Vitec Software Group Interim report January - September 2022
SUMMARY OF INTERIM PERIOD, JANUARY–SEPTEMBER 2022
• Net sales SEK 1,400 million (1,150), an increase of 22%
• Recurring revenues SEK 1,180 million (975), an increase of 21% including 10% organic
• EBITA SEK 411 million (327), an increase of 26%
• EBITA margin 29% (28)
• Operating profit SEK 250 million (213), an increase of 17%
• Operating margin 18% (18)
• Earnings per share before dilution SEK 5.05 (4.55)
• Cash flow from operating activities SEK 489 million (430)
SUMMARY OF INTERIM PERIOD, JULY–SEPTEMBER 2022
• Net sales SEK 505 million (380), an increase of 33%
• Recurring revenues SEK 417 million (336), an increase of 24% including 11% organic
• EBITA SEK 161 million (109), an increase of 47%
• EBITA margin 32% (29)
• Operating profit SEK 92 million (71), an increase of 30%
• Operating margin 18% (19)
• Earnings per share before dilution SEK 1.76 (1.48)
• Cash flow from operating activities SEK 87 million (89)
• Acquisition of ABS Laundry Business Solutions; acquisition of Scanrate completed
Responsible and reliable growth produces strong figures
Sales for the third quarter of 2022 totaled SEK 505 million and our pro forma net sales exceeded SEK 2 billion for the first time – a new record. Compared with the corresponding year-earlier quarter, sales increased by 33% and our EBITA rose by an impressive 47%. These strong figures can be attributed to continued solid organic growth of 10% for the first nine months of the year, as well as the ongoing efforts with the integration of our value-generating acquisitions. With our robust financial position and strong cash flow, we are confident in our continued growth.
Two acquisitions were completed during the quarter: the Dutch company ABS Laundry Business Solutions and Danish Scanrate, both of which made positive contributions to the profit for the period. Immediately after the end of the period the fifth acquisition of the year was also completed as we welcomed Finnish Raisoft, which provides digital assessment and decision-making systems for better health care and social services, to our Group. The acquisitions during the quarter, which were larger than previously, also entailed higher acquisition-related one-off costs for the quarter. We continue our acquisition efforts and constantly engage in discussions with a number of interesting candidates, all of which are assessed based on our strict criteria.
Vitec delivers business-critical software solutions that contribute to the value-generating social benefit of our nearly 23,000 customers. Despite the uncertainty around us we see that our solutions help customers with increased digitalization and automation of their core processes. We also notice closer discussions with our customers who wish to extract even greater benefit from our products. With regard to the general state of the economy, we currently see marginal direct effects only, but we follow the development carefully.
Backed by strong finances, Vitec continues to grow responsibly and reliably through continual development of our business units, as well as acquisitions of well-established and profitable vertical software companies.
Olle Backman, CEO, Vitec Software Group