Information technology Also in Emmen suffered a dip in sales and profits in the first half of the year
IT wholesaler Also, based in Emmen, suffered another setback in the first six months of the 2024 financial year. Both turnover and profit fell significantly. Nevertheless, the company is sticking to its profit forecast for the year as a whole.
24.07.2024, 08:32
SDA
Turnover fell by 11.4 percent to 4.28 billion euros, as the company announced on Wednesday: "This development was influenced by a reluctance to buy in the consumer segment, particularly in Germany, Poland and the Netherlands."
The decline was greatest in the largest segment, Supply, with a drop of almost 15 percent to 2.77 billion euros. The Solutions division also suffered a drop in sales of 5.8 percent to 1.35 billion euros. In contrast, the smallest division, Services, grew by 13.7 percent to 158.9 million euros. In the cloud business, So was able to grow by a quarter.
Profit plummets
The dip in profits was even greater than in turnover. Operating profit before depreciation and amortization (EBITDA) fell by 15.6 percent to 94.1 million euros. Among other things, Also spent 12 million euros on future growth. This included expenditure on IT infrastructure, further expansion of digital platforms and AI-supported applications. Investments were also made in mergers and acquisitions.
All in all, the company only achieved a net profit of 41.6 million euros. That is a decrease of 21 percent.
Thus, Also missed the expectations of the financial community by far. Analysts had expected significantly higher sales and profits. Also had already suffered a significant downturn last year.
Targets confirmed
Nevertheless, Also confirmed its targets for the current year. The company is still aiming for an EBTIDA of 265 to 305 million euros and a return on capital employed (ROCE) of over 25 percent.
There are several reasons for this: So expects the market to perform better in the second half of 2024 compared to the previous year. In addition, organizational measures are expected to accelerate the growth of the digital platforms. Acquisitions in Italy, Austria, Scandinavia and the Czech Republic will also have a positive impact on earnings.
Investments by companies in IT are inevitable sooner or later, explained the new Also Group CEO Wolfgang Krainz. "Thanks to our financial strength and the sales focus of our Group management, we will achieve our short and medium-term goals."
The company has increased its cash position by 31 million to 643 million euros at mid-year. "This puts us in an excellent position to take advantage of further opportunities on the market," it said.
So is also sticking to its medium-term targets: the company is aiming for EBITDA of 350 to 450 million euros in the years 2026 to 2028. ROCE should reach over 30 percent.
