Stock exchange release
Digia's profitable growth continued: net sales up 7.2 per cent in the first quarter, operating profit (EBITA) up 13.2 per cent
January-
- Net sales:
EUR 53.6 (50.0) million, up 7.2 per cent -
Operating profit (EBITA):
EUR 5.5 (4.9) million, up 13.2 per cent; EBITA margin: 10.3 (9.7) per cent of net sales -
Operating profit (EBIT):
EUR 4.8 (4.1) million, up 14.8 per cent; operating margin: 8.9 (8.3) per cent of net sales -
Earnings per share:
EUR 0.13 (0.11) - Return on equity (ROE): 18.4 (17.2) per cent
- Equity ratio: 43.8 (43.1) per cent
-
Profit guidance remains unchanged: Digia's net sales (
EUR 192.1 million in 2023) and operating profit (EBITA) (EUR 16.7 million in 2023) will increase compared to 2023.
Unless otherwise stated, the comparison figures provided in parentheses refer to the corresponding period of the previous year.
Group key figures
1-3/2024 | 1-3/2023 | Change, % | 1-12/2023 | |
Net sales | 53,648 | 50,034 | 7.2% | 192,087 |
Operating profit (EBITA) | 5,510 | 4,870 | 13.2% | 16,727 |
- as a % of net sales | 10.3% | 9.7% | 8.7% | |
Operating profit (EBIT) | 4,751 | 4,137 | 14.8% | 13,835 |
- as a % of net sales | 8.9% | 8.3% | 7.2% | |
Result for the period | 3,415 | 3,021 | 13.0% | 9,872 |
- as a % of net sales | 6.4% | 6.0% | 5.1% | |
Return on equity, % | 18.4% | 17.2% | 13.5% | |
Return on investment, % | 17.0% | 16.2% | 12.9% | |
Interest-bearing net liabilities | 22,060 | 18,802 | 17.3% | 24,771 |
Net gearing, % | 30.1% | 27.1% | 32.8% | |
Equity ratio, % | 43.8% | 43.1% | 46.7% | |
Number of personnel at period-end | 1,547 | 1,451 | 6.6% | 1,527 |
Average number of personnel | 1,544 | 1,441 | 7.1% | 1,465 |
Shareholders' equity | 73,215 | 69,444 | 5.4% | 75,420 |
Balance sheet total | 173,770 | 166,731 | 4.2% | 168,157 |
Earnings per share, EUR | 0.13 | 0.11 | 12.1% | 0.37 |
Earnings per share (diluted), EUR | 0.13 | 0.11 | 13.0% | 0.37 |
CEO's Review:
"I'm pleased that despite the challenging market situation, we achieved the highest net sales and operating profit (EBITA) in Digia's history in the first quarter. In addition to growth, we also improved our profitability.
In January-March, our net sales grew by 7.2 per cent to
The market situation remained challenging in the first quarter: Competition continued to be tight, and the general economic situation resulted in cautiousness among customers, which was evident in delays in decision-making, for instance. We see an ongoing trend in customers' purchasing behaviour, in which they are centralising their purchases and relying on stable operators with broader expertise and offerings. Digia competes in the market with its strong expertise and versatile overall offering.
Digia's offering consists of four service areas, three of which increased their net sales during the review period. In the service areas, particularly strong growth was seen in Digia's automation and AI platform and CRM solutions.
Demand for Digia's automation and AI platform remained strong, with a robust bid volume. Net sales in this area increased by more than 50 per cent in relation to the comparison period. Digia's platform has proven itself to be a concrete and rapid means of harnessing automation and AI in business processes. The automation and AI platform is part of the ISO 27001-certified operations of our Managed Services area. The market breakthrough of AI will continue in 2024-2025. Digia's automation and AI platform business has already surpassed the annual sales milestone of
Our CRM solutions also grew by 25 per cent during the review period. Our solutions combine Digia's service design, marketing automation and integration expertise, and Microsoft CRM and Power Platform solutions.
Furthermore, our net sales were boosted by Top of Minds, a Swedish company which joined Digia in
The service and maintenance business is an important element in Digia's business model. The service and maintenance business accounted for 50.6 per cent and the project business for 49.4 per cent of net sales in the review period. The significant share accounted for by the service and maintenance business provides stability to Digia's operations in the uncertain market.
Major agreements were signed during the review period with the
Personnel and sustainability
Our number of personnel increased by 20 new experts in the first quarter. During the review period, we forged ahead with our responsibility development efforts. Digia completed the UN Global Compact Network Finland Target Gender Equality training programme, which focused on issues such as promoting gender equality and diversity. In addition, we signed the Women's Empowerment Principles established by UN Women and
As part of the continuous improvement of Digia's operations, we decided to modernise our premises in
2024 is the second year in our three-year strategy period. Intelligent business forms the core of our strategy: automation and intelligence are becoming an increasingly integral aspect of all services, solutions and processes. Our mission is to keep our customers at the forefront of digital evolution. There is still short-term uncertainty in the market, but we foresee healthy market growth in the longer term. We are constantly renewing and adjusting our operations in line with market conditions. Our aim is to build sustainable and profitable growth - we have now been on this journey for eight years.
After the end of the review period, we announced changes in Digia's Management Team. Tapani Ojaluoma was appointed as the new head of the Business Platforms service area, effective as from
Profit guidance for 2024 remains unchanged
Digia's profit guidance for 2024: Digia's net sales (
Events after the review period
There have been no major events since the report period.
Briefing invitation
A briefing for analysts will be held at
The material and presentation for the event will be available from
Financial reporting in 2024
Digia will publish its half-year interim report for 2024 at
For further information, please contact:
President & CEO
Tel. +358 40 500 2050
Distribution
Nasdaq
Key Media
digia.com
Digia is a software and service company that combines technological possibilities and human capabilities to build intelligent business, society and a sustainable future. Our mission is to ensure that our customers are at the forefront of digital evolution. There are more than 1,500 of us working at Digia and we operate globally with our customers. Digia's net sales totalled
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