Innofactor - Subpar performance
Innofactor’s Q2 results were weaker than expected. Net sales declined 2% y/y to EUR 16.9m (Evli EUR 17.7m) due to a weakened invoicing ratio and individual project delivery challenges. Q2 EBIT of EUR 0.7m was also clearly weaker than in the comparison period and our estimates (Evli EUR 1.4m).
- Net sales in Q2 amounted to EUR 16.9m (EUR 17.5m in Q2/21), slightly below our estimates (Evli EUR 17.7m). Net sales in Q2 declined 2.0% y/y. Net sales increased in Norway and Denmark but decreased in Finland and Sweden due to a weakened invoicing ratio and challenges in individual project deliveries.
- EBITDA in Q2 was EUR 1.4m (EUR 2.1m in Q2/21, below our estimates (Evli EUR 2.1m), at a margin of 8.1%. EBITDA was positive in all operating countries except in Sweden.
- Operating profit in Q2 amounted to EUR 0.7m (EUR 1.3m in Q1/21, below our estimates (Evli EUR 1.4m), at a margin of 3.9%.
- Order backlog at EUR 77.2m, up 6.1% y/y. According to Innofactor the sales performance was strong in Q2. New orders included for instance Senate properties (approx. EUR 2.2m), Danish pharmaceuticals company (approx. EUR 2.1m) and the State Treasury of Finland (approx. EUR 5.5m).
- In June, Innofactor acquired Invenco Ltd, a company specializing in data and analytics, with some 50 employees and EUR 6m revenue.
- Guidance for 2022 (reiterated): Innofactor’s net sales is expected to increase from 2021 (EUR 66.4m) and EBITDA is expected to increase from EUR 7.5m, which would have been EBITDA without the proceeds of EUR 2.6m from the sale of the Prime business.