Yahoo Finance

• Revenue: Slight increase of 1% year on year.

• Organic Revenue Development: Down by 0.5% year on year.

• Adjusted EBITDA: EUR51 million, margin 18%, down 3 percentage points from Q1 2024.

• Free Cash Flow: EUR78 million, significantly higher than the same period last year.

• Adjusted EPS: EUR0.35 compared to EUR0.47 in the prior year quarter.

• AIS Segment Revenue: Decline of 2%, with recurring revenues stable at 78% of segment revenues.

• Hospital Segment Revenue: Growth of 5% quarter on quarter.

• Pharmacy Segment Revenue: Growth of 3%, with recurring revenues up by 4%.

• R&D Expenses: Slight increase, with expenses as a percentage of revenue at 24%.

• Net Debt: Decreased from EUR773 million to EUR702 million.

• Leverage: Above 3 times EBITDA as of March 2025.

• Financing Structure: Amended and extended with a revolving credit facility of EUR600 million and a term loan of EUR150 million.

• Warning! GuruFocus has detected 7 Warning Signs with WBO:COP.

Release Date: April 30, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• CompuGroup Medical SE & Co KgaA (WBO:COP) reported a slight increase in overall revenues by 1% year on year.

• Recurring revenues have shown consistent growth, with a compound annual growth rate (CAGR) of 11% over the past few years.

• The pharmacy segment experienced a revenue growth of 3%, with recurring revenues up by 4% and maintaining strong margins above 30%.

• Free cash flow significantly improved to EUR78 million, attributed to better working capital management and reduced restructuring and tax payments.

• The company secured its financing until 2030 with an amended and extended syndicated loan, providing a stable financial foundation for future growth.

Negative Points

• Organic revenue development was down by 0.5% year on year, indicating challenges in achieving growth.

• Adjusted EBITDA decreased compared to the previous year, with a margin 3 percentage points below Q1 2024.

• The AIS segment saw a revenue decline of 2% due to a drop in one-time revenues.

• The hospital segment experienced a downturn in profitability, impacted by continued investments in large projects and G3 technology.

• Adjusted EPS fell to EUR0.35 from EUR0.47 in the prior year quarter, reflecting decreased profitability.

Q & A Highlights

Q: What were the drivers behind the noticeable growth in other operating expenses, and should we expect this level going forward? Also, can you explain the increase in financial income? A: The increase in other operating expenses is due to several projects initiated to bring our business back on track. These are not expected to continue throughout the full year, so this is not a sustainable effect. Regarding financial income, the increase is due to a change in purchase liabilities valued at fair value, which is recorded in the financial results. Interest expenses are stable or slightly down.