Artefact: +17% growth in gross margin for Q4 2020 (+10% for the
year)
Artefact Group achieves +17% growth in
gross margin for Q4 2020 (+10% for the year)
Company records strong increase in
2020 EBITDAr1, estimated to be between €13.5m and
€14.0m
Paris, January 28, 2021 – 5:45 pm CET -
Artefact (FR0000079683 – ALATF –
eligible for PEA-PME equity savings plans), a data
transformation specialist guiding major brands, today announces its
gross margin and its estimated EBITDAr range for FY 2020.
Guillaume de Roquemaurel and Vincent
Luciani, co-CEOs of the Artefact Group, said: “Our Group’s
robust commercial performances and our improvement in
profitability, has been achieved despite the pandemic and economic
conditions. It provides compelling evidence that Artefact’s
positioning and business model are highly effective. These
commercial successes, including very impressive Q4 proforma2 growth
of 17%, reflect increasing demand from major international brands
for our data-driven offerings. These serve as a real driver helping
our clients to overcome the crisis through a customer-centric
reconfiguration of their organisations and processes. Everything
has slotted into place for Artefact at the beginning of the year,
and we are very keen to keep this momentum going and to extend our
leadership position in data transformation consulting and
services.”
Strong improvement in the 2020 gross margin and
excellent Q4 performance amid unprecedented
conditions
Artefact’s FY 2020 gross margin rose 10%
proforma to €70.3m. Building on a strong first six months, when it
recorded proforma growth of 9.0% amid the public health crisis,
Artefact’s commercial performance accelerated in the second
semester with the gross margin increasing by 11%.
This performance was notably driven by the
Group’s successful reconfiguration to focus on three services. This
segmentation has unlocked more from Artefact’s value proposition
which helps major brands reconfigure their organisations to become
consumer-centrics.
Artefact’s core services include:
- Data Consulting, data transformation
consulting, which also extends beyond the marketing
function
- Data Marketing, support for marketing
departments with the adoption of new data tools
- Digital Activation, consulting and execution
of digital advertising campaigns
The Data Consulting and Data Marketing
businesses were the two main growth drivers and together accounted
for around two-thirds of the 2020 gross margin.
Record level of business in Q4 2020 with
a 17% proforma increase
During the fourth quarter of 2020, Artefact’s
gross margin totaled €20.3m, accelerating its growth to a proforma
rate of 17%, which is on par with levels before the Covid-19
pandemic.
Significant demand for Artefact’s
data-driven expertise from major brands across most
regions
Further strong improvement in France:
proforma growth of 20% in the 2020 gross margin
In France, the 2020 gross margin rose 20%
compared with 2019 to total €34.6m, representing almost half of
Artefact’s total business. Growth was even stronger in the fourth
quarter of 2020, with a gross margin up 22% compared with the same
period in 2019. The Data Consulting and Data Marketing businesses
were again the main contributors, recording a growth rate of 39%
over the year.
Impressive upturn in second-half
business trends in the Rest of Europe, supported by the strength of
demand in the United Kingdom and the Netherlands
In the Rest of Europe, the gross margin declined
8% in FY 2020 as a result of the public health crisis. This cause a
sharp slowdown in the Digital Activation business, which is still
prominent in this region.
Nonetheless, the region saw an upturn in
business in the final quarter of 2020, with posting growth of 5%
driven by the United Kingdom and the Netherlands.
Indeed, business in the United Kingdom improved
spectacularly over the year, with a 17% increase in the proforma
gross margin in the second half of 2020. This included a 33%
increase in the fourth quarter of 2020, Artefact’s best-ever
performance in the region.
Lastly, the Netherlands again recorded a very
brisk rate of growth, with the gross margin up 55% compared with FY
2019.
Very strong performance in the APAC and
MENA regions, highlighting the potential for Artefact’s development
outside Europe
Other Artefact markets posted a strong increase
of 20% in FY 2020, with APAC recording growth of 18% and MENA 24%.
In Asia, Artefact again posted an excellent performance, reflecting
the success of its Data Marketing and Data Consulting offerings
whose gross margin more than doubled in FY 2020, increasing by
115%, notably by collaborating with four major European brands
during the year. Expansion in the MENA region reflects strong
demand from tech and tourism clients.
