Ipsos 2020: Resilience and Agility
Ipsos 2020: Resilience and
Agility Annual revenue: €1,837.4
millionRenewed organic growth in Q4:
+1.4%
Paris, February 24, 2021 - Ipsos posted revenue
of €1,837.4 million for the full-year 2020, down 8.3% on 2019.
Revenue fell 6.5% on a like-for-like basis, after accounting for a
negative exchange rate effect of 2.5%, primarily due to the
weakening of various emerging market currencies and of the US
dollar towards the end of the year, and a 0.8% positive effect of
changes in the scope of consolidation, from the acquisition of
Maritz Mystery Shopping in the US and Askia in France and in the
UK. The extent of this decline in revenue diminished as the year
progressed. It was 13.5% at the end of H1, 9.9% at the end of
September and ultimately 6.5% at the end of December for the full
year 2020, thanks to a positive Q4 of 1.4% organic growth.
CONSOLIDATED REVENUE BY
QUARTER
Consolidated revenue (millions of euros) |
2020 |
2019 |
Total change over the period 2020 / 2019 |
Organic growth over the period |
Q1 |
428.7 |
422.1 |
1.6% |
0% |
Q2 |
357.3 |
481.3 |
(25.8)% |
(25.3)% |
Q3 |
468.6 |
499.4 |
(6.2)% |
(3.3)% |
Q4 |
582.9 |
600.5 |
(3.0)% |
1.4% |
Annual total |
1,837.4 |
2,003.3 |
(8.3)% |
(6.5)% |
Revenue remained stable in Q1, which saw two strong months in
January and February and a poor month in March. It collapsed in Q2
with a 25.3% decline in organic growth, resulting in a 13.5%
decline over the first half.Once more on a like-for-like basis, the
decline was only 3.3% in Q3. Finally, from October to December,
organic growth returned to positive at +1.4%. The Q4 performance is
noteworthy on at least two levels: firstly, Q4 was the only quarter
of 2020 that saw positive growth while, secondly, this growth was
compared against Q4 2019 which, in turn, had been very positive
with organic growth of 5%.
Optically, the reported figures are less
favorable at current exchange rates. From October to December,
revenue fell 3% due to negative exchange rate effects of 5.2%,
which were only partially offset by the 0.8% positive effects of
the acquisition of Maritz Mystery Shopping and Askia.
PERFORMANCE BY
REGION
In millions of euros |
2020 revenue |
Contribution |
Total growth 2020 / 2019 |
Organic growth |
EMEA |
860.2 |
47% |
0.1% |
2% |
Americas |
663.9 |
36% |
(13.8)% |
(12)% |
Asia Pacific |
313.3 |
17% |
(16.2)% |
(14)% |
Annual revenue |
1,837.4 |
100% |
(8.3)% |
(6.5)% |
By region, revenue trends continued on the trajectory begun in
Q3.
Across the Americas (North and South), revenue was down 15.5% on
an organic basis after 6 months and 14.5% after 9 months. The
region closed 2020 at -12%, following a 5.6% decline in revenue in
Q4 alone. It should be noted that the pace of this improvement is
accelerating, particularly in North America, and even in South
America, despite the ongoing pandemic in many markets with high
levels of restrictions still in place. This is clearly an
illustration of the fact that many businesses and institutions
decided, following the period of turmoil in Q2, to acquire at an
increasingly sustained rate over the months, data and related
services (analysis, interpretation, advisory) that would allow them
to better measure and understand the context in which they operate
and its impact on their own businesses.
This is also true of the other regions in which Ipsos operates.
In Asia-Pacific, revenue picked up as the year progressed. We
recorded a like-for-like decline of 19.5% after 6 months and of
17.5% after 9 months. Over 2020 as a whole, the decline was 14%,
thanks to a limited decline of 7.3% in Q4. This is the region in
which ultimately the market remained weak, partly due to the weight
of emerging markets, including India and South East Asian
countries. Other countries like Japan, Australia and New Zealand
also generated average performances. China and South Korea
performed better.
Lastly, the EMEA region offers more promising news. At June 30,
the performance in terms of revenue growth was undeniably negative
at -9.5%, but already less affected by the pandemic than the
corresponding performances in the Americas and Asia-Pacific.
Like elsewhere, the improvement came in waves. The decline was
only 2.5% at end-September following a Q3 of +11%. For the
full-year, the EMEA region returned to positive territory. Over the
12-months it posted organic growth of 2%. Q4 outdid the excellent
performance in the previous quarter with like-for-like growth of
11.9%, scarcely affected by negative exchange rate effects of
4.6%.
