Main consolidated economic highlights – 1st half FY 24/25 vs. 1st half FY 23/24
VALUE OF PRODUCTION EQUAL TO EUR 4,2M COMPARED TO EUR 3,6M (+17%)
REVENUE FROM SALES* EQUAL TO EUR 3,6M (COMPARED TO EUR 3M AS OF DECEMBER 31, 2023) OF WHICH RECURRING REVENUE EQUAL TO EUR 2,2M COMPARED TO EUR 1,8M (+19%)
“ANNUAL RECURRING REVENUE” (ARR)** EQUAL TO EUR 5,2M COMPARED TO EUR 4,6M AS OF DECEMBER 31, 2023, AN INCREASE OF 13%
INTERNATIONAL TURNOVER AT 90% SHARE
EBITDA EQUAL TO EUR -44K COMPARED TO EUR -272K
LOSS EQUAL TO EUR -781K COMPARED TO EUR -879K
Main consolidated financial highlights – 31 December 2024 vs 30 June 2024
PFN (NET DEBT) EQUAL TO EUR 1,1M COMPARED TO EUR 1,5M
* Including Work in Progress (WIP).
** “Annual Recurring Revenue” (ARR) is the total anticipated revenue a business expects to earn from its subscription-based customers in a year, reflecting the recurring nature of subscription contracts.
Paolo Gamberoni, Chairman of the Board of Directors, comments: “In the first half of the year, the value of production grew by approximately 17%, reaching 4 million euros, with recurring revenues equal to 2 million euros (+19%). Revenues from indirect channels increased by 90%, reaching 745 thousand euros. The share of international sales is confirmed at around 90%, with the development of partnerships with INDRA, KPMG, NTT DATA, Accenture and Bain & Co. Regarding the cost structure, the integration of Creactives S.p.A. into Creactives Group S.p.A. will contribute to management efficiency. In the second half of the year, the company is focusing on finalizing strategic contracts and developing new product features, with targeted investments in technology and partnerships, with the aim of continuing to increase the volume of recurring revenues.”
Verona, March 26, 2025. Creactives Group S.p.A. (“Creactives Group” or the “Company”) (ISIN IT0005408593 – ticker: CREG), an international company and fiscally eligible Innovative SME, listed on Euronext Growth Milan – Professional Segment (“Euronext Growth Milan Pro”), that develops Artificial Intelligence technologies to address real-life business problems in the Supply Chain, today approved the consolidated half-yearly report as of December 31, 2024, voluntarily subjected to a limited audit.
Comment on the results
The value of production stands at around 4,2 million euros, an increase of 17% compared to the previous financial year. This growth is driven by the increase in recurring revenues, which reached 2,2 million euros (+19% on an annual basis), and by the project component, equal to around 1,3 million euros (+20%). Internal capitalization remained in line with last year, at around 616 thousand euros, relating to the evolution of the Vanessa platform and the development of modules that use LLM (Large Language Model) to optimize product setup times.
As far as sales channels are concerned, direct revenues (including WIP) equal to 2,8 million euros remain prevalent, but the share generated by projects acquired through partners has grown significantly; revenues from indirect channels (including WIP) increased by 90%, from approximately 391 thousand euros to 745 thousand euros. This growth is attributable to new orders signed with leading international companies, presented by the partners, and to the start of recurring services related to contracts acquired in the previous period, whose project component was completed in the first half of the year.
| Revenues from sales and services (*) | 31.12.2024 | % | 31.12.2023 | % | Var. % |
| (Figures in Euro/000) | |||||
| Subscription Revenues (Saas/Recurrent) | 2.142 | 60,0% | 1.777 | 59,2% | 20,5% |
| Professional Services Revenues | 1.341 | 37,6% | 1.146 | 38,1% | 17,1% |
| Revenues from maintenance | 85 | 2,4% | 81 | 2,7% | 5,7% |
| Revenues from licensing | 0 | 0,0% | 0 | 0,0% | – |
| Total | 3.568 | 100% | 3.003 | 100,0% | 18,8% |
(*) Including WIP
In terms of project revenues, there has been an increase in the incidence of revenues from projects with third parties, equal to 0,5 million euros (including WIP) for which Creactives operates as an integrator; these revenues have more than doubled compared to the same period of the previous year. In addition to Add Value, new partners have been added such as Minsait, NTT Data and Apsolut.