FY gross margin trends by geographic
zone
|
Reported |
Proforma |
Reported |
Gross margin (in €m) |
2020 |
2019 |
% change |
2019 |
% change |
France |
34.6 |
28.9 |
+20% |
28.9 |
+20% |
Rest of Europe |
20.4 |
22.2 |
-8% |
24.5 |
-17% |
Other Markets* |
15.3 |
12.7 |
+20% |
12.8 |
+20% |
Total |
70.3 |
63.8 |
+10% |
66.2 |
+6% |
Data
currently being audited - *Other markets include the Asia-Pacific
region - MENA - Brazil |
Q4 gross margin trends by geographic zone
|
Reported |
Proforma |
Reported |
Gross margin (in €m) |
Q4 2020 |
Q4 2019 |
% change |
Q4 2019 |
% change |
France |
9.7 |
7.9 |
+22% |
7.9 |
+22% |
Rest of Europe |
6.2 |
5.9 |
+5% |
6.6 |
-6% |
Other Markets* |
4.5 |
3.6 |
+24% |
3.6 |
+24% |
Total |
20.3 |
17.4 |
+17% |
18.1 |
+12% |
Data currently being audited - *Other markets include the
Asia-Pacific region - MENA - Brazil |
2020 EBITDAr guidance revised up and representing over
19% of the gross margin for an amount between €13.5m and
€14.0m
The 2020 EBITDAr estimate – ahead of the exact
figure due to be published with 2020 annual results on April 22,
2021 – shows Artefact’s performance has genuinely reached a turning
point. The very strong improvement in the EBITDAr margin compared
with 2019 and between the two halves of 2020 thus reflects the
impact of impressive growth and its much stronger leverage on the
cost structure. It also illustrates the success of the Group’s
reconfiguration around its most profitable and fastest-growing
businesses – the other key element of the plan. The Group is thus
confident in its ability to post a 2020 EBITDAr margin of over 19%
(versus an initial target of over 15% set in October).
Promising 2021 outlook underpinned by
the structural demand from major international brands for digital
and data transformation
The current context of brands’ increased
digitalisation, and more generally the extension of the phenomenon
towards consumer-centric organisations, represents a strong driver
for Artefact. Moreover, the pertinence of this consumer-centric
approach has been underscored during the pandemic, which has
brought its importance into even clearer focus.
Accordingly, the Group confidently expects to
continue winning over new clients, while raising its profitability,
thanks to its unique positioning as a high value-added digital
transformation consulting company. Lastly, Artefact's solid
financial structure, strengthened in December 2020, will support
the acceleration of the Group’s development.
Download Artefact’s 2020 Year book
here to find out more about Artefact’s 2020 achievements
and expertise.
Forthcoming diary dates
April 22, 2021:
FY 2020
results and Q1 2021 gross margin
About Artefact
I artefact.com
Artefact is a
next-generation data-driven consulting and services firm,
transforming data into value and business impact for its clients.
With a broad presence on the world's main markets (France, Germany,
the UK, Asia, Dubai), Artefact serves an extensive portfolio of
more than 300 clients, including a host of world leaders such as
Samsung, Danone, L’Oréal and Sanofi. The Group has three main
service offerings, leveraging its data mining and data analysis
capacities: Data Consulting, Data Marketing and Digital Activation.
Artefact is listed on the Euronext growth stock exchange in Paris
(ISIN code: FR0000079683).
Artefact 19, rue Richer - 75009 – Paris - France
| Phone + 33 1 79 72 45 45 | E-mail hello-france@artefact.com
Contacts
ArtefactHayette Soltani CFOTel.: +33 1 40 40
27 00investor-relations@artefact.com |
NewCapLouis-Victor DelouvrierQuentin MasséInvestor
relationsTel.: +33 1 44 71 98 53artefact@newcap.eu |
NewCapNicolas Merigeau Media relationsTel.:
+33 1 44 71 94 98artefact@newcap.eu |
1 EBITDAr: EBITDA restated for the IFRS 2 impact
of free share allocations and preference share issues, as well as
the IFRS 3R impact associated with remuneration for
post-combination services and that of IFRS 16 relating to the
adjustment for lease payments. Artefact has thus decided to present
restated EBITDA to better reflect its operating performance, as
tracked for internal reporting purposes by management,
independently of its policy for attracting and retaining talent and
the acquisition terms and conditions set out in its acquisitions
policy
2 Proforma data resulting from the restatement
after disposals and office closures in the Nordic countries and
Italy and following the removal of the Spanish joint venture
MediaDiamond from the group's scope of consolidation.
- Artefact_ 2020 Gross Margin_ENG