Net sales grew by 15.4 per cent in the third quarter, and the EBITA margin was 8.8 per cent. The end of the quarter was strong.
July-
- Net sales:
EUR 38.3 (33.2) million, up 15.4 per cent -
Operating profit (EBITA):
EUR 3.4 (4.0) million, down 16.9 per cent;
EBITA margin: 8.8 (12.2) per cent of net sales -
Operating profit (EBIT):
EUR 2.4 (3.3) million,
operating margin (EBIT): 6.3 (9.9) per cent of net sales -
Earnings per share:
EUR 0.08 (0.10) 1 July 2022 : acquisition ofProductivity Leap Oy 20 September 2022 : agreement on the acquisition of the entire share capital ofAvalon Oy
January-
- Net sales:
EUR 122.0 (111.2) million, up 9.7 per cent -
Operating profit (EBITA):
EUR 10.6 (12.8) million, down 16.8 per cent;
EBITA margin: 8.7 (11.5) per cent of net sales -
Operating profit (EBIT):
EUR 8.5 (10.5) million, down 18.7 per cent;
EBIT margin: 7.0 (9.4) per cent of net sales -
Earnings per share:
EUR 0.27 (0.31) - Return on investment: 11.6 (15.6) per cent
- Equity ratio: 45.6 (48.5) per cent
-
Acquisition of
MOST Digital Oy andProductivity Leap Oy - Digia Business Engine management system successfully deployed
- Profit guidance remains unchanged: Digia's net sales will grow year-on-year and its EBITA margin will be over 10 per cent of net sales.
Unless otherwise stated, the comparison figures provided in parentheses refer to the corresponding period of the previous year.
Group key figures
7-9/ 2022 | 7-9/ 2021 | Change, % | 1-9/ 2022 | 1-9/ 2021 | Change, % | 2021 | |||||
Net sales | 38,318 | 33,194 | 15.4% | 122,019 | 111,189 | 9.7% | 155,939 | ||||
Operating profit (EBITA) | 3,354 | 4,035 | -16.9% | 10,630 | 12,772 | -16.8% | 17,739 | ||||
- as a % of net sales | 8.8% | 12.2% | -27.9% | 8.7% | 11.5% | -24.3% | 11.4% | ||||
Operating profit (EBIT) | 2,418 | 3,299 | -26.7% | 8,505 | 10,466 | -18.7% | 14,680 | ||||
- as a % of net sales | 6.3% | 9.9% | -36.4% | 7.0% | 9.4% | -25.5% | 9.4% | ||||
Result for the period | 2,126 | 2,749 | -22.7% | 7,258 | 8,296 | -12.5% | 11,772 | ||||
- as a % of net sales | 5.5% | 8.3% | 5.9% | 7.5% | 7.5% | ||||||
Return on equity, % | 14.1% | 17.6% | 18.3% | ||||||||
Return on investment, % | 11.6% | 15.6% | 16.3% | ||||||||
Cash flow from operations | 16,648 | ||||||||||
Interest-bearing net liabilities | 22,316 | 19,017 | 10,663 | ||||||||
Net gearing, % | 32.2% | 29.3% | 15.7% | ||||||||
Equity ratio, % | 45.6% | 48.5% | 48.0% | ||||||||
Number of personnel at period-end | 1,421 | 1,343 | 5.8% | 1,339 | |||||||
Average number of personnel | 1,427 | 1,334 | 7.0% | 1,387 | 1,329 | 4.4% | 1,334 | ||||
Shareholders' equity | 69,328 | 64,896 | 6.8% | 68,072 | |||||||
Balance sheet total | 155,079 | 135,358 | 14.6% | 143,040 | |||||||
Earnings per share, EUR | 0.08 | 0.10 | -22.2% | 0.27 | 0.31 | -13.5% | 0.44 | ||||
Earnings per share (diluted), EUR | 0.08 | 0.10 | -22.2% | 0.27 | 0.31 | -11.8% | 0.44 |
CEO's Review:
"2022 has been a year of renewal for Digia. Our most significant innovation has been the introduction of the Digia Business Engine (DBE). Harnessing this platform - coupled with new operating models - will support our future growth and competitiveness. Its concrete benefits will gradually reach their full potential over the coming years.
During the third quarter, we continued to implement our long-term profitable growth strategy, even though customers in some service areas postponed their procurement decisions and projects started up more slowly than expected. In spite of these delays, we picked up speed considerably towards the end of the review period: September was very strong in terms of both net sales and profitability. Our net sales increased by 15.4 per cent to
In the third quarter, net sales grew strongly in data analytics, the Digia Hub subcontracting network, and Microsoft Business Central and Oracle NetSuite ERP solutions. Net sales in these areas increased by more than 30 per cent in relation to the comparison period. Good growth trends also continued in Digia's strong Integration and API business. Our service and maintenance business generated about 62 per cent of net sales, and the project business about 38 per cent.
The third quarter was also strong in terms of sales, and we recorded 27 per cent more sales in July-September than in the corresponding period of the previous year. Sales were weighted towards the end of the quarter: 76 per cent of third-quarter sales were recorded in September. In terms of contract value, September was one of the best months for sales in Digia's history.
During the review period, CSC -
The Digia Hub subcontracting network proved its strength during the review period. Although resourcing projects through Digia Hub increases subcontracting costs, from a strategic standpoint it provides a flexible channel for resourcing projects when a particular type of expertise is required or when there is an urgent need for resources. At the end of the review period, a total of 411 subcontractors were working in our customer projects (212 subcontractors on
In January-September, our net sales grew by 9.7 per cent to
I am particularly pleased that we have been able to scale up our business growth with the companies we have acquired. In spring 2022, we acquired a SaaS robotics platform based on
Digia's strategy is to generate sustainable growth. This means lifelong learning, continuous dialogue with customers, and renewing our business and service offering. During the review period, we completed the renewal of our Intelligent Solutions service area, which means we can now offer a comprehensive range of data-driven services. In September, we joined forces with Avalon, a company that has been focusing on customer experience development and digital marketing. The acquisition was completed on
Digia is perfectly placed to continue its sustainable growth, even though the global economic situation is bringing uncertainty to the market. We believe that the strong underlying demand for digital solutions will continue, and that our offering will meet our customers' needs. We are also seeing indications in the market that customers are reducing the number of suppliers they use, and are consolidating their procurements on the strongest players. We believe that this will open up new opportunities for Digia as well.
I would like to warmly thank all of our customers, Digia's own professionals and our partners for their good cooperation in this challenging global situation. The smart solutions of the future will be built together."
Events after the review period
On 20 September, we announced that we would acquire the entire share capital of
Briefing invitation
A briefing for analysts will be held at
The material and presentation for the event will be available from
Financial reporting in 2023
Digia will publish its 2022 Financial Statement Bulletin on Friday
- The 1-3/2023 Business Review will be published on Thursday
4 May 2023 at3:00 pm . -
The 1-6/2023 Half-year Report will be published on Thursday
10 August 2023 at3:00 pm . -
The 1-9/2023 Business Review will be published on Friday
27 October 2023 at3:00 pm .
For further information, please contact:
President & CEO
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