Automation (a, b) |
46 |
51 |
+10.0% |
+8.5% |
+6.1% |
Mail-Related Solutions (b) |
161 |
160 |
-0.6% |
-1.8% |
-1.8% |
Parcel Locker Solutions |
22 |
21 |
-4.4% |
-4.1% |
-4.1% |
Additional Operations |
29 |
16 |
-43.4% |
-44.3% |
+0.9% |
Group total |
258 |
248 |
-3.8% |
-4.9% |
-0.3% |
In million euros |
Q3 2020 |
Q3 2021 |
Change |
Change at constant rates |
Organic change |
Major Operations |
229 |
232 |
+1.1% |
+0.1% |
-0.4% |
North America |
127 |
128 |
+0.2% |
-1.1% |
-1.9% |
Main European countries (c) |
89 |
91 |
+1.8% |
+0.7% |
+0.7% |
International (d) |
12 |
13 |
+6.3% |
+7.3% |
+7.3% |
Additional Operations |
29 |
16 |
-43.4% |
-44.3% |
+0.9% |
Group total |
258 |
248 |
-3.8% |
-4.9% |
-0.3% |
(e) Intelligent Communication Automation gathers
Business Process Automation and Customer Experience Management
activities formerly presented within Major
Operations.(f) Product reclassification from Intelligent
Communication Automation to Mail-Related Solutions in
2020.(g) Including Austria, Benelux, France, Germany,
Ireland, Italy, Switzerland and the United
Kingdom.(h) International includes the activities of
Parcel Locker Solutions in Japan and of Customer Experience
Management outside of North America and the Main European
countries. |
Major Operations revenue stood
at €232 million in Q3 2021, almost stable on an organic
basis compared to Q3 2020 (-0.4%). This reflected the
continuous resilience of subscription-related revenue (+2.5%) that
was offset by lower license and hardware sales (-7.4%) and revenue
from professional services (-1.8%).
-
Intelligent Communication Automation sales stood
at €51 million in Q3 2021, up 6.1% organically versus
Q3 2020. Growth mainly resulted from a strong double-digit
increase in subscription-related revenue (+20.3%) that more than
offset a sharp decline in license sales (-32.3%) due to the ongoing
shift in business model to SaaS subscriptions.
- After a first
half of 2021 that benefited from a favorable comparison basis in
H1 2020 due to the COVID lockdowns impact,
Mail-Related Solutions sales only declined by 1.8%
organically in Q3 2021 versus Q3 2020, at
€160 million. This reflected a resilient subscription-related
revenue performance (-3.2%) as well as slightly higher hardware and
license sales (+2.1%), with a continued good level of bookings in
the period.
- Parcel
Locker Solutions sales stood at €21 million in
Q3 2021, down 4.1% organically versus Q3 2020. This
mainly reflected a drop in license and hardware sales (-26.8%) due
to the significant revenue contribution of the Lowe’s contract in
the US in Q3 2020, partly offset by a double-digit growth in
subscription-related revenue in Q3 2021 (+18.7%). At the end
of Q3 2021, the parcel locker business benefits from a strong
pipeline of large tenders across regions.
Additional Operations revenue
stood at €16 million in Q3 2021, up 0.9% on an organic
basis compared to Q3 2020.
OUTLOOK
- With a backlog
at the highest level of the year at the end of 9M 2021 and
solid bookings expected across all solutions in Q4 2021, as
planned, but considering the current supply chain tensions,
Quadient now expects for full-year 2021:
- Organic sales
growth around 4% (versus above 4% previously)
- Current EBIT9
organic10 growth around 5-6% (versus above 6% previously)
- 2021-2023
guidance on both sales and current EBIT11 organic12 CAGR
confirmed
Q3 2021 BUSINESS
HIGHLIGHTS
Quadient Introduces the iX-9, a
High-output Mailing and Shipping System Combined with All-in-one
Mail Center Software
On 9 August 2021, Quadient announced the general
availability in the U.S. of the latest addition to its successful
iX-Series: the iX-9 Series high-volume mailing system, available
both standalone and integrated with the company’s S.M.A.R.T.®
cloud-based mail center software.
Quadient Announces Partnership with
UiPath to Further Enhance and Automate Omnichannel Customer
Communications
On 18 August, Quadient announced it has
partnered with leading enterprise automation software company
UiPath. Quadient’s partnership and integration with UiPath helps
enterprises digitally transform customer experiences while
maintaining regulatory compliance on customer communications,
boosting productivity, reducing cost and improving employee
satisfaction.
