VusionGroup has seen a remarkable 21.8% increase in its stock price on the Paris Stock Exchange, driven by outstanding annual results and a robust 51% growth in adjusted EBITDA. With projected revenues of 1.4 billion euros for 2025 and a significant pilot project with a major French hypermarket, the company’s future looks promising. Additionally, the dividend has been doubled, reflecting a strong commitment to shareholder returns, solidifying VusionGroup’s position as a key market player.
VusionGroup Soars on the Paris Stock Exchange
VusionGroup has experienced a remarkable surge on the Paris Stock Exchange, witnessing a striking increase of 21.8%, elevating its stock price to 202.80 euros on February 27. This impressive growth is attributed to annual results and projections that have significantly outperformed expectations. The digital retail specialist recorded an adjusted EBITDA growth of 51%, reaching an impressive 160.5 million euros, accompanied by a notably enhanced margin. As a result of this stellar performance, investors are eagerly purchasing shares, pushing VusionGroup to the forefront of the SBF 120 index.
Impressive Financial Results and Future Prospects
VusionGroup’s adjusted revenue surged by 25%, achieving 1.01 billion euros for 2024. This growth can be attributed to several key factors:
- A robust increase in the United States, fueled by a strategic partnership with Walmart.
- A significant expansion of operations beyond Europe, now accounting for 51% of total revenue, marking a historic milestone for the company.
- A recovery in software and services (VAS) activities towards the end of the year, limiting the decline to just -3%.
Another noteworthy metric is the free cash flow, which skyrocketed by 149% to reach 391 million euros. Even after adjusting for received advances and pre-financing, the cash flow remains resilient at 86 million euros, reflecting a strong 54% conversion rate of adjusted EBITDA.
Looking ahead, VusionGroup boasts a bright outlook with record orders totaling 1.6 billion euros, a remarkable 71% increase, resulting in a book-to-bill ratio of 160%. Notably, this figure does not yet account for the latest segment of the Walmart contract!
CEO Thierry Gadou conveyed his optimism, stating, “We anticipate a revenue growth of approximately 40% in 2025, reaching 1.4 billion euros, alongside an enhancement of our EBITDA margin by 100 to 200 basis points.”
The ambitious forecasts for 2025 include:
- Projected revenue of 1.4 billion euros (+40%).
- Forecasted EBITDA of 244 million euros, exceeding the Bloomberg consensus by 20%.
- Accelerated growth in VAS services, predicted to outpace total revenue growth.
Stifel underscores the feasibility of these goals, citing strong visibility on current contracts.
Moreover, VusionGroup has announced the initiation of a significant pilot project with a major hypermarket chain in France, believed to be Carrefour, potentially involving 200 stores. If successful, this project could serve as a substantial growth lever and catalyst for the company’s stock.
In addition to these exciting developments, shareholders will be pleased to learn that the proposed dividend has been doubled to 0.60 euros per share, reaffirming a commitment to a robust shareholder return policy.
With record-breaking results, dynamic growth, and solid future prospects, VusionGroup continues to captivate the market. Its international expansion, strategic partnerships, and strong positioning in services solidify its status as a key player to watch in 2025.