Solteq - Some challenges faced
Solteq’s Q3 was below our expectations, with revenue at EUR 14.9m (Evli EUR 16.4m) and adj. EBIT at EUR 1.2m (Evli EUR 2.0m). Figures were affected by customer project postponements due to the on-going component shortage. Guidance intact: group revenue in 2021 is expected to grow clearly and the operating profit to improve clearly.
- Net sales in Q3 were EUR 14.9m (EUR 13.3m in Q3/20), below our estimates (Evli EUR 16.4m). Growth in Q3 amounted to 12.2% y/y, of which the larger part was organic growth. 22.6% of sales came from outside of Finland.
- The operating profit and adj. operating profit in Q3 amounted to EUR 1.1m and 1.2m respectively (EUR 1.4m/1.4m in Q3/20), below our estimates (Evli EUR 2.0/2.0m). Profitability was affected by the postponement of two larger customer projects in the retail sector due to the on-going component shortage as well higher subcontracting prices due to a shortage of IT-sector specialists.
- Solteq Digital: revenue in Q3 amounted to EUR 9.5m (Q3/20: EUR 9.2m) vs. EUR Evli 10.4m. Growth amounted to 4.3%. The adj. EBIT was EUR 0.9m (Q3/20: EUR 0.8m) vs. Evli EUR 1.1m. Recurring revenue 37.6% of the segment’s revenue. The segment is expected to continue to develop favourably.
- Solteq Software: Revenue in Q3 amounted to EUR 5.4m (Q3/20: EUR 4.1m) vs. Evli EUR 6.0m. The adj. EBIT was EUR 0.3m (Q3/20: EUR 0.5m) vs. Evli EUR 1.0m. Growth was 29.7%. Recurring revenue 31.5% of the segment’s revenue. The segment is expected to continue to develop favourably.
- Guidance for 2021 intact: group revenue is expected to grow clearly and operating profit to improve clearly.