We noted in our last press release on October 22, 2020 when we
reported on Q3 that our performance, which was already strong that
quarter, would be maintained “even if the prospect of double-digit
organic growth remains an ambitious target”. The ambition has been
unquestionably achieved. There is no secret to these excellent
results: a strong performance by our operations in Eastern Europe
and in Turkey, which represent the emerging markets within the
region, and in many Western European countries, particularly
the UK and France, thanks to the delivery of major contracts put in
place with the health authorities to measure and understand the
evolution of the pandemic and its impact on Society and on
people.
Overall in 2020, Ipsos generated €1,349.6 million in mature
markets, down 2.5% on 2019. These markets account for 73% of total
revenue. In emerging markets, Ipsos posted revenue of €487.9
million, down 15% year-on-year. Emerging markets, which accounted
for up to 35% of revenue in 2014, only accounted for 27% in 2020
due to more volatile growth rates and weakening exchange rates
against the euro.
PERFORMANCE BY
AUDIENCE
In millions of euros |
2020 revenue |
Contribution |
Total growth 2020 / 2019 |
Organic growth |
Consumers1 |
765.2 |
42% |
(15.2)% |
(12.5)% |
Clients and employees2 |
407.7 |
22% |
(20.9)% |
(21)% |
Citizens3 |
356.5 |
19% |
27.7% |
29.5% |
Doctors and patients4 |
318.0 |
17% |
1.3% |
4% |
Annual revenue |
1,837.4 |
100% |
(8.3)% |
(6.5)% |
Breakdown of Service Lines by audience segment:1- Brand Health
Tracking, Creative Excellence, Innovation, Ipsos UU, Ipsos MMA,
Market Strategy & Understanding, Observer (excl. public
sector), Social Intelligence Analytics2- Automotive & Mobility
Development, Audience Measurement, Customer Experience, Channel
Performance (including Retail Performance and Mystery Shopping),
Media development3- Public Affairs, Corporate Reputation4- Pharma
(quantitative and qualitative)
By audience, the changes were also positive over the year. A
steady improvement in revenue can be seen across all audiences.
“Consumers”, which accounts for 42% of revenue, was down 19% on
an organic basis at June 30. It stood at 17% at September 30 and
12.5% at December 31.
“Clients and employees” accounts for 22% of revenue. Here
improvement was slower. Revenue was down 21% on an organic
basis at June 30 and 22.5% at September 30. The decline stood at
21% at December 31. The weight of certain sectors that are heavily
impacted by the Covid-19 pandemic continues to be heavy. Car
manufacturers, airlines and hotel chains, amongst others, are the
losers in 2020. Ipsos is suffering the consequence effecting this
segment.
“Doctors and patients” accounted for 17% of revenue in 2020 and
is growing rapidly. Ipsos revenue on an organic basis was down 5.5%
at June 30. It returned to positive territory in Q3, at +1%,
closing the year at +4%. Pharmaceutical companies represent the
main clientele in this segment. Following a very sharp fall-off in
their orders at the start of the pandemic, they reassessed their
needs and initiated many research studies, both related and
unrelated to the epidemic.
Finally, “Citizens” performed well throughout the year. In 2020,
it accounted for 19% of revenue, 6 points more than in 2019.Of the
total contracts dedicated to this audience, organic growth was
11.5% at end of June, 27% at end of September and 29.5% at end of
December.
Ipsos benefited in this segment from the belief expressed for
many years now that social research and studies on the state and
evolution of public opinion represents a serious long-term project
that calls for specific capabilities and expertise not only within
the teams but also in terms of the sourcing and analysis of
information that Ipsos is one of the few global players in the
market to possess.
This expertise is clearly highly complementary with that
employed for other “audiences”. It is the same people who are being
surveyed, in turn or at the same time, citizens / consumers /
clients / patients, even if the means and protocols used differ
across audiences. There are inter-connections here that Ipsos is
able to identify and understand.
FINANCIAL
PERFORMANCE
Summary income statement
In millions of euros |
2020 |
2019 |
Change 2020 / 2019 |
Revenue |
1,837.4 |
2,003.3 |
(8.3)% |
Gross margin |
1,180.5 |
1,288.5 |
(8.4)% |
Gross margin / revenue |
64.2% |
64.3% |
- |
Operating margin |
189.9 |
198.7 |
(4.5)% |
Operating margin / revenue |
10.3% |
9.9% |
- |
Other non-recurring income and expense |
(6.1) |
(16.4) |
- |
Finance costs |
(20.6) |
(26.6) |
(22.8)% |
Other finance costs |
(8.1) |
(7.3) |
11.0% |
Income tax |
(38.9) |
(36.9) |
5.5% |
Net profit attributable to owners of the parent |
109.5 |
104.8 |
4.5% |
Adjusted net profit* attributable to owners of the
parent |
129.6 |
129.5 |
0.1% |
*Adjusted net profit is calculated before (i) non-cash items
related to IFRS 2 (share-based compensation), (ii) amortization of
acquisition-related intangible assets (client relations), (iii) the
impact net of tax of other non-recurring income and expense, (iv)
the non-monetary impact of changes in puts in other financial
income and expenses and (v) deferred tax liabilities related to
goodwill for which amortization is deductible in some countries
Commentary on the income statement
Overall, the Group’s 2020 profitability was up
close to 40 basis points year-on-year, with an operating margin of
10.3% compared with 9.9% in 2019.
