Innofactor Plc’s Interim Report for January 1–March 31, 2024 (IFRS)
Innofactor Plc Interim Report April 23, 2024, at 9:00 Finnish
time
Innofactor increased its net sales in the first quarter
of 2024 in spite of the continued challenging market
situation
January–March 2024 in brief:
- Net sales were
approximately EUR 21.2 million (2023: 20.2), representing an
increase of 4.8%
- The operating
margin was approximately EUR 2.6 million (2023: 2.5), which shows
an increase of 4.6%
- Operating profit
was EUR 1.8 million (2023: 1.7), representing an increase of
7.3%
- The order backlog
at the end of the review period was EUR 68.8 million (2023:
76.3),
representing a decrease of 9.8%
Key
figures of the group, IFRS |
|
|
|
|
|
|
|
. |
Jan 1–Mar 31, 2024 |
Jan 1–Mar 31, 2023 |
Change |
Net sales, EUR
thousand |
21,186 |
20,223 |
4.8% |
Growth of net
sales |
4.8% |
19.2% |
|
Operating result
before depreciation and amortization (EBITDA), EUR thousand |
2,601 |
2,487 |
4.6% |
percentage of net sales |
12.3% |
12.3% |
|
Operating
profit/loss (EBIT), EUR thousand |
1,836 |
1,712 |
7.3% |
percentage of net sales |
8.7% |
8.5% |
|
Earnings before
taxes, EUR thousand |
1,743 |
1,311 |
33.0% |
percentage of net sales |
8.2% |
6.5% |
|
Earnings, EUR
thousand |
1,378 |
1,036 |
32.9% |
percentage of net sales |
6.5% |
5.1% |
|
Order
backlog |
68,819 |
76,293 |
-9.8% |
Net gearing |
19.2% |
33.1% |
-13.9% |
Net gearing
without IFRS 16 |
8.8% |
16.4% |
-7.5% |
Equity ratio |
53.9% |
47.3% |
6.7% |
Equity ratio
without IFRS 16 |
57.1% |
51.3% |
5.8% |
Active personnel
on average during the review period* |
579 |
567 |
2.1% |
Active personnel
at the end of the review period* |
583 |
572 |
1.9% |
Earnings per
share (EUR) |
0.04 |
0.03 |
32.9% |
*) Innofactor Group monitors the number of active personnel. The
number of active personnel does not include employees who are on
leave for more than three months.
Innofactor’s future outlook for 2024
Innofactor’s net sales and operating margin (EBITDA) in 2024 are
estimated to increase from 2023, during which net sales were EUR
80.3 million and the operating margin was EUR 9.1 million.
CEO Sami Ensio’s review: We continue to adapt our
operations due to the continued challenging market
situation
Net sales in the first quarter of 2024 amounted to EUR 21.2
million, representing year-on-year growth of 4.8 percent. The
operating margin (EBITDA) increased by 4.6 percent year-on-year to
EUR 2.6 million (12.3 percent of net sales), and was positive in
Finland and Norway. The order backlog at the end of the quarter
amounted to EUR 68.8 million, representing a year-on-year decrease
of 9.8 percent.
In accordance with our previous assessment, the market situation
remained challenging in the first quarter of 2024. New sales were
challenging during the first quarter, but we were successful in our
sales activities particularly with regard to the extensions of
existing customer accounts. Our invoicing rate fell short of our
target due to the challenging demand situation.
We are confident that the market conditions will improve and we
want to maintain our competitiveness when demand turns to growth
again. In our tendering activities, we have not priced our services
below our cost. We are adapting our operations with a conservative
approach. We have reduced, and continue to reduce, the use of
subcontracting, especially in Finland and Sweden. In the second
quarter, we will reduce the number of our personnel by
approximately 20 percent in Sweden, where profitability has been
weak for an extended period of time and the challenging market
situation has further exacerbated the situation.
