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
“As expected, after a strong first half of the year, third-quarter organic sales growth wasstable 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 networksas 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 tensionsin hardware equipment due to lower availability of components and shipping delays. These supply chain tensionsare 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% |
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 (d) International includes the activities of Parcel Locker Solutions in |
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%.
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
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
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
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
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% |
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 (h) International includes the activities of Parcel Locker Solutions in |
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
On
On 18 August,
Quadient Among Finalists for
On
Independent Consulting Study Reveals Strong Total Economic Impact for Users of Accounts Receivable Automation Solution YayPay by
On
Quadient Surpasses 10,000 Global Software Customers
On 29 September,
On 1 October,
Quadient Releases Significant Upgrade to its Cloud-based Document Automation Solution to Expedite Transition to Digital for SMBs
On 5 October,
Quadient’s Cloud-based Customer Journey Mapping Named Leader by Independent Research Firm
On 11 October,
Accounts Receivable Automation Solution YayPay by Quadient Joins Forces with Flywire to Digitize Global B2B Payment
On 22 October,
ESG:
On 29 October,
POST-CLOSING EVENTS
Quadient Listed Among Leading French Software Publishing Companies
On 4 November,
French Real-Estate Player France Loire Chooses Quadient to Offer its Residents a Modern Parcel Pick-up Solution
On 9 November,
On 22 November,
Quadient Introduces New Mail Outsourcing Capabilities for its Cloud-Based Platform Quadient® Impress in
On 29 November,
CONFERENCE CALL & WEBCAST
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:
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▪ United Kingdom (standard international): +44 (0) 33 0551 0200.
Password:
A replay of the webcast will be available for a period of one year.
***
About Quadient®
For more information about
Contacts
+33 (0)1 45 36 61 39 l.sfaxi@quadient.com financial-communication@quadient.com +33 (0)1 45 36 31 82 c.baude@quadient.com | OPRG Financial +33 (0)1 53 32 61 51 /+33 (0)1 53 32 61 27 isabelle.laurent@oprgfinancial.fr fabrice.baron@oprgfinancial.fr |
1 9M 2021 sales are compared to 9M 2020 sales, from which is deducted (prorata temporis) revenue from
2 Q3 2021 sales are compared to Q3 2020 sales, from which is deducted (pro rata temporis) revenue from the Graphics activities in
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
7 SaaS = Software as a Service.
8 Including the divestment of the Graphics activities in
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.
Attachment
- 2021 9M -
Quadient - Press Release VA - FINAL
![](https://ml-eu.globenewswire.com/media/YWJkM2QxOWYtNTRkNC00ZTZhLWJlZWUtZGM0OWFlZTliNjQ2LTEwMTExNTg=/tiny/QUADIENT.png)
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