This performance is all the more remarkable in that at mid-year
it was down 230 basis points as a result of the sudden fall in
revenue from mid-March. The suddenness of this fall meant that we
were not able to cut our costs to the same extent in the first half
because they are partly fixed and were scaled for the growth
expected up to that point for 2020.
The various cost reduction measures put in place made it
possible to make up for this reduced margin in the second half, all
the more so in that the pandemic accentuated the seasonality
effect, with 43% of annual revenue recognized in the first half and
57% in the second half.It should be recalled that the market
research space has traditionally been highly seasonal with revenue
skewed to the second half as contracts are performed. Accordingly,
the revenue recognized in the first half typically represents -
using the average from recent years - around 45% of annual revenue
(on a like-for-like basis). Conversely, in terms of operating
expenses, costs are recognized in the income statement in almost a
linear pattern over the year.
The company achieved and even exceeded the plan for €109 million
in cost reductions announced in July over full-year 2020 (including
approximately €42 million in payroll – plus €29 million in
government subsidies - and approximately €38 million in overheads).
Overall, €113 million was saved, including €46 million in the first
half and €67 million in the second half.By category, these savings
came from costs of personnel (€43 million), government subsidies
(€29 million) and general operating expenses (€41 million).
The gross margin (calculated by deducting
direct variable and external costs incurred in performing contracts
from revenue) is stable at 64.2% compared with 64.3% in 2019. On a
like-for-like basis, it would have been exactly 64.3%.
The evolution of the gross margin ratio is to be
linked to the mix of data collection modes, bearing in mind that
some face-to-face survey sites (with lower gross margin rates),
which were shut down during the first lockdown, were replaced in
some cases by online surveys with higher gross margins. That said,
the most important contracts for monitoring the evolution of the
pandemic were carried out by the "Public Affairs" teams in a
certain number of countries, face to face. In total in 2020, online
surveys represent 60% of the activity compared to 55% in 2019.
Regarding operating costs, payroll is down
4.4%, due to the combined effects of a reduction in the workforce
and various wage reduction mechanisms.The permanent workforce was
16,644 people at the end of December 2020 compared to 18,448 at the
end of December 2019, i.e. a drop of 9.8% which occurred from the
second quarter onwards, due to the implementation of the hiring and
replacement freeze.
The wage reduction mechanisms (simple voluntary and temporary
wage reductions agreed to by a certain number of employees, ranging
from 10% to 20% for senior managers; reduction of working hours;
unpaid leave; etc.) represented savings of around 17 million Euros
between mid-March and the end of the year.
The item "Staff costs - excluding share-based compensation" also
recognizes a provision for bonuses to be paid for the 2020
financial year which is higher than that of 2019 by around 20
million Euros, for two reasons: on the one hand, the Group achieved
a better operating margin than in 2019 and, on the other hand, it
is planned to offset the voluntary wage reductions (granted without
reduction of hours worked) for approximately €9 million.
The cost of variable share-based compensation
is up to €8.7 million compared to €6.9 million in 2019 because the
transition of the vesting period for free share plans from 2 to 3
years, decided in 2018, had the effect of extending the IFRS2
charge. On a normalized basis, this expense will be slightly more
than €10 million in 2021.
Overheads are under control and are down by
approximately €45 million (-20.7%), due to the limitation of a
number of discretionary expenditure items and, in particular, with
the cessation of travel (for €21 million) and savings in relation
to the use of offices (for €7 million).
"Other operating income and expenses" shows a
positive balance of €16.4 million (compared to -€1 million in
2019). It essentially incorporates two new elements to be linked to
the pandemic: on the one hand, subsidies received under the
short-time working schemes set up by the governments of certain
countries (Germany, Australia, Canada, China, France and Hong Kong
in particular) in the amount of €29 million over the year; on the
other hand, redundancy costs specifically linked to the
under-activity for €7 million.
Below the operating margin, the amortization of
intangible assets related to acquisitions concerns the
portion of goodwill allocated to customer relations during the 12
months following the date of acquisition and was amortized in the
income statement under IFRS over several years. This allocation
amounts to €5.4 million compared to 5.2 million previously.
The balance of other non-current and
non-recurring income and expenses
amounted to -€6.2 million compared to -€16.4 million last year. It
takes into account elements of an unusual nature or not related to
operations.
In 2019, these expenses included acquisition costs for €2.4
million as well as costs related to restructuring plans for €7.9
million in connection with the end of the implementation of the TUP
("Total Understanding Project") program and the integration of GfK
Research.
