Technologies for
Positive Commerce
Q1 2024 Sales Conference Call
April 25, 2024
Q1 2024 Sales
- Q1 revenue of €172m (€178m in adjusted figures; +12% growth, in line with guidance)
- Record order entries at €274m (+24%), the second best-ever quarter
- Strong growth of recurring VAS to €12.5m (+33%), representing more than 60% of total VAS revenue of €19.5m (-20% vs. Q1 2023)
- Reconfirmed guidance in adjusted figures for H1 revenue in a range of €420m to 440m, and full-year 2024 revenue of €1bn
In €m | IFRS Sales | Adjustments | Adjusted | |||
to Walmart | ||||||
sales | ||||||
contract | ||||||
Q1 2024 | 171.9 | -5.8 | 177.7 | |||
Q1 2023 | 159.3 | - | 159.3 | |||
% Change | +8% | N/A | +12% | |||
Proprietary and confidential. Do not distribute.
Adjusted sales incorporates IFRS standards before adjusting for certain non-cash IFRS 15 adjustments related to the Walmart US
contract, which began in Q4 2023. These adjustments only impact the Americas & Asia-Pacific region. Please see the detailed2 explanatory note at the end of this press release.
Q1 Growth driven by | €m | ||||
North America | Americas/APAC | EMEA | |||
178 |
-
EMEA: 60% of sales (€106m) generated in EMEA.
A -18% decrease, due to the planned finalization of the implementation phase of a large European client: - This cycle effect is expected to have a temporary impact in 2024, with sales growth resuming in 2025 on the back of the many contracts signed in Europe in recent months.
- Excluding the effect of this final phase of a major roll-out, the EMEA top-line grew in Q1;
- AMERICAS/APAC: 40% of sales (€71.5m) for +146% growth mainly driven by the United States, which is set to become the Group's largest market in 2024.
- This robust growth momentum is expected to continue in the coming quarters.
159 +12%
106 -18%
130
72 +146%
29
Q1 2023 | Q1 2024 |
Proprietary and confidential. Do not distribute. | 3 |
VAS revenues
Q1 VAS revenues
€m
Recurring | Non-Recurring | |
24.5
19.5
15.1 | 7 |
FY 2024 VAS estimate
€m
Recurring | Non-Recurring | |
120-140
109
60-80
67
9.4
+33% 12.5
~60
42
Q1 2023 | Q1 2024 |
Proprietary and confidential. Do not distribute.
FY 2023 | FY 2024e |
4
Order entries
- Global order entries at €274m (+24%)
- 2nd strongest quarterly growth rate in VusionGroup's history
- Record level for a first quarter.
- This significant momentum is driven by both Europe and the United States.
- For the first time, 12m OE passes 1B€
Proprietary and confidential. Do not distribute.
€m
400 | Quarter | Rolling 12m | 1003 | |||||||
950 | 1000 | |||||||||
350 | 848 | |||||||||
818 | ||||||||||
300 | 736 | 800 | ||||||||
297 | ||||||||||
250 | 274 | |||||||||
240 | 600 | |||||||||
200 | 221 | |||||||||
192 | ||||||||||
150 | 400 | |||||||||
100 | ||||||||||
200 | ||||||||||
50 | ||||||||||
0 | 0 | |||||||||
Q1 2023 | Q2 2023 | Q3 2023 | Q4 2023 | Q1 2024 | ||||||
5 |
2024 outlook: VusionGroup confident on its €1B adjusted revenue target
Adj. Revenue | 1,000+ |
(€m)
800
50-60%
EMEA ~80%
40-50%
AMERICAS | ~20% |
& APAC |
Due to the planned and previously disclosed finalization of the implementation phase of a large European client, sales in EMEA will decrease temporarily compared to the record levels reported in 2023 and are expected to grow again in 2025 as a result of many wins signed recently.
Sales in the United States are expected to accelerate strongly, resulting in triple- digit growth.
