Cint Group year-end report 2022

Challenging quarter impacted by weak demand and reversals

Highlights for the fourth quarter      

• Net sales increased by 79.5 percent to EUR 80.3m (44.8). On a pro forma basis net sales increased by 6.6 percent (0.1 percent on constant currency basis).
• Gross profit amounted to EUR 48.7m (22.7) with a gross margin of 60.6 percent (50.8). Gross profit pro forma 2021 amounted to EUR 46.7m corresponding to a margin of 62.0 percent.
• Adjusted EBITDA amounted to EUR 13.5m (8.5) with an adjusted EBITDA margin of 16.8 percent (19.0). Adjusted EBITDA pro forma 2021 amounted to EUR 11.5m corresponding to a margin of 15.2 percent.
• EPS, before dilution amounted to EUR -1.60 (-0.07).
• Adjusted EPS, before dilution amounted to EUR 0.05 (0.02).

Highlights for the period January – December      

• Net sales increased by 112.5 percent to EUR 295.2m (138.9). On a pro forma basis net sales increased by 21.2 percent (12.9 percent on constant currency basis).
• Gross profit amounted to EUR 183.3m (71.2) with a gross margin of 62.1 percent (51.2). Gross profit pro forma 2021 amounted to EUR 150.4m corresponding to a margin of 62.8 percent.
• Adjusted EBITDA amounted to EUR 48.8m (25.8) with an adjusted EBITDA margin of 16.5 percent (18.6). Adjusted EBITDA pro forma 2021 amounted to EUR 36.1m corresponding to a margin of 15.1 percent.
• EPS, before dilution amounted to EUR –1.66 (-0.04).
• Adjusted EPS, before dilution amounted to EUR 0.14 (0.12).
• The board of directors will propose to the AGM 2023 that no dividend shall be paid to shareholders.
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• Significant events during and after the end of the fourth quarter                             
• In November 2022, Olivier Lefranc assumed the position as CFO, to replace Britta Mittler who was interim CFO.
• In January 2023, Cint announced an upcoming change of CEO. Tom Buehlmann will leave his position and the board of directors have appointed Giles Palmer as new CEO as of 1 April 2023.
• In January 2023, at an EGM, Cint’s shareholders decided to approve a proposal regarding a new LTIP-program for management and key employees.
• In February 2023, Cint issued a trading update regarding net sales and results for the fourth quarter 2022.
• Impairment test of goodwill for the fourth quarter resulted in a non-cash impairment amounting to EUR 341m. For more information, please refer to note 7.

CEO Tom Buehlmann:
We closed 2022 with an uncharacteristically weak quarter. Pro forma, net sales increased with 6.6 percent compared to last year (0.1 percent in constant currency). This was not in line with our expectations and reflects a rapid drop in activity during the latter half of the quarter—this very much driven by the overall macro situation. Going forward, rebuilding revenue momentum is clearly our top priority. Further to this, the quarter was impacted by a spike of reversals.

Despite gross margin and sales volumes being lower than expected, EBITDA adjusted for items affecting comparability, amounted to EUR 13.5m in the quarter. This corresponds to a margin of 16.8 percent compared to 15.2 percent on a pro forma basis for the same period last year. We are pleased that, even in challenging conditions, we continue delivering on our synergy and cost-control programs.

The quarter’s net profit was impacted by a non-cash impairment of goodwill amounting to EUR 341m, reflecting increased interest rates, inflation and macro-economic factors. This does not in any way reflect our belief in the underlying potential of the merger.

Cint launched several initiatives during the fall to increase our working capital efficiency, with a special focus on accounts receivable. This has contributed positively to our cash flow management.

The fundamentals of Cint are strong. We remain confident that our combined product offering will allow us to benefit markedly once marketing spend returns to more normal levels. As reflected in our medium-term goals, sustainable high growth leads to sustainable, high profit. It is our belief Cint will navigate the present turbulent times and emerge positioned to deliver fully on the shareholder values identified as part of the Lucid/Cint merger.

For more information, please contact:
Olivier Lefranc, CFO   Patrik Linzenbold, Head of IR
Tel: +33 615 01 00 55   Tel: +46 708 252 630
Email: [email protected]  Email: [email protected]

This disclosure contains information that Cint Group AB (publ) is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact persons set out above, at 08:00 CET on 22 February 2023.

About Cint
Cint is a global software leader in technology-enabled insights. The Cint platform automates the insights gathering process so that companies can gain access to insights faster with unparalleled scale. Cint has the world's largest consumer network for digital survey-based research, made up of 266 million engaged respondents across more than 130 countries. More than 4,900 insights-driven companies - including SurveyMonkey, Zappi, Kantar and GfK - use Cint to accelerate how they gather consumer insights and supercharge business growth. Cint Group AB (publ), listed on Nasdaq Stockholm, has a rapidly growing team across many global offices, including Stockholm, London, New York, New Orleans, Singapore, Tokyo and Sydney. www.cint.com