In 2020, these expenses included acquisition costs of €0.8
million related to the Maritz Mystery Shopping and Askia operations
carried out at the end of January and, above all, reorganization
and streamlining costs of €14.3 million compared with €24.6 million
in 2019, which was impacted by numerous internal reorganizations
with the implementation of the new TUP structure.
On the income side, this item mainly recorded a net income of
€8.9 million linked to the decision to capitalize internal
development costs since January 2018 (this net income was €11.8
million in 2019). It should be noted that until now, the Group only
capitalized external development costs when the conditions defined
in its accounting policies were met. Following the improvement of
its internal monitoring system, Ipsos has been able to capitalize
its internal development costs, which are made up of the personnel
costs of its teams working on its platforms and projects, under the
same conditions. This decision has enabled a better understanding
of the total costs of the Research & Development efforts
undertaken by Ipsos. It resulted in a change in accounting
estimates of amounts that are now capitalized. In accordance with
IAS 8, the prospective method has been applied as from January 1,
2018 to recognize these impacts in the income statement. In order
to avoid distorting the operating margin due to the recognition of
a capitalization income not offset by depreciation during the first
years of implementation of this change in accounting estimates, the
positive effects on operating profit of this first period of
recognition of intangible assets have been classified under "Other
non-current and non-recurring expenses and income", below the
operating margin. It was decided in 2018 that the same treatment
would be applied over the next four years, with a positive effect
on the income statement that would decrease each year until the
implementation of capitalization reaches cruising speed in 2022,
taking into account a general depreciation period of five years for
this type of asset.
Financing expenses. The net interest expense
amounted to €20.6 million compared with €26.6 million, due not only
to a significant reduction in financial debt in connection with
good cash generation, but also to the repayment at the end of
September of a tranche of a USD 185 million "USPP" private bond
issue that carried a 5% coupon and was replaced by financing at
lower rates.
Taxes. The effective tax rate on the IFRS
income statement was 26.1% compared to 25.9% last year. It includes
a deferred tax liability of €3.5 million, which cancels out the tax
savings achieved through the tax deductibility of goodwill
amortization in certain countries, even though this deferred tax
expense would only be due in the event of the disposal of the
activities concerned (and is therefore restated in adjusted net
profit).
Net Income, Group share, was €109.5 million
compared to €104.8 million in 2019, an increase of 4.5%.
Adjusted net Income, Group share, which is the
relevant and constant indicator used to measure performance, was
€129.6 million compared to €129.5 million in 2019, i.e. an increase
of 0.1%. The group will therefore have achieved its objective of
preserving its margins despite the pandemic.
Financial structure
Cash flow. Cash flow was stable and stood at
€262.1 million compared to 266.4 million in 2019.
In contrast, the generation of free cash flow, at €265 million,
reached a record. It was in line with forecasts for the first
quarter, due to the good level of sales at the end of 2019 and the
beginning of 2020, which materialized in collections during the
first half of the year.
This was combined with the decline in business after mid-March,
which was accompanied by a €79 million decrease in trade
receivables at December 31, 2020. In total, working capital
requirement showed a positive change of €134.6 million in 2020.
Current investments in tangible and intangible fixed assets are
mainly made up of IT investments and amounted to €35.1 million in
the first half, compared with €43.2 million in the previous
year. As regards non-current investments, Ipsos invested
around €22 million, notably through two acquisitions: Maritz
Mystery Shopping and Askia. These two companies were included in
the consolidated financial statements as of February 1, 2020.
Shareholders' equity stood at €1,121 million at
December 31, 2020 compared to 1,122 million published at December
31, 2019.
Net financial debt stood at
€346.5 million Euros, down significantly compared to December 31,
2019 (€578.4 million). The net debt ratio fell to 30.9% compared
with 51.5% at December 31, 2019. The leverage ratio (calculated
excluding the impact of IFRS 16) was 1.6 times EBITDA (compared
with 2.4 times at December 31, 2019); this type of level had not
been achieved since 2010.
Cash position. Cash and cash equivalents at the
end of the year stood at a record level of €216.0 million at
December 31, 2020 compared with €165.4 million at December 31,
2019, ensuring a good cash position for Ipsos.
The group also has more than €400 million of credit lines
available for more than one year, allowing it to meet its debt
maturities of 2021.
In view of this strong position, a proposal will be made to the
General Meeting of Shareholders to be held on May 27, 2021 to
distribute a dividend of 90 cents per share for
the 2020 financial year, i.e. double the 45-cent dividend paid on
July 3, 2020 for the 2019 financial year (which had been halved
compared to the 89 cents per share initially envisaged in February
2020).
OUTLOOK FOR 2021
For Ipsos, the opening months of 2021 were in line with the
closing months of 2020.
Average business performance is positive, both in terms of the
order book and revenue, even if these indicators show very mixed
performances across regions, audiences and business sectors.
