Administer - Profitability programme showing results
Administer’s Q1 net sales declined by 3.1% y/y, driven by a 14.8% decline in Econia’s net sales. EBITDA improved by some 56% y/y to EUR 1.7m. Overall the report appears more on the positive side, as the impact of the profitability programme is taking effect.
- Net sales in Q1 amounted to EUR 19.0m (EUR 19.6m in Q1/23). Net sales in Q1 declined 3.1% y/y. The decline was mainly attributable to Econia, whose revenue declined by 14.8% driven by the overall economic weakness and the industrial strikes, as well as seasonal fluctuation. Q1 was Administer first quarterly report and comparison period figures had not been posted ahead of the results. On our H1/24 estimate and actual Q1 figures, implied Q2 growth is 5%. We see potential, slight downward pressure, although Econia’s growth is expected to pick up in Q2.
- EBITDA and EBITA in Q1 were EUR 1.7m (Q1/23: EUR 1.1m) and EUR 1.3m (Q1/23: EUR 0.7m) respectively. The EBITDA-margin improved to 9.1% compared with 5.7% in Q1/23. For H1/24, we had estimated an EBITDA improvement of 66%, with Q1 up 56% y/y the figure appears fairly in line with expectations but with potential for improvement. Profitability was aided by the profitability programme initiated in 2023.
- During H1 Administer carried out one acquisition, that of the accounting business of Pohjanmaan Laskenta Oy.
- Guidance for 2024 (reiterated): Net sales is estimated to be EUR 76-81m and EBITDA-margin to be 6-9%.