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2024-04-23 08:00:00 CEST 2024-04-23 08:00:04 CEST REGULATED INFORMATION Innofactor Oyj - Interim report (Q1 and Q3)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:
*) 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:
Our values:
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:
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: 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: Innofactor
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