(BFM Bourse) – How far will the insolent growth of SES-imagotag stop? The title of the world leader in electronic labels recorded a new historic record on the stock market on Friday at the announcement of a spectacular third quarter. Backed by an impressive order book, the group confirms its revenue targets for this year and has a solid roadmap for 2023.
SES-imagotag impresses once again. The specialist in smart labels for physical stores posted an insolent growth of 107.9% in the third quarter. That is to say sales more than doubled to stand out at the “record level” of 181.8 million euros between July and September.
This high-flying performance hit the mark. For the first time in its history, the price of SES-imagotag exceeded the threshold of 110 euros on Friday with a historic peak of 113.20 euros. The action of the world leader in the electronic labeling of articles in the world of physical commerce has gained more than 40% since the beginning of the year and even… more than 1000% over the last ten years.
In detail, turnover on the Old Continent amounted to 138.3 million euros, up 121.7%. In the third quarter, SES-imagotag’s activity was notably driven by the acceleration of deployments in Germany and by still dynamic activity in France and Southern Europe.
In the rest of the world, third quarter sales increased by 73.5% compared to the previous year, to 43.5 million euros. The group was able to capitalize on the dynamism of its business in North America, the region which once again recorded the fastest growth. At the start of the year, the group achieved a major coup across the Atlantic with the expansion of its partnership with retail giant Walmart.
Over nine months, the growth in activity is just as impressive. Cumulative sales also stand at a “record level” of 467.7 million euros, an increase of 61.1% since the start of the year compared to the same period in 2021.
“Record after record SES-imagotag once again demonstrates the real underlying dynamic that drives society and its market today, with in-depth digitalization being a crucial issue for Retail players (physical distribution)”, underlines Louis-Marie de Sade, analyst at EuroLand Corporate. This third quarter achieved by SES-imagotag is quite simply “spectacular” for the analyst.
Strong growth in value-added services
SES Imagotag is also counting on the continued penetration of value-added services such as Captana, its shelf monitoring solution. For example, it allows retailers to report supply gaps on the shelves, for example, or to capture in real time the movements of customers in the store. “After having demonstrated its ability to have its electronic labels adopted by Retail players, SES-imagotag has been rolling out its roadmap for the adoption of its Value Added Services (VAS) for its customers for several quarters” adds the analyst .
Over the quarter, these posted growth of 62.6% to 27 million euros, i.e. a total of 72 million euros over 9 months and 15.5% of the group’s overall turnover. HIS Imagotag. “Offering recurrence and significant margins, these technological solutions suggest a real lever on margins” recalls Louis-Marie de Sade. Long-term, HIS Imagotag expects the revenue growth rate of these value-added services to continue “to outpace that of labels”.
Despite the complex geopolitical context and the adverse effects of inflation, SES-imagotag’s order book and commercial pipeline are both at an all-time high. Order intake for the third quarter of 2022 increased by 16%, to 162 million euros. Growth over the 9-month period was 22% at 547 million euros. Over the last 12 months, new orders have amounted to 700 million euros, which has enabled the group to cross the symbolic bar of 2 billion euros over the last 12 quarters.
Rapid growth at the top of the gondola
Benefiting from a record level of activity and an order book at a historically high level, SES-Imagotag declares that it remains “confident in its ability to deliver worldwide growth with an annual turnover of more than 600 million euros. euros and to pursue its dynamic of continuous improvement in profitability.”
For 2023, SES-Imagotag remains optimistic. The group specifies that its order book and the confirmed contracts currently under contractual negotiation already cover more than 80% of its objective of 800 million euros for 2023. It also confirms that in 2023 it expects a new improving its profitability. . “With order intake reaching 700 million euros over 12 months and more than 2 billion euros over the last 12 quarters, and a commercial pipeline at its highest, we benefit from strong visibility on our ability to reach our target of €800 million in revenue for next year”, Thierry Gadou, Chairman and CEO of SES-imagotag.
“The management once again demonstrates its vision as well as its excellent operational management” points out EuroLand Corporate, which maintains its buy recommendation while raising its target price to 127 euros after today’s publication.
Sabrina Sadgui – ©2022 BFM Bourse