adesso SE / DE000A0Z23Q5

adesso SE continues to increase sales strongly in the first half of 2024 by 16 % to EUR 631.1 m and EBITDA by 10 % to EUR 27.7 m / Utilisation picks up more slowly than expected / Guidance adjustment

EQS-Ad-hoc: adesso SE / Key word(s): Half Year Results/Change in Forecast


05-Aug-2024 / 13:03 CET/CEST
Disclosure of an inside information acc. to Article 17 MAR of the Regulation (EU) No 596/2014, transmitted by EQS News - a service of EQS Group AG.
The issuer is solely responsible for the content of this announcement.

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  * Sales growth of 16 % to EUR 631.1 million in the first half of 2024 * EBITDA increased by 10 % to EUR 27.7 million after six months * Investments to be maintained in view of demand for digitalisation * Increase in profitability and further improvement in capacity utilisation expected in the second half of the year * Guidance for EBITDA adjusted to between EUR 80 million and EUR 110 million with sales remaining unchanged at over EUR 1.25 billion   Based on preliminary figures for the second quarter of 2024, adesso increased sales by 16 % year-on-year to EUR 314.0 million. EBITDA improved by 37 % to EUR 9.9 million. adesso thus achieved cumulative sales growth of 16 % to EUR 631.1 million after the first half of the year although there was one working day less available in the first half of 2024 than in the same period of the previous year. The operating result EBITDA improved by 10 % to EUR 27.7 million after the first six months. This corresponds to an EBITDA margin of 4.4 % (previous year: 4.6%). Due to higher depreciation and amortisation, primarily from building rents, as well as increased interest payments, EBIT and consolidated earnings are expected to be negative after the first half of the year. However, working capital was reduced by 17 % from EUR 246.1 million on 30 June 2023 to EUR 204.7 million as at the reporting date. Net debt improved by EUR 28.1 million to EUR -115.3 million in the same period. Although capacity utilisation in the IT Services division improved slightly over the course of the month, a disproportionate increase in personnel costs and other operating expenses compared to sales weighed on the operating result. As in previous years and as forecasted for 2024, the Executive Board expects a higher earnings contribution in the second half of the year, in particular due to a further improvement in capacity utilisation in the IT Services segment and the higher number of available working days. Five more working days will be available in the second half of 2024 than in the first half of 2024 and two more working days than in the second half of 2023. The revenue growth achieved and the high demand for digitalisation in the core business with IT services, which is also expected in the medium term, are fundamentally positive, even if the improvement in capacity utilisation is slower than expected. On this basis, the Executive Board has decided to maintain its investments in highly qualified employees and its own products and not to react more strongly in the short term to the continued below-average capacity utilisation. Taking these new planning assumptions into account, the Executive Board is lowering and widening the guidance corridor for the operating result to EUR 80 to 110 million (previously: EUR 110 to 130 million) with an unchanged sales guidance of more than EUR 1.25 billion. This estimate is based on the findings to date from the preparation of the financial statements for the second quarter of 2024 and the 2024 half-year report. Explanations of the key figures used are published on the adesso 's website at www.adesso-group.de/en/apm/.  
Contact:
Martin Möllmann
Head of Investor Relations
Tel.: [phone]
E-Mail: [e-mail]

End of Inside Information

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Information and Explanation of the Issuer to this announcement:

adesso Group
With more than 10,100 employees and annual sales of more than EUR 1.1 billion in 2023, adesso Group is one of the largest German IT service providers with outstanding growth opportunities. At its own locations in Germany, other locations in Europe and the first locations in Asia, as well as at numerous local customers adesso offers consulting and software development services for optimising core business processes. adesso also offers ready-to-use software products for standard applications. The development of an own, industry-specific product portfolio opens up additional growth and earnings opportunities and is another key element of the adesso strategy. In 2023 and 2020, adesso was awarded the title of the best employer of its size in Germany across all industries. After having already achieved first place among IT employers in 2016, 2018 and 2020, adesso was ranked first again in 2023.

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05-Aug-2024 CET/CEST The EQS Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases.
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Language:	English
Company:	adesso SE
	Adessoplatz 1
	44269 Dortmund
	Germany
Phone:	[phone]
Fax:	[phone]
E-mail:	[e-mail]
Internet:	www.adesso-group.de
ISIN:	DE000A0Z23Q5
WKN:	A0Z23Q
Listed:	Regulated Market in Frankfurt (Prime Standard); Regulated Unofficial Market in Berlin, Dusseldorf, Hamburg, Hanover, Munich, Stuttgart, Tradegate Exchange; London
EQS News ID:	1961127

End of Announcement	EQS News Service

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1961127  05-Aug-2024 CET/CEST