Caissargues, October 18, 2022
| In € millions | 2020-2021 | 2021-2022 | Change |
| Revenue | 444.1 | 468.3 | +5.5% |
| EBITDA1 | 88.3 | 95.0 | +7.6% |
| EBITDA margin | 19.9% | 20.3% | |
| Recurring operating profit | 37.0 | 38.9 | +5.1% |
| Operating margin before non-recurring items | 8.3% | 8.3% | |
| Operating profit | 28.3 | 32.5 | +14.8% |
| Net profit | 14.3 | 14.3 | - |
1 EBITDA = recurring operating profit + net depreciation, amortization and provisions.
Revenue up +5.5%
Groupe Bastide reported revenue of €468.3 million for the 2021-2022 fiscal year, up 5.5% and exceeding the Group's target of €460 million. Organic growth2 edged back by just 0.8%, despite a drop of more than 70% in sales of personal protective equipment (PPE) due to the end of the health crisis.
The "Respiratory" (up 18.5% to €134.8 million) and "Nutrition-Perfusion-Stomatherapy" (up 19.6% to €119.9 million) businesses both delivered solid performances and benefited from the effects of acquisitions, notably the contribution of Livramedom (Perfusion) and Medpro (Respiratory). The decline in Homecare (down 7.2% to €213.6 million) is solely attributable to the drop in PPE sales (down 74%).
Operating profitability maintained despite significant price cuts and an inflationary context
Despite the negative impact of the inflationary context and the 10% price cut in France for the treatment of sleep apnea and diabetes as of September 1, 2021 and January 1, 2021 respectively, the EBITDA margin increased by 60 bps to 20.3%, lifting EBITDA 7.6% to €95.0 million.
This increase in margin was partly due to an increase in service activities and partly to changes in the product mix, in particular a decrease in PPE sales. This had a positive impact on gross margin which rose 240 points to 65.5%.
Recurring operating profit was up 5.1% to €38.9 million, resulting in a stable margin of 8.3%, in line with the Group's target. Excluding price cuts, whose impact is estimated at €4.0 million, recurring operating margin would have reached 9.1%, i.e., an increase of 80 bps compared with the 2020-2021 margin.
Operating profit increased to €32.5 million. Non-recurring expenses include a fair value adjustment of the Keylab earn-out and various extraordinary expenses, including restructuring costs.
Financial expenses amounted to €10.2 million, representing an average net debt rate of 3.4%, which is stable compared to 2020-2021. Net income remained stable at €14.3 million, after taking into account a €5.9 million tax expense.
Financial structure
Cash flow from operations was €56.9 million, resulting from cash flow after taxes of €85.7 million and an increase in working capital of €28.9 million. This change in working capital is mainly attributable to two temporary factors: firstly, an IT migration in the stomatotherapy business, which impacted the invoicing system and led to a one-off increase in receivables, and secondly, an increase in inventories, partly as a precautionary measure to avoid supply shortfalls.
These flows cover net operating investments, which amounted to €50.0 million, up 7.8% compared to 2020-2021, and remain high, mainly due to over-investment in the United Kingdom. A return to normal investment levels is expected in 2022-2023.
During the year, Bastide pursued its external growth strategy, targeting international markets and a focus on high technical expertise and high recurrence businesses, with six acquisitions totaling €43.1 million. The Group also allocated €4.8 million to the payment of earn-outs and
€6.6 million to minority buyouts.
This proactive strategy of targeted acquisitions combined with sustained investments resulted in an increase in net gearing.
Excluding lease liabilities of €83.1 million, net debt amounted to €314.0 million at June 30, 2022 and shareholders' equity to €86.6 million. Cash and cash equivalents stood at €22.1 million. At c. 3.75x, the Group maintained control over its leverage (net debt3/restated EBITDA4 - excluding
IFRS 16 impact), which was below the authorized level of 4.2 for the leverage at June 30, 2022.
During the first half of the year, the Group carried out a refinancing operation to extend the maturity of its debt. The maturity of the tranches of the credit agreement were set at
three years, with the possibility of being extended for two additional years at the lenders' discretion. The Group asked for the two-year extension mid October wich would bring the maturity of the in-fine repayable tranches, i.e., €232 million, to 2026-2027.
Two acquisitions in France
In October, the Bastide Group announced that it had completed the acquisition of French companies Probace Meditec (Nutrition-Perfusion and Homecare) and 4S E-med (Respiratory). In line with the Group's strategy, these acquisitions strengthen the Bastide Group's market share in high technical expertise and high recurrence businesses. The two companies will be consolidated as of October 1, 2022 and will contribute full-year revenue of nearly €6 million.
2022-2023 outlook
Given the pricing environment, which is expected to be relatively stable, and a healthier basis for comparison, organic growth should return to a level comparable to that recorded before the health crisis and in line with fourth quarter 2021-2022. The Bastide Group therefore confirms its target of over €520 million in annual revenue, including the contribution of recent acquisitions.
Despite the inflationary context, the Group also confirms its target of an operating margin before non-recurring items of more than 8.3%, thanks to strict control of its structural costs.
Significantly improving free cash flow will be a priority for the 2022-2023 fiscal year, as a result of the expected growth in cash flow, a return to more normal levels of working capital and strict control of operating investments.
Hence the Group intends to pursue its strategy of reasoned external growth focused on international diversification and recurring, high value-added activities, together with a gradual reduction in debt.
NEXT MEETING:
2022-2023 Q1 revenue on November 16, 2022, after the close of trading
About Groupe Bastide Le Confort Médical
Created in 1977 by Guy Bastide, Groupe Bastide is a leading European provider of home healthcare services. Present in 7 countries, Bastide develops a permanent quality approach and is committed to providing medical devices and associated services that best meet patients' needs in key health areas: diabetes, nutrition, infusion, respiratory care, stomatherapy and urology. Bastide is listed on Euronext Paris (ISIN: FR0000035370, Reuters BATD.PA, - Bloomberg BLC: FP).
| Groupe Bastide | Actus Finance | |
| Vincent Bastide/Olivier Jourdanney T. +33 (0)4 66 38 68 08 www.bastide-groupe.fr | Analyst-Investor Hélène de Watteville T. +33 (0)1 53 67 36 33 | Press - Media Déborah Schwartz T. +33 (0)1 53 67 36 35 |
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