Quadient Among Finalists for Parcel and
Postal Technology International Awards 2021
On 8 September 2021, Quadient announced it has
been selected as a finalist once again for the Parcel and Postal
Technology International Awards. Its innovative solution Campus Hub
is in the 2021 shortlist for the "Final Mile Innovation of the
Year" category. Campus Hub is a smart parcel locker solution that
enables university campuses to seamlessly manage the growing volume
of packages and goods to be delivered and distributed to
students.
Independent Consulting Study Reveals
Strong Total Economic Impact for Users of Accounts Receivable
Automation Solution YayPay by Quadient
On 13 September 2021, Quadient announced the
publication of a study conducted by Forrester Consulting, part of a
leading global research and advisory firm, showing that YayPay by
Quadient, an accounts receivable (AR) management and automation
solution, can help reduce days sales outstanding (DSO), improve the
customer experience, accurately predict cash flow and reduce lost
revenue, with a return on investment (ROI) for a composite customer
of over 400% over three years.
Quadient Surpasses 10,000 Global
Software Customers
On 29 September, Quadient announced that it has
crossed over the 10,000 software customer threshold for the first
time.
Paula Felstead appointed as an
independent director of Quadient
On 1 October, Quadient announced the appointment
of Paula Felstead, an expert in transformation, digital and
technology, as an independent member of the Board of Directors,
effective 24 September 2021. Paula Felstead was co-opted to replace
Virginie Fauvel, who resigned from her position as Director on 2nd
September 2021.
Quadient Releases Significant Upgrade to
its Cloud-based Document Automation Solution to Expedite Transition
to Digital for SMBs
On 5 October, Quadient announced a significant
upgrade to Quadient® Impress, a software-as-a-service (SaaS)
multi-channel document delivery and automation solution for small
and medium businesses (SMBs). The solution now offers delivery
channel preference management capabilities.
Quadient’s Cloud-based Customer Journey
Mapping Named Leader by Independent Research Firm
On 11 October, Quadient announced it has been
recognized as a Technology Leader in a new analysis of the global
customer journey mapping (CJM) market. The SPARK Matrix: Customer
Journey Mapping (CJM), 2021 study from Quadrant Knowledge Solutions
is a competitive analysis of the CJM market and ranks leading CJM
vendors. The study concluded that Quadient’s CJM SaaS-based
solution, Inspire Journey, is distinguished by its approach of
providing a CJM tool designed for customer communication portfolio
management, connecting often ignored touchpoints in customer
experience (CX) strategies.
Accounts Receivable Automation Solution
YayPay by Quadient Joins Forces with Flywire to Digitize Global B2B
Payment
On 22 October, Quadient announced a new
strategic collaboration to automate and digitize
business-to-business (B2B) payments globally. As a result of the
partnership, Quadient’s cloud-based accounts receivable (AR)
management and automation solution, YayPay by Quadient, will extend
Flywire’s digital payment solutions to its global B2B clients.
ESG: Quadient reaches the podium with
second place in the 2021 Gaïa Research ranking
On 29 October, Quadient announced it was awarded
second place in the Gaïa Research 2021 ranking, in the category of
companies with more than €500 million in revenues. Every year, Gaïa
Research recognizes French companies with the best environmental,
social and governance (ESG) performance from a panel of 230 small
and medium sized companies listed on Euronext Paris. Already ranked
fifth in its category last year, Quadient continues its efforts to
improve in all three areas.
POST-CLOSING EVENTS
Quadient Listed Among Leading French
Software Publishing Companies
On 4 November, Quadient announced it has been
ranked 13th in the 2021 edition of the EY/Numeum Top 250 French
software publishers and developers. The Top 250, published by
consultancy firm EY and professional software industry association
Numeum, evaluated 269 companies according to their software
publishing revenue. Quadient also placed fifth in the Horizontal
French Publishers’ Category.
French Real-Estate Player France Loire
Chooses Quadient to Offer its Residents a Modern Parcel Pick-up
Solution
On 9 November, Quadient announced that its
Parcel Pending by Quadient solution has been selected by France
Loire, a French social housing company owned by the Arcade-VYV
Group, to equip one of their residential buildings in the city of
Vierzon, in the department of the Cher. The new Quadient smart
parcel locker has been installed to allow residents to
receive their parcels in a simple and secure manner.
