Improved results on a weak market
Despite a continued challenging market, Knowit increased the adjusted EBITA profit in the quarter. Compared to the second quarter of 2023, the utilization rate is more satisfactory despite the weaker market, a result of the measures we have taken to optimize the organization. Net sales in the quarter decreased by 4.4 percent combined with an adjusted EBITA margin of 5.6 percent. Net sales amounted to SEK 1,681.3 (1,758.8) million and the adjusted EBITA increased by 22.6 percent to SEK 94.2 (76.8) million.
- In parts of the operations we are now seeing stabilization and early signs of a turnaround, whereas other parts are challenged by continued low utilization. The market outlook remains uncertain and our task in the current market is to retain our focus on developing existing client relations and finding new clients, We will also continue to optimize and adapt the organization to the current market condition, says Per Wallentin, President and CEO.
The Swedish market is challenging for all business areas. In Norway, the development is more stable, mainly thanks to several large strategic partnerships with public authorities and companies. The Finnish market is severely affected by the recession, but Knowit’s efforts with high sales pressure and a focus on adapting the organization have shown an effect there, and we are performing better than the market as a whole. In Denmark, the development remains weak, but with a few new larger deals in cloud solutions that create opportunities going forward.
- Through a strong sales focus and an agile organization, we can retain and even strengthen our positions. Nordic companies and authorities are facing large challenges in the transition to digital business models. We are seeing a continued hesitance in demand, but somewhat increased activity among our clients. Thanks to the actions taken during the latest quarter, we are well-equipped to face higher demand in an improving economic climate, concludes Per Wallentin.
For more detailed information on the results for the second quarter, please see the interim report available on Knowit’s website and appended this press release.
Presentation of the Interim Report
Knowit will hold a presentation of the Interim Report, Friday July 19. President and CEO Per Wallentin and CFO Marie Björklund will comment on the results and answer questions.
The report will be available at https://www.knowit.eu/financial-information/
The presentation starts at 10.00 am (CEST) and will be held in English.
Link to the audiocast: https://www.investis-live.com/knowit/6669782ada62330f003523e3/taerd
Telephone numbers to the audiocast:
Sweden +46 8 5051 0031
United Kingdom +44 207 107 06 13
Other international numbers are available HERE
Pin: 43405119
No advance notification is necessary. After the presentation, a recording of the webcast will be available at https://www.knowit.eu/financial-information/
The information contained herein is such as shall be made public by Knowit, in accordance with the EU Market Abuse Regulation and the Securities Market Act. This press release was made public through the agency of President and CEO Per Wallentin, at 7:30 AM CEST on July 19, 2024.
For more information, please contact:
Marie Björklund, CFO, +46(8)700 66 00 or marie.bjorklund@knowit.se
Christina Johansson, Head of Communications, +46(0)70 542 1734 or christina.johansson@knowit.se
Annika Billberg, Investor Relations, +46(0)70 267 97 91 or annika.billberg@knowit.se
About Knowit
Knowit are digitalization consultants and a Nordic powerhouse for the digital business models of the future. Our vision is to create a sustainable and humane society through digitalization and innovation. Knowit supports its clients in the digital transformation and stands out among other consultancy firms through its decentralized organization and agile work methods in client assignments. The operations are divided into four business areas – Solutions, Experience, Connectivity, and Insight – which offer services in bespoke system development, digital customer experiences, the internet of things, cloud, cybersecurity, and management consultancy. Competences from several business areas are often combined in client projects.
Knowit was founded in 1990 and now has around 4,000 employees, mainly in the Nordic countries, but also in operations in Germany and Poland. Knowit AB (publ) has been listed on the stock market since 1997 and is currently listed on Nasdaq OMX Stockholm Mid Cap. For more information about Knowit, please visit knowit.eu.