Slow recovery
The third quarter of the year was characterized by varied demand across different segments and geographic areas, where Knowit is facing its greatest demands in the Swedish market. After over a year of hard work to optimize and strengthen the organization, we are seeing that the negative development has partially stopped and that utilization is slowly improving. This applies primarily to our largest business area Solutions. At the same time, we and our entire sector continue to be challenged by weak demand and a relatively unpredictable market. The nest sales for the quarter decreased by 14.1 percent, combined with an adjusted EBITA margin of 4.4 percent. Net sales were SEK 1,326.2 (1,544.1) million and the adjusted EBITA profit was SEK 57.9 (74.9) million.
“It is still too early to say that we are seeing any general recovery or that we have reached the bottom of the recession. Demand varies across segments and geographic areas, which it has throughout the past year. In our largest business areas, Solutions, we are seeing that the early signs of recovery which we noted already during the second quarter have continued throughout the third quarter. For the second quarter running we have seen a modest, but positive, trend as regards utilization,” says Per Wallentin, CEO and President.
Proactivity in client dialogues, combined with a focus on constant improvements to our internal efficiency, continues to be a guiding star in the organization. Companies and authorities have a large need to continue their digitalization journey in a weaker economy too.
“The significance of innovation and new technology is increasing in society, even during a recession. As one of the leading suppliers in the Nordic region, Knowit is well-positioned to start growing again and gaining market shares when the market does pivot. Through the actions taken during the last year, we are well-equipped to face a higher demand on a stronger market.,” says 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 Interim Report
Knowit will be holding a presentation of the Interim Report today, Friday October 25. President and CEO Per Wallentin and CFO Marie Björklund 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/66ffbab6b2cedb000e38cb4c/pandg
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. This press release was made public through the agency of President and CEO Per Wallentin, at 7:30 AM CEST on October 25, 2024.
For more information, please contact:
Marie Björklund, CFO, +46(0)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 0rt 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 3,950 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.