(Boursier.com) — The distributor of medical equipment Euromedis experienced a second half of 2021 marked by a sharp slowdown in activity. Its turnover amounted to only 40 ME against 71.9 ME in the first half, i.e. a total turnover of 111.9 ME for the 2021 financial year against 193.4 ME in 2020. Consolidated EBITDA for the second half of 2021 stands at -4.1 ME against 10.5 ME in the first half of 2021 to stand at 6.4 ME for the 2021 financial year (33.5 ME in 2020). The net income group share stands at 2.3 ME for the 2021 financial year against 22.7 ME in 2020.
After an exceptional 2020 financial year, 2021 was marked by contrasting activity. Following a first half that still benefited from the effects of COVID, Euromedis explains that it suffered the brutal impact of the market reversal in the second half of 2021. Despite an improvement in purchasing conditions linked to the easing of raw material prices raw materials, the group had to deal with a drop in demand. Strong competition on calls for tenders also forced it to sharply reduce its margins to maintain its outlets. At the same time, the appreciation of the dollar, making the purchase price of goods imported from Asia more expensive, also deteriorated purchasing conditions, penalizing the margin over this period. Finally, the increase in transport costs, which represents the first item of the group’s external expenses, weighed significantly on the level of profitability recorded in the second half of 2021.
“The end of the COVID 19 crisis and the war in Ukraine are causing great uncertainty about the evolution of the price of energy, currencies and certain raw materials. The activities of our subsidiaries could continue to suffer the effects. unfavorable without being able to assess the potential impacts. Concerning the “own brand” activity, the 2022 financial year suffered from the first full-year effects of the loss of calls for tenders recorded during the 2021 financial year for a impact estimated at around 13% of turnover”, notes the group.
Euromedis warns that its profitability for the first half of 2022 continues to follow a negative trend linked to sales with sharply degraded margins and inventories having been acquired under unfavorable purchasing conditions compared to current demands. In 2022, the “distribution” activity should remain loss-making despite the momentum initiated in 2021 on the deployment of its national offer and the launch of the @commerce site which went online in February 2022. The continuation of the network reorganization plan number of stores and the proliferation of service centres, the development of the network of members and the recruitment of sales forces should, however, allow Euromedis to return to a profitable level of activity. Given this negative outlook, the Board of Directors has decided not to propose any dividend payment.
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