Exclusive Networks, a global leader in cybersecurity, today announces financial results for the first half ended June 30, 2022. Management will host a conference call today at 9:00 am CET, which you can watch via webcast.
Total revenue was €1,947.4 million, up 33.8% compared to 2021 on a reported basis and 31.2% at constant exchange rates. “Most of this growth (72%) is the result of activity with existing suppliers in the current region. The remainder of this growth is 14% from supplier expansion and 14% from acquisitions. , a combination of our vendor new entrants: geography (~5%) and new vendor relationships (~9%) Acquisitions of Ignition Technology and Networks Unlimited supported our growth through external businesses ‘ commented management.
“Supplier retention increased in the first half of 2022, supported by increased demand for solutions from suppliers and continued engagement of channel partners. Net euro retention increased by 128% in the first half of 2022 ( 112% in the first half of 2021) and a net retention rate of 127% in euros (108% in the first half of 2021).”
Net profit in the first half of 2022 was 187.6 million euros, an increase of 29% compared to the previous financial year. Revenue growth has been underperforming due to differences in geographic distribution and business scale.
Adjusted EBITA increased significantly by 39.3% to €66.5 million compared to 2021, outpacing revenue growth. His EBITA margin adjusted to net income increased 261 bps year-on-year to 35.4% as the group benefited from operating leverage.
Adjusted net income was €47.5 million, up 49.4% compared to 2021.
2022 first half cash flow and funding
Free cash flow from operating activities before tax in the first half of 2022 amounted to €166.2 million, representing a cash translation of 227.7% of Adjusted EBITDA, an increase compared to 111.7% last year. The increase in cash generation during this period has been driven by strong commercial performance and a significant increase in working capital thanks to the strengthening of non-recourse factoring facilities, improved terms of business with suppliers and the new timing of his VAT payments in the UK. It is due to being released. , reduced working capital by a total of €103 million in the first half of 2022, despite activity growth.
Leverage: “As of June 30, 2022, Exclusive Networks had total financial liabilities of €518 million, cash and cash equivalents of €257 million and net debt of 261 million. The reduction was supported by a solid period generation.We are now targeting a net debt/EBITDA leverage ratio of less than 2x at the end of fiscal year 2022.
Given the strong performance in the first half of 2022 extends into the second half, Exclusive Networks’ management has decided to upgrade its outlook for fiscal 2022 to the following:
– Total revenues should now exceed €4.2 billion (previous projections of more than €3.8 billion).
– Net income increased from €392 million to €400 million (previously €362 million to €368 million).
– Adjusted EBITA should now be between €146 million and €152 million (previously between €133 million and €138 million).
– In addition, pre-tax free cash flow from operations is now expected to exceed 160% of Adjusted EBITA, compared to 80% previously…
CEO Jesper Trolle said: Not only did we deliver record six-month total sales, we were able to drive profitability faster than sales and generate cash faster than market momentum. And given the critical importance of having a good cybersecurity infrastructure for businesses of all sizes and public institutions, we continue to see positive trends.
Our positioning as the world’s only ‘pure player’ in cybersecurity and our unrivaled ability to execute has enabled us to generate above-market growth and strong orders.
We recognize that the global macroeconomic environment is becoming increasingly challenging. However, a strong start to the year confirmed in the second half of the year, robust forward-looking indicators, and the increasing strategic importance of cybersecurity provide good prospects for the remainder of 2022. Despite the unforeseen circumstances, we are confident that we will meet our upgraded full-year targets today. “