Adj. Revenue by semester
(€m)
580-600
(+30-40%)
420-440
(+10-15%)
20232024
H1H2
Proprietary and confidential. Do not distribute.
Adjusted sales incorporates IFRS standards before adjusting for certain non-cash IFRS 15 adjustments related to the Walmart US
contract, which began in Q4 2023. These adjustments only impact the Americas & Asia-Pacific region. Please see the detailed6 explanatory note at the end of this press release.
2024 Outlook (continued)
Total VAS revenue anticipated to reach €120-140m
- Ongoing difficult macroeconomic environment affecting capex on new innovative projects
- Non-recurringVAS expected to decrease in H1; despite this decline, particularly in H1, the Group anticipates an improvement in the adjusted VCM rate in the first half and for the full year compared to the same periods in 2023, driven in particular by the increase of recurring VAS.
- Recurring VAS to continue to grow strongly to a target of €60m+, ie ~50% growth
VusionGroup also expects:
- Continued robust new orders growth throughout 2024
- Profitability improvement with adjusted EBITDA margin1 growing by +50 to +100 bps
- Continued positive cash flow generation
Proprietary and confidential. Do not distribute. | 7 |
Note on the IFRS Adjustments related to the new Walmart contract:
- Two IFRS adjustments related to the new Walmart contract impact 2023 financial disclosures:
- On June 2, 2023, at their Annual General Meeting, the Group's shareholders approved a grant to Walmart of 1,761,200 of stock warrants on the Group's shares. According to IFRS standards, the fair value of these warrants should be calculated. On June 2, 2023, the fair value of the warrants was established at €163m. A contract asset and a financial debt were thus recorded in the consolidated accounts for this amount.
- The contract asset, which is a fixed amount, is amortized in proportion to the forecast revenue generated by the Walmart contract over the duration of the roll-out of the VusionGroup platform in Walmart stores. The reduced revenue impact is customary as the warrants will only have a potential dilutive effect, which was modeled and communicated during the allocation of the warrants in early June 2023. This does not impact the actual sales invoiced to Walmart. This adjustment has no impact on the Group's cash flow. It impacts all of the Group's income statement lines, in the same proportion. This negative impact to the Group's IFRS accounts will continue until the end of the Walmart contract, in direct proportion to the sales generated by this contract.
- The financial debt is subject to revaluation at each closing, depending on the number of exercisable warrants and the market price of VusionGroup shares. Any change is recorded as financial income in the Group's consolidated accounts. VusionGroup will continue to communicate at each closing the impact on revenue and net income of this IFRS adjustment.
- The impact of future price reductions indexed to the volumes agreed upon with Walmart from the first deliveries of electronic shelf labels (ESLs): The cost of the Group's hardware solutions is a function of the volume manufactured. A significant increase in volume might thus lead to lower cost. Therefore, it has been agreed with this customer that they will be granted price reductions in relation to the future sales volume to which they contribute. The IFRS standard (IFRS 15) requires prices to be averaged over the life of the contract. The application of this adjustment in 2023 impacts reported revenue (IFRS) and the margin, even though price reductions will only be granted if and when volumes will have reached certain thresholds. The application of this standard has a negative impact on revenue and all income statement lines, down to net profit.
Proprietary and confidential. Do not distribute. | 8 |
Technologies for
Positive Commerce
Q1 2024 Sales Conference Call
April 25, 2024
- Q1 revenue of €172m (€178m in adjusted figures; +12% growth, in line with guidance)
- Record order entries at €274m (+24%), the second best-ever quarter
- Strong growth of recurring VAS to €12.5m (+33%), representing more than 60% of total VAS revenue of €19.5m (-20% vs. Q1 2023)
- Reconfirmed guidance in adjusted figures for H1 revenue in a range of €420m to 440m, and full-year 2024 revenue of €1bn
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Vusiongroup SA published this content on 02 July 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 02 July 2024 19:02:03 UTC.