Innofactor - Some challenges but still quite good
Innofactor’s Q2 saw continued good growth, better than anticipated, up 18.6% y/y to EUR 20.1m (Evli EUR 19.4m). EBITDA was below expectations at EUR 1.8m (Evli EUR 2.3m), with the EBITDA-margin improving slightly y/y. Guidance reiterated, Innofactor’s net sales and EBITDA in 2023 are expected to increase compared with 2022.
- Net sales in Q2 amounted to EUR 20.1m (EUR 16.9m in Q2/22), slightly above our estimates (Evli EUR 19.4m). Net sales in Q2 grew 18.6% y/y and 11.1% organically. Net sales increased in Finland, Sweden and Norway in local currency despite weak exchange rates but declined in Denmark.
- EBITDA in Q2 was EUR 1.8m (EUR 1.4m in Q2/22, below our estimates (Evli EUR 2.3m), at a margin of 8.8%.
- Operating profit in Q2 amounted to EUR 1.0m (EUR 0.7m in Q2/22, below our estimates (Evli EUR 1.5m), at a margin of 4.9%.
- The second quarter was affected by Easter and other weekday holidays and usage of flexi leaves around these. onboarding of a notable number of new employees also reduced invoicing rates during April-May, while Innofactor in June achieved its highest single-month invoicing rate since going public.
- Order backlog at EUR 77.3m, at previous year levels. Price competition in the market during the second quarter was exceptionally intense, and Innofactor did not win any new significant tenders during the quarter.
- Guidance for 2023 (reiterated): Innofactor’s net sales is expected to increase from 2022 (EUR 77.1m) and EBITDA is expected to increase from 2022 (EUR 7.8m).