The pandemic isn’t over. The short and long-term consequences of
this crisis on Society and markets are the subject of much
debate.
Who knows if we will see renewed inflationary pressures,
resulting in significantly higher interest rates or if, on the
contrary, by saving, households and perhaps businesses too will
leave governments on their own to try and prevent a major social,
economic and financial crisis.
Who knows if, as it mutates, Covid-19 won’t become Covid-20 and
once more disrupt our ability to work, consume and invest with
sufficient energy and confidence.
Who knows if, in response to being considered weak, governments
won't look to employ authoritarian practices that will cripple the
ideals that in the West at least gave rise to opportunities without
which the technology and social models - that underpin the relative
global prosperity as it is - could never have developed.
We must also be mindful of other major issues, such as
environmental degradation, climate change and the undermining of
privacy mechanisms when assessing the position of Ipsos in the
creation, analysis and distribution of information.
The environment creates increasingly strong growth opportunities
for Ipsos. Our target market is clearly essential. No business or
institution can any longer rely on what it knew about yesterday.
Clearly, knowledge and experience drawn from the past are useful
but are not enough. The products and services of the future share
little with today's. The means of engaging with and influencing
people are different to what they were five years ago and perhaps
even to last year.
In 2020, Ipsos showed resilience and agility. We are delighted
to have been able, within a few short months, to once again achieve
strong revenue levels and to tighten our belts, without impacting
efficiency and quality. The company also generated an unprecedented
level of cash, which underpins our ability to invest and properly
reward our shareholders and our teams.
We are proud to have managed to improve our relationship with
our clients, which have never been so numerous, to set ourselves
apart from our competitors and recognize the quality of our
services. In the ongoing global survey we do following each project
we deliver, the average rating received by our teams is 9 out of
10. This is the highest average ever thanks, obviously, to a higher
proportion of 9s and 10s than all the other ratings from 0 (never
happens) to 8 (pretty common). Let’s not forget that these ratings
reflect the quality of the work undertaken by our teams working in
90 different markets, with 5,000 clients entrusting us with tens of
thousands of programs, some of which are billed €10,000 whilst
others are billed millions of euros. This performance is a
demonstration of the resilience of Ipsos and of its ability to
perform well in the most volatile and, to be honest, challenging
market environments.
Clearly, just being resilient isn't enough. Ipsos is a serious,
integrated company that is respectful of the markets in which it
operates, committed to an ambitious sustainable development policy,
making progress on its inclusion, diversity and gender equality
goals. Ipsos wants to maintain its independence and its ability to
operate over a time horizon that day-by-day allows it to build a
company that retains the confidence of its customers and is able to
attract both fresh talent and new opportunities.
Agility is the other essential ingredient in achieving this
goal. In 2020, Ipsos was able, within just a few months, to
overhaul its solutions and promote new offerings that were made
possible by drawing on technology and systems in which it didn’t
have the necessary expertise a mere two years ago.
In 2021, and over the coming years, Ipsos will actively promote
various platforms that make it possible to produce and analyze with
greater speed and flexibility large quantities of data.
Various initiatives will allow Ipsos to quickly acquire or
accelerate its growth in new areas of expertise: automatic data
collection, data integration, predictive analytics, simplification
of protocols that allow for increased use of AI and contextual
analytical systems for unstructured data.
Thanks to this, new services will easily exceed 20% of revenue
at Ipsos in 2021, as against 7% in 2015, 15% in 2019 and 19% in
2020.
If the health picture doesn’t see a further major deterioration
globally, Ipsos should be able to post higher like-for-like revenue
in 2021 than in 2020. It should be around 2019 levels, without it
being possible to give a more accurate prediction at this
point.
The operating margin will rise. The extent of its improvement
will obviously depend on the company’s revenue levels and also a
renewed balance across its units (regions and audiences).
***Full-year results
presentation
The presentation of the 2020 annual results will take place via
webcast at 8.30AM CET on Thursday, February 25, and at 4PM CET
via conference call. If you wish to register, please contact
ipsoscommunications@ipsos.com
A replay will also be available on our website
Appendices
- Consolidated income statement
- Statement of financial position
- Consolidated cash flow statement
- Consolidated statements of changes in equity
The complete consolidated financial statements as of December,
31st 2020 are also available on our website
ABOUT IPSOS
Ipsos is the third largest market research company globally,
operating in 90 markets and employing over 16,000 people.
Our passionately curious research professionals, analysts and
scientists have built unique multi-specialist capabilities that
provide true understanding and powerful insights into the actions,
opinions and motivations of citizens, consumers, patients,
customers or employees. Our 75 business solutions are based on
primary data from our surveys, social media monitoring, and
qualitative or observational techniques.
“Game Changers” – our tagline – summarizes our ambition to help
our 5,000 clients navigate with confidence our rapidly changing
world.