Innofactor’s aim is to be the leading provider of organizations’
digital transformation in each of the Nordic countries. We believe
in our chosen Nordic strategy and in reaching our long-term goals.
This requires perseverance and determination from the company's
management and employees as well as investors. Innofactor is still
actively looking for new strategic partnerships in the Nordic
countries. The Group’s goal is to grow both organically and through
acquisitions.
Strategy and its realization in the review
period
Innofactor’s strategy comprises our purpose, mission, vision,
strategic choices, values, working principle, and long-term
financial goals.
Our purpose: Innovating to make the world work better
Our mission: Driving the modern digital organization
Our vision: Leading Nordic digital transformation partner in the
Microsoft ecosystem
Our strategic choices:
- The most competent Nordic teams
- Productized and
specialized offering
- Proactive and agile
way of working
- Innovation with top
customers
Our values:
- Accountability
- Empowerment
- Innovation
- Customer
Our working principle: Our principle is to put people first in
everything we do. We want to provide solutions that make our
customers’ everyday work and life run smoothly and bring a smile to
their faces.
Employer Value Proposition: Be the real you
Our long-term financial goals:
- To achieve annual growth of about 20
percent, the majority of which is intended to be achieved by
organic growth
- To achieve about 20
percent EBITDA in relation to the net sales
- To keep the cash
flow positive and secure good financial standing in all
situations.
Innofactor’s net sales in the first quarter amounted to EUR 21.2
million (2023: 20.2), which shows an increase of 4.8 percent
compared to the previous year. Achieving the net sales growth
target is challenging at present due to the prevailing weak market
situation. Innofactor aims to continue to take measures to support
stronger net sales growth going forward.
The operating margin (EBITDA) was 12.3 percent of net sales
(2023: 12.3%). In the period under review, the operating margin
increased by 4.6 percent year-on-year. Profitability has remained
at the previous level, and attention and efforts by the management
are needed to reach the long-term target of approximately 20
percent.
Innofactor’s operating cash flow for the review period January
1–March 31, 2024, was EUR 4.4 million (2023 Q1: EUR 3.9 million)
and the equity ratio at the end of the review period was 53.9
percent (2023: 47.3 percent). Innofactor's high equity ratio and
strong operating cash flow supports the company’s strategic goal of
profitable growth and securing a solid financial standing in all
situations.
Espoo, April 23, 2024
INNOFACTOR PLC
Board of Directors
Additional information:
CEO Sami Ensio, Innofactor Plc
tel. +358 50 584 2029
sami.ensio@innofactor.com
Briefings concerning the Interim Report for January
1–March 31, 2024
Innofactor will publish its Interim Report for January–March
2024 on Tuesday, April 23, 2024, at approximately 9:00 Finnish
time.
A briefing in Finnish concerning the Interim Report will be held
for media, investors and analysts on the same day at 10:00 Finnish
time, at the company’s premises at Keilaranta 9, Espoo. The report
will be presented by CEO Sami Ensio. The corresponding video
conference in English will be held at 12 noon Finnish time. The
report will be presented by CFO Antti Rokala.
Please register for the briefing in advance by sending an e-mail
to ir@innofactor.com.
The presentation materials will be available on Innofactor’s
website after the briefing.
Distribution:
NASDAQ Helsinki
Main media
www.innofactor.com
Innofactor
Innofactor is the leading driver of the modern digital organization
in the Nordic Countries for its over 1,000 customers in commercial
and public sector. Innofactor has the widest solution offering and
leading know-how in the Microsoft ecosystem in the Nordics.
Innofactor has about 600 enthusiastic and motivated top specialists
in Finland, Sweden, Denmark and Norway. The Innofactor Plc share is
listed in the technology section of the main list of NASDAQ
Helsinki Oy. www.innofactor.com #ModernDigitalOrganization
#HybridWork #PeopleFirst #CreatingSmiles
- Innofactor Plc's Interim Report for January 1–March 31, 2024
(IFRS)
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