Quadient successfully issues a new
Schuldschein private placement amounting to €270 million under very
favorable conditions
On 22 November, Quadient announced that it has
successfully raised the equivalent of €270 million (i.e. €178
million and USD105 million) through a Schuldschein, a private
placement loan issued under German law. On the back of strong
investor interest, the deal volume was upsized to €270 million from
€100 million initially planned.
Quadient Introduces New Mail Outsourcing
Capabilities for its Cloud-Based Platform Quadient® Impress in
France, in Partnership with Tessi
On 29 November, Quadient announced the
availability of new mail delivery services in France, expanding the
capabilities of Quadient® Impress, its cloud-based document
automation platform for small and medium businesses (SMBs). To
support the new service, Quadient has chosen to partner with Tessi,
a global provider of Business Process Services.
CONFERENCE CALL &
WEBCAST
Quadient’s management
will host a conference call and webcast
today at
6:15pm
CET
(5:15pm
GMT).
To join the webcast,
please click on the following link:
https://channel.royalcast.com/landingpage/quadienten/20211207_1/.
To join the conference
call, please use the following dial-in numbers:
▪ France:
+33 (0) 1 70 37 71 66;
▪ United
States: +1 212 999 6659;
▪ United
Kingdom (standard international): +44 (0) 33 0551 0200.
Password:
QUADIENT.
A replay of the
webcast will be available for a period of one year.
***
About Quadient®
Quadient is the driving force behind the world’s
most meaningful customer experiences. By focusing on three key
solution areas, Intelligent Communication Automation, Parcel Locker
Solutions and Mail-Related Solutions, Quadient helps simplify the
connection between people and what matters. Quadient supports
hundreds of thousands of customers worldwide in their quest to
create relevant, personalized connections and achieve customer
experience excellence. Quadient is listed in compartment B of
Euronext Paris (QDT) and is part of the CAC® Mid & Small and
EnterNext® Tech 40 indices.
For more information about Quadient, visit
https://invest.quadient.com/
Contacts
Laurent Sfaxi, Quadient+33 (0)1 45 36 61
39l.sfaxi@quadient.comfinancial-communication@quadient.com Caroline
Baude, Quadient+33 (0)1 45 36 31
82c.baude@quadient.com |
OPRG FinancialIsabelle Laurent / Fabrice Baron+33
(0)1 53 32 61 51 /+33 (0)1 53 32 61
27isabelle.laurent@oprgfinancial.frfabrice.baron@oprgfinancial.fr |
1 9M 2021 sales are compared to
9M 2020 sales, from which is deducted (prorata temporis)
revenue from ProShip, the Graphics activities in Australia and New
Zealand and the Automated Packaging Systems business, and to which
is added (prorata temporis) revenue from YayPay and Beanworks, for
a total amount of -€25 million, and are restated from a
€18 million negative currency impact over the period.2
Q3 2021 sales are compared to Q3 2020 sales, from which
is deducted (pro rata temporis) revenue from the Graphics
activities in Australia and New Zealand and the Automated Packaging
Systems business, and to which is added (pro rata temporis) revenue
from Beanworks, for a total amount of -€12 million, and are
restated from a €2 million positive currency impact over the
period.3 Within Major Operations.4 Current operating income before
acquisition-related expenses.5 On the basis of 2020 current
operating income before acquisition-related expenses excluding
Parcel Pending’s earn-out reversal, i.e. €145 million, with a
scope effect resulting in a €140 million proforma.6 Including
the divestment of ProShip (end-February 2020), the acquisition of
YayPay (29 July 2020), the divestment of the Graphics
activities in Australia and New Zealand (21 January 2021), the
acquisition of Beanworks (23 March 2021), and the divestment
of the Automated Packaging Systems (“CVP”) business (end-July
2021).7 SaaS = Software as a Service.8 Including the divestment of
the Graphics activities in Australia and New Zealand
(21 January 2021), the acquisition of Beanworks (23 March
2021), and the divestment of the Automated Packaging Systems
(“CVP”) business (end-July 2021).9 Current operating income before
acquisition-related expenses.10 On the basis of 2020 current
operating income before acquisition-related expenses excluding
Parcel Pending’s earn-out reversal, i.e. €145 million, with a
scope effect resulting in a €140 million proforma.
- 2021 9M - Quadient - Press Release VA - FINAL
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