Founded in France in 1975, Ipsos has been listed on the Euronext
Paris since July 1, 1999. The company is part of the SBF 120 and
the Mid-60 indexes and is eligible for the Deferred Settlement
Service (SRD).ISIN code FR0000073298, Reuters ISOS.PA, Bloomberg
IPS:FP www.ipsos.com
Consolidated income statement Annual
financial statements for the year ended December 31,
2020
In thousands of euros |
12/31/2020 |
12/31/2019 |
Revenue |
1,837,424 |
2,003,255 |
Direct
costs |
(656,902) |
(714,791) |
Gross profit |
1,180,522 |
1,288,464 |
Employee benefit expenses – excluding
share-based payments |
(824,709) |
(862,948) |
Employee benefit expenses - share-based
payments* |
(8,730) |
(6,924) |
General operating expenses |
(173,639) |
(218,902) |
Other operating income and expenses |
16,408 |
(995) |
Operating margin |
189,852 |
198,696 |
Amortization of intangible assets
identified on acquisitions* |
(5,409) |
(5,160) |
Other non-operating income and expenses
* |
(6,153) |
(16,381) |
Share of
profit/(loss) of associates |
(711) |
(615) |
Operating profit |
177,579 |
176,539 |
Finance costs |
(20,576) |
(26,637) |
Other
financial income and expenses |
(8,131) |
(7,328) |
Net profit before tax |
148,872 |
142,574 |
Income tax – excluding deferred tax on
goodwill amortization |
(35,462) |
(34,539) |
Deferred tax on goodwill
amortization* |
(3,457) |
(2,339) |
Income tax |
(38,919) |
(36,878) |
Net profit |
109,953 |
105,695 |
Attributable to the owners of the
parent |
109,498 |
104,785 |
Attributable to non-controlling interests |
455 |
910 |
Basic earnings per share [attributable to
the owners of the parent] (in €) |
2.49 |
2.39 |
Diluted
earnings per share [attributable to the owners of the parent] (in
€) |
2.43 |
2.32 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted earnings* |
130,166 |
130,719 |
Attributable to the owners of the parent |
129,612 |
129,519 |
Attributable to non-controlling interests |
554 |
1,200 |
Adjusted
basic earnings per share, attributable to the owners of the
parent |
2.94 |
2.95 |
Adjusted diluted earnings per share, attributable to the owners of
the parent |
2.88 |
2.87 |
Statement of financial position
Annual financial statements for the year ended December
31, 2020
In thousands of euros |
|
12/31/2020 |
12/31/2019 |
|
ASSETS |
|
|
|
|
Goodwill |
|
1,249,331 |
1,322,906 |
|
Right-of-use assets |
|
125,270 |
152,646 |
|
Other intangible assets |
|
88,849 |
89,076 |
|
Property, plant and equipment |
|
30,953 |
39,753 |
|
Investments in associates |
|
1,856 |
1,114 |
|
Other non-current financial assets |
|
51,139 |
44,766 |
|
Deferred
tax assets |
|
28,839 |
25,300 |
|
Non-current assets |
|
1,576,238 |
1,675,561 |
|
Trade receivables |
|
456,113 |
518,697 |
|
Contract assets |
|
136,365 |
203,094 |
|
Current tax |
|
12,511 |
14,833 |
|
Other current assets |
|
76,089 |
92,846 |
|
Financial derivatives |
|
404 |
(1,094) |
|
Cash and
cash equivalents |
|
215,951 |
165,436 |
|
Current assets |
|
897,433 |
993,812 |
|
TOTAL ASSETS |
|
2,473,670 |
2,669,372 |
|
In thousands of euros |
|
12/31/2020 |
12/31/2019 |
|
EQUITY AND
LIABILITIES |
|
|
|
|
Share capital |
|
11,109 |
11,109 |
|
Share premium account |
|
515,854 |
516,000 |
|
Treasury shares |
|
(9,738) |
(12,382) |
|
Other reserves |
|
662,277 |
580,314 |
|
Translation adjustments |
|
(185,192) |
(96,352) |
|
Net
profit, attributable to the owners of the parent |
|
109,498 |
104,785 |
|
Equity, attributable to the owners of the
parent |
|
1,103,809 |
1,103,475 |
|
Non-controlling interests |
|
18,157 |
19,247 |
|
Equity |
|
1,121,966 |
1,122,722 |
|
Borrowings and other non-current
financial liabilities |
|
393,654 |
561,490 |
|
Non-current lease liabilities |
|
107,250 |
133,112 |
|
Non-current provisions |
|
1,743 |
762 |
|