On the cost front, the total increased by 11%, from 3,8 million to 4,3 million euros. The increase in personnel costs, equal to approximately 2 million euros as of December 31, 2024, was limited (+50 thousand euros) and is attributable to normal salary dynamics. Other operating costs, equal to 2,3 million euros as of December 31, 2024 (compared to 1,9 million as of December 31, 2023), increased mainly due to the growth of services from third parties, in line with the increase in related revenues. In addition, hosting and business space costs increased. With a view to expansion, the company has enlarged its offices to accommodate new staff already hired and those expected in the coming months.
As for the foreign subsidiary, Creactives GmbH, activities continue to focus on the commercial component, with an exclusive focus on sales services. Overall, the Creactives Group generates about 90% of its turnover internationally.
On the business front, the development of partnerships with large advisory and technology companies is continuing with determination. The agreements with INDRA, KPMG, NTT DATA, Accenture and Bain & Co are generating significant opportunities, some of which have already been finalized, while others are in the process of being realized.
At the same time, thanks to the partnership with Add Value, an important re-engineering of the TAM4 platform has been completed, which will reduce project customization and setup times. Commercial and marketing activities have achieved significant successes globally, confirming the predominant role of the international market over the domestic one.
Collaboration with partners and the orientation towards large customers involves complex and extensive project management, with often prolonged negotiation and contract finalization times. The operational start-up of activities can also be delayed, due to both the internal governance structures of customers and endogenous factors.
With a view to growth and optimization, the Group has continued to improve its internal procedures, accompanying the company’s development and the evolution of its business models. In this context, we would like to point out the merger between Creactives S.p.A. and Creactives Group S.p.A., which will bring benefits in terms of administrative and financial efficiency in the coming months.
Finally, the net financial position (NFP) decreased by 27%, reaching 1,1 million euros. This change is due to an increase in liquidity, supported by two main factors: the capital increase through the placement of ordinary shares for approximately 1,5 million euros in December 2024 and the subscription of a non-convertible bond for a total of 0,5 million euros finalized in two tranches in July and November 2024.
Shareholders’ equity increased from 1 million euros as of June 30, 2024 to 1,8 million euros as of December 31, 2024.
Significant events in the first half of the 2024/25 financial year
July 31, 2024
The first subscription period for the non-convertible bond “CREG – 7% 2024-2026” has ended. 13 bonds were issued, for a total value of 325.000 euros, subscribed by four Italian investors.
September 10, 2024
Creactives has successfully passed the British Standard Institute (BSI) inspection for the migration from ISO 27001:2013 to the new ISO 27001:2022 certification. This regulatory evolution introduces a greater number of controls than the previous version, guaranteeing even higher standards of security and information management.
The update to ISO 27001:2022 represents a significant step forward in information security management. While the 2013 version provided the basis for a solid Information Security Management System (ISMS), the latest revision strengthens and expands these principles, responding to the new challenges of the digital age. Companies that, like Creactives, have implemented this certification, are better equipped to protect their data and face ever-evolving threats, ensuring security, integrity and availability of information.
October 28, 2024
The Shareholders’ Meeting of Creactives Group S.p.A. approved:
- In ordinary session: the financial statements as of June 30, 2024.
- In extraordinary session: the merger by incorporation of the subsidiary Creactives S.p.A. into Creactives Group S.p.A.
November 8, 2024
Conclusion of the second subscription period for the non-convertible bond “CREG – 7% 2024-2026”. A total of 20 bonds were issued, each with a nominal value of 25.000 euros, for a total amount of 500.000 euros.
December 11, 2024
Placement of 630.000 ordinary shares, for a total value of 1.575.000 euros, through an Accelerated Bookbuilding operation aimed at qualified and institutional investors. Following this operation, the free float increased from 21,61% to 25,38% of the share capital.
December 31, 2024
Merger by incorporation of Creactives S.p.A. into Creactives Group S.p.A. With retroactive effect to July 1, 2024, the operations of the incorporated company are attributed to Creactives Group S.p.A. The same effective date is adopted for income tax purposes.
Significant events between the end of the semester and the publication of this report
No significant events have occurred between the end of the semester and the publication of this report.
Foreseeable development of operations
In the second half of the year, the company’s priority will be to finalize strategic contracts with leading international companies, whose contribution is expected to be decisive for the growth of turnover, margins and, above all, ARR (Annual Recurring Revenue).
At the same time, the company will continue to expand its use cases, developing functionalities that are increasingly in demand by international partners and customers.
Investments in artificial intelligence (AI) will also continue, with a focus on both the Vanessa platform and applications, with the aim of making installations and integrations of the Creactives platform faster and more efficient.
The medium-term objective remains: to increase recurring revenues to the point of fully covering operating costs.
The financial statements are attached.
DOWNLOAD THE PRESS RELEASE (EN)
DOWNLOAD THE PRESS RELEASE (IT)