VusionGroup Q1 2025 slides: Sales surge 31% on strong US momentum

Introduction & Market Context

VusionGroup SA (VU) presented its Q1 2025 sales results on April 23, 2025, reporting strong growth driven primarily by its expanding presence in the United States. The electronic shelf label (ESL) and retail technology provider saw its stock rise 1.08% to €203.8 following the presentation, as investors responded positively to the company’s performance and confirmed outlook.

The results highlight VusionGroup’s continued expansion in the Americas, particularly through its strategic partnership with Walmart (NYSE:WMT), while facing challenges in its traditional European markets.

Quarterly Performance Highlights

VusionGroup reported Q1 2025 sales of €215 million under IFRS standards, representing a 25% increase compared to the same period last year. On an adjusted basis, which accounts for IFRS adjustments related to the Walmart contract, sales reached €233 million, up 31% year-over-year.

As shown in the following chart, the company’s Q1 performance demonstrates strong growth across key metrics:

The company highlighted record order entries of €532 million in Q1, representing a remarkable 94% increase compared to Q1 2024. This surge in orders was primarily driven by strong momentum in the US market, suggesting continued growth in upcoming quarters.

The following chart illustrates the consistent upward trend in order entries over the past five quarters, with Q1 2025 showing the most significant jump:

Regional Performance Analysis

VusionGroup’s growth story in Q1 2025 reveals a stark contrast between its performance in different regions. The Americas/APAC region now accounts for 61% of the company’s adjusted sales at €143 million, representing an impressive 100% growth compared to Q1 2024. This growth was primarily driven by the United States, where the company’s partnership with Walmart continues to bear fruit.

In contrast, the EMEA region, which has traditionally been VusionGroup’s core market, experienced a 15% decline, generating €90 million or 39% of total adjusted sales.

The following chart clearly illustrates this regional divergence:

This regional shift marks a significant transformation in VusionGroup’s business, with the Americas now firmly established as the company’s primary growth engine. The decline in EMEA sales could be a potential concern for investors, though the overall growth trajectory remains strong.

Value-Added Services Growth

A particularly promising aspect of VusionGroup’s Q1 performance was the strong growth in Value-Added Services (VAS), which increased by 71% to reach €33.3 million. Notably, recurring VAS now represents 52% of total VAS revenue, highlighting the company’s successful transition toward a more predictable revenue model.

The company’s cloud installed base has expanded to 26,000 stores with 188 million electronic shelf labels, creating a solid foundation for future recurring revenue growth.

The following chart breaks down VusionGroup’s VAS revenue growth:

The significant increase in recurring VAS revenue (from €7 million in Q1 2024 to €16.1 million in Q1 2025) demonstrates VusionGroup’s successful execution of its strategy to build a stable, high-margin revenue stream alongside its hardware sales.

Forward-Looking Statements

VusionGroup confirmed its full-year 2025 outlook, projecting adjusted sales of €1.4 billion, which would represent a 40% increase compared to 2024. The company also expects improved profitability, though specific margin targets were not disclosed in the presentation.

The revenue is expected to be weighted toward the second half of the year, with approximately €600 million projected for H1 2025 and €800 million for H2 2025, as illustrated in the following chart:

This projected acceleration in the second half suggests confidence in continued strong order execution and potential new contract wins. The company’s record order backlog provides visibility into future revenue recognition and supports the ambitious full-year target.

VusionGroup’s Q1 2025 presentation demonstrates the company’s successful expansion in the Americas market, particularly through its strategic partnership with Walmart. While the decline in EMEA sales presents a challenge, the overall growth trajectory and strong order momentum position the company well to achieve its full-year targets. The robust growth in value-added services, especially recurring revenue, further strengthens VusionGroup’s business model and long-term prospects.

Full presentation:

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