Stock exchange release
Digia's profitable growth continued in October-December: net sales grew by 9.1 per cent and the EBITA margin was 9.6 per cent
October-
- Net sales:
EUR 53.2 (48.7) million, up 9.1 per cent -
Operating profit (EBITA):
EUR 5.1 (5.1) million, down 0.5 per cent; EBITA margin: 9.6 (10.5) per cent of net sales -
Operating profit (EBIT):
EUR 4.3 (4.2) million, up 2.3 per cent; EBIT margin: 8.1 (8.7) per cent of net sales -
Earnings per share:
EUR 0.12 (0.09)
January-
- Net sales:
EUR 192.1 (170.8) million, up 12.5 per cent -
Operating profit (EBITA):
EUR 16.7 (15.7) million, up 6.3 per cent; EBITA margin: 8.7 (9.2) per cent of net sales -
Operating profit (EBIT):
EUR 13.8 (12.7) million, up 8.7 per cent; EBIT margin: 7.2 (7.5) per cent of net sales -
Earnings per share:
EUR 0.37 (0.36) - Return on investment: 12.9 (12.9) per cent
- Equity ratio: 46.7 (45.9) per cent
-
The Board of Directors proposes to the Annual General Meeting that a dividend of
EUR 0.17 (EUR 0.17 for 2022) be paid for 2023.
Unless otherwise stated, the comparison figures provided in parentheses refer to the corresponding period of the previous year.
Group key figures
10-12/ 2023 | 10-12/ 2022 | Change, % | 1-12/ 2023 | 1-12/ 2022 | Change, % | |
Net sales | 53,160 | 48,735 | 9.1% | 192,087 | 170,754 | 12.5% |
Operating profit (EBITA) | 5,077 | 5,103 | -0.5% | 16,727 | 15,733 | 6.3% |
- as a % of net sales | 9.6% | 10.5% | 8.7% | 9.2% | ||
Operating profit (EBIT) | 4,318 | 4,222 | 2.3% | 13,835 | 12,727 | 8.7% |
- as a % of net sales | 8.1% | 8.7% | 7.2% | 7.5% | ||
Result for the period | 3,136 | 2,313 | 35.6% | 9,872 | 9,571 | 3.1% |
- as a % of net sales | 5.9% | 4.7% | 5.1% | 5.6% | ||
Return on equity, % | 13.5% | 13.8% | ||||
Return on investment, % | 12.9% | 12.9% | ||||
Cash flow from operations | 16,973 | 14,252 | 19.1% | |||
Interest-bearing net liabilities | 24,771 | 17,608 | 40.7% | |||
Net gearing, % | 32.8% | 24.8% | ||||
Equity ratio, % | 46.7% | 45.9% | ||||
Number of personnel at period-end | 1,527 | 1,426 | 7.1% | |||
Average number of personnel | 1,527 | 1,434 | 6.5% | 1,465 | 1,399 | 4.7% |
Shareholders' equity | 75,420 | 71,087 | 6.1% | |||
Balance sheet total | 168,157 | 160,116 | 5.0% | |||
Earnings per share, EUR | 0.12 | 0.09 | 35.9% | 0.37 | 0.36 | 2.9% |
Earnings per share (diluted), EUR | 0.12 | 0.09 | 35.5% | 0.37 | 0.36 | 2.2% |
CEO's Review:
"I'm pleased that Digia's long-term profitable growth trend has continued. 2023 was Digia's eighth consecutive year of profitable growth. Our full-year net sales grew by 12.5 per cent to
Our full-year operating profit (EBITA) totalled
Digia's well-rounded business consists of four service areas, of which three increased their net sales during the fourth quarter. Strong growth areas included CRM and ERP solutions based on Microsoft technologies, Digia's AI and automation platform, and knowledge management solutions. In addition, the Swedish company Top of Minds - which became part of Digia at the beginning of the review period - grew in line with plans. Profound skills in analytics, data, and data-related integrations are at the core of Top of Minds' expertise. All of these are Digia's core strengths.
In Microsoft solutions, growth was driven by stronger demand that improved the invoicing rate. Another positive turn in the fourth quarter was that customers put aside their caution in decision-making, and previously postponed
Customers' need to boost their operational efficiency and utilise AI was also evident in the fourth quarter as strong growth in Digia's automation and AI platform. Its net sales saw year-on-year growth of 142 per cent. The platform streamlines and refines customers' business processes. Digia's smart platform is used by organisations such as DigiFinland in the social welfare and healthcare sector, Valio in boosting process efficiency and the
At the end of the review period, we carried out an extensive assessment of how companies and public-sector actors utilise AI. It indicated that 66 per cent of organisations only have preliminary plans for the utilisation of AI and data. Among the responding organizations, 52 per cent have utilized the outputs of data analysis and artificial intelligence to some extent in decision-making and actions. Our well-rounded service portfolio from AI strategy to concrete implementations meets this customer need. In connection with this assessment, we held a competition - the winners, the construction company YIT and the
2023 was the first year in our three-year strategy period. One of our objectives is to increase the share of Digia's total net sales accounted for by international operations to 15 per cent by the end of 2025. Top of Minds, which became part of Digia in the review period, is a step towards achieving this objective. International operations represented 8.7 per cent of net sales in 2023.
Our responsible way of working is the foundation of our strategy. We continued our sustainability efforts in preparation for the EU's Corporate Sustainability Reporting Directive, which will apply to our reporting in 2024. Sustainability goals are included in Digia's objectives for the 2023-2025 strategy period and the incentive scheme. Our goal is to reduce our carbon footprint, and to be a good and attractive employer and a trusted partner to our customers. Our carbon footprint decreased by 37 per cent from the comparable level in 2019. Our customer and personnel satisfaction were at a good level and improved further in 2023. Compared to the previous year, Digia's Customer Net Promoter Score (NPS) improved by 23 per cent and its Employee Net Promoter Score (eNPS) by 25 per cent. We achieved a Silver rating from
Digia is also a responsible partner to its customers when it comes to data security. Towards the end of 2023, we expanded our ISO 27001 data security certification in connection with the annual audit to cover new business functions in Managed Solutions and Financial Platforms as well as our offices in
In 2023, we operated in an uncertain market, but in our view the IT service market will see further good growth in the long term. We have proven our ability to achieve long-term profitable growth and we believe that the trend in the long-term demand for smart digital solutions is strong. This development is supported by new opportunities opened up by automation and AI in data utilisation. A state-of-the-art business platform and the secure utilisation of smart solutions comprise an increasingly essential success factor for all organisations.
I would like to thank all of Digia's personnel, customers, shareholders and other partners for 2023, a year of sustainable growth!"
Profit guidance for 2024
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 Financial Statement Bulletin, two business reviews, and half-year interim report as follows:
- Business Review 1-3/2024: Wednesday,
8 May 2024 at8:00 am EEST -
Half-year Interim Report 1-6/2024: Friday,
9 August 2024 at8:00 am EEST -
Business Review 1-9/2024: Friday,
25 October 2024 at8:00 am EEST
The Annual Report will be published on the company's website on Thursday,
For further information, please contact
Timo Levoranta, 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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