Solteq - Investments weakened profitability
Solteq’s Q4 was below our lowered pre-Q4 expectations, with revenue at EUR 18.3m (Evli EUR 18.0m) and adj. EBIT at EUR 1.4m (Evli EUR 2.0m). Guidance for 2022: group revenue is expected to grow clearly and the operating profit to improve. Dividend proposal EUR 0.10 per share (Evli EUR 0.11).
- Net sales in Q4 were EUR 18.3m (EUR 16.4m in Q4/20), in line with our estimates (Evli EUR 18.0m). Growth in Q4 amounted to 11.4% y/y, of which the larger part was organic growth.
- The operating profit and adj. operating profit in Q3 amounted to EUR 1.3m and 1.4m respectively (EUR 1.8m/2.0m in Q4/20), below our estimates (Evli EUR 2.0/2.0m). Solteq Software’s profitability was below expectations due to investments into product development and internationalization.
- Solteq Digital: revenue in Q4 amounted to EUR 11.7m (Q4/20: EUR 10.6m) vs. Evli EUR 11.4m. Growth amounted to 10.3%. The adj. EBIT was EUR 1.4m (Q4/20: EUR 0.9m) vs. Evli EUR 1.2m. Demand in key areas, such as digital business and commerce solutions, is expected to remain good during 2022.
- Solteq Software: Revenue in Q4 amounted to EUR 6.6m (Q4/20: EUR 5.8m) vs. Evli EUR 6.6m. The adj. EBIT was EUR 0.0m (Q4/20: EUR 1.1m) vs. Evli EUR 0.8m. Growth was 13.3%. The business outlook is expected to remain positive.
- Guidance for 2022: group revenue is expected to grow clearly and operating profit to improve.
- Dividend proposal: Solteq’s BoD proposes a dividend of EUR 0.10 per share (Evli EUR 0.11).