Administer - Slightly better than expected profitability
Administer’s Q2 net sales declined by 1.3% y/y, mainly attributable to the demand for personnel leasing, which is more dependent on economic cycles than the groups other service sectors. EBITDA improved to EUR 1.9m (Q2’23: EUR 0.4m), slightly beating our estimate of EUR 1.7m.
- Net sales in Q2 amounted to EUR 19.3m (EUR 19.6m in Q2’23). Net sales in Q2 declined 1.3% y/y, mainly driven by a decline in Econia’s net sales, which declined by 4.5%. Both the groups and Econia’s decline in net sales showed signs of stabilization in the second quarter compared to Q1’24.
- EBITDA and EBITA in Q2 were EUR 1.9m (Q2’23: EUR 0.4m) and EUR 1.4m (Q2’23: EUR 0.0m) respectively (Evli EUR 1.7m/1.2m). The EBITDA-margin improved to 9.6% compared with 2.3% in Q2’23. The significant improvement in profitability was mainly attributable to the successful implementation of the company's cost savings program, as well as a weaker comparison period. For H1’24, EBITDA was EUR 3.6m (H1’23: EUR 1.6m), improving some 131%.
- During Q2, Administer announced that it will acquire a majority stake in its associate company Kuntalaskenta, with the transaction expected to be finalized in Q3’24. This will slightly boost revenue, while having a slightly negative impact on the EBITDA.
- Q2 included a one-off positive impact of EUR 0.5m on net financials due to the repayment of an old, subordinated loan related to Adner.
- Guidance for 2024 (reiterated): Net sales is estimated to be EUR 76-81m and EBITDA-margin to be 6-9%.