Provisions for post-employment benefit
obligations |
|
32,862 |
33,058 |
|
Deferred tax liabilities |
|
60,503 |
72,196 |
|
Other
non-current liabilities |
|
23,660 |
14,980 |
|
Non-current liabilities |
|
619,673 |
815,599 |
|
Trade payables |
|
292,382 |
300,681 |
|
Borrowings and other current financial
liabilities |
|
169,250 |
181,229 |
|
Current liabilities on leases |
|
36,913 |
41,971 |
|
Current tax |
|
22,239 |
16,273 |
|
Current provisions |
|
7,073 |
9,025 |
|
Contract liabilities |
|
39,513 |
34,594 |
|
Other
current liabilities |
|
164,661 |
147,278 |
|
Current liabilities |
|
732,031 |
731,051 |
|
TOTAL LIABILITIES |
|
2,473,670 |
2,669,372 |
|
Consolidated cash flow statement
Annual financial statements for the year ended December
31, 2020
In thousands of euros |
12/31/2020 |
12/31/2019 |
OPERATING ACTIVITIES |
|
|
NET
PROFIT |
109,953 |
105,695 |
Non-cash
items |
|
|
Amortisation and depreciation of
property, plant and equipment and intangible assets |
78,232 |
75,199 |
Net profit of equity-accounted companies,
net of dividends received |
711 |
636 |
Losses/(gains) on asset disposals |
152 |
323 |
Net change in provisions |
1,642 |
5,889 |
Share-based payment expense |
8,458 |
6,604 |
Other non-cash income/(expenses) |
(1,669) |
1,028 |
Acquisition costs of consolidated
companies |
770 |
2,383 |
Finance costs |
24,918 |
31,750 |
Tax expense |
38,919 |
36,878 |
CASH FLOW FROM OPERATIONS BEFORE TAX AND FINANCE
COSTS |
262,085 |
266,386 |
Change in working capital
requirement |
134,594 |
(52,676) |
Income tax paid |
(27,761) |
(35,854) |
NET CASH FROM OPERATING ACTIVITIES |
368,919 |
177,855 |
INVESTING ACTIVITIES |
|
|
Acquisitions of property, plant and
equipment and intangible assets |
(35,069) |
(43,232) |
Proceeds from disposals of property,
plant and equipment and intangible assets |
285 |
81 |
(Increase)/decrease in financial
assets |
(713) |
3,187 |
Acquisitions of consolidated activities
and companies, net of acquired cash |
(13,230) |
(5,435) |
CASH FLOW FROM INVESTING ACTIVITIES |
(48,727) |
(45,400) |
FINANCING ACTIVITIES |
|
|
Share capital increases/(reductions) |
- |
- |
Net (purchases)/ sales of treasury
shares |
2,542 |
1,324 |
Increase in long-term borrowings |
78,406 |
62 |
Decrease in long-term borrowings |
(245,176) |
(5,160) |
Increase in long-term borrowings from
associates |
(8,841) |
(12,284) |
Increase/(decrease) in bank
overdrafts |
464 |
(1,467) |
Net repayment of lease liabilities |
(41,671) |
(40,231) |
Net interest paid |
(22,164) |
(25,367) |
Net interest paid on lease
obligations |
(4,455) |
(4,508) |
Acquisitions of non-controlling
interests |
(164) |
(10,935) |
Dividends paid to the owners of the
parent |
(19,771) |
(38,649) |
Dividends paid to non-controlling
interests in consolidated companies |
|
- |
NET CASH FROM FINANCING ACTIVITIES |
(260,469) |
(137,215) |
NET CHANGE IN CASH AND CASH EQUIVALENTS |
59,722 |
(4,760) |
Impact of foreign exchange rate
movements |
(9,207) |
(2,362) |
CASH AND CASH EQUIVALENTS AT THE BEGINNING OF THE
PERIOD |
165,436 |
167,834 |
CASH AND CASH EQUIVALENTS AT THE END OF THE
PERIOD |
215,951 |
165,436 |
Consolidated statement of changes in equity
Annual financial statements for the year ended December
31, 2020
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity |
|
|
In thousands of euros |
Share capital |
Additional paid-in capital |
Own shares |
Other reserves |
Translation adjustments |
Attributable to the owners of the parent |
Non-controlling interests |
Total |
|
Position at January 1, 2019 |
11,109 |
516,038 |
(22,723) |
633,697 |
(121,475) |
1,016,646 |
18,314 |
1,034,960 |
|
Impact of the
first-time application of IFRS 15 |
- |
- |
- |
(9,488) |
- |
(9,488) |
(44) |
(9,532) |
|
Change in share
capital |
- |
- |
- |
- |
- |
- |
- |
