Solteq - Softer start to the year
Solteq’s Q1 results were slightly weaker than expected and revenue declined slightly y/y in comparable terms. Revenue was at EUR 13.6m (Evli EUR 14.2m) and adj. EBIT at EUR -0.2m (Evli EUR 0.2m). Solteq announced the initiation of a cost savings program concerning parts of the Retail & Commerce segment.
- Net sales in Q1 were EUR 13.6m (EUR 16.9m in Q1/23), slightly below our estimates (Evli EUR 14.2m). Revenue declined 19.7% y/y in Q1 and 3.8% in comparable terms.
- The operating profit and adj. operating profit in Q1 amounted to EUR -0.2m respectively (EUR -0.1m/-0.7m in Q1/23), slightly below our estimates (Evli EUR 0.2m).
- Solteq’s Q4 was impacted by write-offs of activated product development costs amounting to EUR 7.5m and other charges relating to the change negotiations. The comparable operating result was EUR 0.4m better than the comparison period.
- Retail and commerce: revenue in Q1 amounted to EUR 10.4m (Q1/23: EUR 13.4m) vs. Evli EUR 10.6m. Revenue declined by 21.1% driven by divestments but also minor comparable revenue decline. The adj. EBIT was EUR 0.4m (Q1/23: EUR 0.8m) vs. Evli EUR 0.4m.
- Utilities: Revenue in Q1 amounted to EUR 3.2m (Q1/23: EUR 3.5m) vs. Evli EUR 3.6m. The adj. EBIT was EUR -0.7m (Q1/23: EUR -1.5m) vs. Evli EUR -0.2m.
- Guidance for 2024 (reiterated): Solteq expects the comparable revenue (2023: EUR 54.2m) to grow and the operating result to be positive.
- Solteq announced the initiation of an efficiency and cost-savings program to improve profitability in the Retail and Commerce segment’s Commerce & Data business unit and Group Administration, seeking annual savings of approx. EUR 3.5m.