(AOF) – DMS Group reduced its net loss from 8.9 million euros in 2022 to 5 million euros in 2023. Its turnover increased by 20% to 42.2 million euros against 35.3 million in 2022. Ebitda, on the other hand, fell from 2 million to 1.7 million and the Ebitda margin from 5.6% to 4%. The specialist in high-performance medical imaging systems for digital radiology announces a “healthy and balanced” financial situation with shareholders’ equity of 13.7 million euros and available cash of 4.7 million euros as of the 1st December 2023.
In addition, the group recorded a turnover of 9.9 million euros for the first quarter of the current financial year. It is stable compared to the previous year and in line with its roadmap.
DMS Group confirms its recently raised objectives as part of its #Imaging 2027 strategic plan, namely 70 million euros in turnover, associated with an EBITDA margin of 10 million by 2027.
In 2024, DMS Group sets itself the objective of a significant increase in its gross margin of 2 to 3% and the implementation of structuring projects to strengthen the group’s profitability while maintaining business growth.
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Concerns remain
According to the Federation of Specialized Trade, Procos, in October 2022, activity fell by 1.5% year-on-year. However, the activity of beauty and health (+ 5.2%) and specialized food (+ 3.5%) are dynamic compared to October 2021. Attendance at points of sale was very impacted by the problems fuel and unfavorable weather. Compared to October 2019, a pre-covid year, the drop in attendance is very sharp (-20.9% in October). Shopping centers and the outskirts are more impacted than city centers with a gap of four to five points.
There are several reasons for concern for the future. The players are experiencing a very significant jaws effect given the increase in their operating costs while the evolution of demand is very uncertain. Very few brands can pass on the increase in their costs in sales prices. The federation therefore asks, among other things, to limit the indexation of the Commercial Rent Index to + 3.5% for the rents of all companies in 2023. It also invokes an absolute emergency: cap the price of energy for 2023 and retroact on contracts already signed to prevent the rate of failures from accelerating.
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Oncology, priority of pharmaceutical giants
Sanofi’s stock market disappointment recorded at the end of October 2023 underlines the new direction for the group, which has now set oncology as its number 1 priority. Efforts in this segment, where therapies are advancing the fastest, notably involve investments in R&D which weigh on profitability. Sanofi therefore announced a drop in its earnings per share in 2024 and the abandonment of its objective of an operating margin of 32% in 2025. Merck has just unveiled a new alliance. It will pay up to $22 billion to the Japanese group Daiichi Sankyo as part of a partnership on experimental cancer treatments. While some experts estimate that the United States represents nearly half of global oncology spending (drugs and treatments), or $196 billion in 2022, Chinese spending in this area has more than doubled in five years, going from 5 to 11.8 billion dollars.