- |
|
Dividends paid |
- |
- |
- |
(38,327) |
- |
(38,327) |
0 |
(38,327) |
|
Effects of
acquisitions and commitments to buy out non-controlling
interests |
- |
- |
- |
105 |
- |
105 |
73 |
177 |
|
Delivery of
treasury shares under the bonus share plan |
- |
- |
9,162 |
(9,162) |
- |
- |
- |
- |
|
Other movements on
own shares |
- |
(38) |
1,179 |
181 |
- |
1,322 |
- |
1,322 |
|
Share-based
payments taken directly to equity |
- |
- |
- |
6,604 |
- |
6,604 |
- |
6,604 |
|
Other
movements |
- |
- |
- |
(1,970) |
- |
(1,970) |
(357) |
(2,327) |
|
Transactions with the shareholders |
- |
(38) |
10,341 |
(42,569) |
- |
(32,266) |
(285) |
(32,551) |
|
Net
profit |
- |
- |
- |
104,785 |
- |
104,785 |
911 |
105,695 |
|
Other comprehensive
income |
- |
- |
- |
- |
- |
- |
- |
- |
|
Net investment in a
foreign operation and related hedges |
- |
- |
- |
- |
15,610 |
15,610 |
(69) |
15,541 |
|
Deferred tax on net
investment in a foreign operation |
- |
- |
- |
- |
(4,267) |
(4,267) |
- |
(4,267) |
|
Change in
translation adjustments |
- |
- |
- |
- |
13,781 |
13,781 |
419 |
14,200 |
|
Re-evaluation of
net liability (asset) in respect of defined benefit plans |
- |
- |
- |
(1,710) |
- |
(1,710) |
- |
(1,710) |
|
Deferred tax on
actuarial gains and losses |
- |
- |
- |
385 |
- |
385 |
- |
385 |
|
Total other
comprehensive income |
- |
- |
- |
(1,325) |
25,124 |
23,799 |
350 |
24,149 |
|
Comprehensive income |
- |
- |
- |
103,460 |
25,124 |
128,584 |
1,261 |
129,844 |
|
Position at December 31, 2019 |
11,109 |
516,000 |
(12,382) |
685,100 |
(96,352) |
1,103,475 |
19,247 |
1,122,722 |
|
|
|
|
|
|
|
Equity |
|
|
|
In thousands of euros |
Share capital |
Additional paid-in capital |
Own shares |
Other reserves |
Translation adjustments |
Attributable to the owners of the parent |
Non-controlling interests |
Total |
|
Position at
January 1, 2020 |
11,109 |
516,000 |
(12,382) |
685,100 |
(96,352) |
1,103,475 |
19,247 |
1,122,722 |
|
Change in share capital |
- |
- |
- |
- |
- |
- |
- |
- |
|
Dividends paid |
- |
- |
- |
(19,771) |
- |
(19,771) |
(15) |
(19,786) |
|
Effects of
acquisitions and commitments to buy out non-controlling
interests |
- |
- |
- |
(8,443) |
- |
(8,443) |
(705) |
(9,148) |
|
Delivery of
treasury shares under the bonus share plan |
- |
- |
- |
- |
- |
- |
- |
- |
|
Other movements in
own shares |
- |
(146) |
2
638 |
50 |
- |
2,542 |
- |
2,542 |
|
Share-based
payments taken directly to equity |
- |
- |
- |
8,458 |
- |
8,458 |
- |
8,458 |
|
Other
movements |
- |
- |
- |
(3,089) |
- |
(3,089) |
166 |
(2,923) |
|
Transactions with the shareholders |
- |
(146) |
2,638 |
(22,796) |
- |
(20,304) |
(554) |
(20,858) |
|
Net
profit |
- |
- |
- |
109,498 |
- |
109,498 |
455 |
109,953 |
|
Other comprehensive
income |
- |
- |
- |
- |
- |
- |
- |
- |
|
Net investment in a
foreign operation and related hedges |
- |
- |
- |
- |
(32,412) |
(32,412) |
440 |
(31,971) |
|
Deferred tax on net
investment in a foreign operation |
- |
- |
- |
- |
8,699 |
8,699 |
- |
8,699 |
|
Change in
translation adjustments |
- |
- |
- |
- |
(65,419) |
(65,119) |
(1,432) |
(66,551) |
|
Re-evaluation of
net liability (asset) in respect of defined benefit plans |
- |
- |
- |
(203) |
|
(203) |
- |
(203) |
|
Deferred tax on
actuarial gains and losses |
- |
- |
- |
175 |
- |
175 |
- |
175 |
|
Total other
comprehensive income |
- |
- |
- |
(28) |
(88,832) |
(88,860) |
(992) |
(89,852) |
|
Comprehensive income |
- |
- |
- |
109,470 |
(88,832) |
20,638 |
(536) |
20,101 |
|
Position at December 31, 2020 |
11,109 |
515,854 |
(9,738) |
771,776 |
(185,192) |
1,103,809 |
18,157 |
1,121,966 |
|
- Ipsos Full Year Results 2020
Ipsos (EU:IPS)
Graphique Historique de l'Action
De Mar 2024 à Avr 2024
Ipsos (EU:IPS)
Graphique Historique de l'Action
De Avr 2023 à Avr 2024