Knowit: Focus on change in a challenging market
The quarter has been characterized by a strong focus on initiating and implementing cost-reducing measures to deal with a weaker market. The net sales for the quarter increased by 1.5 percent, combined with an adjusted EBITA margin of 4.9 percent. Net sales were SEK 1,544.1 (1,520.9) million and the EBITA profit, adjusted for acquisition and integration costs, was SEK 74.9 (94.5) million. The trend noted throughout 2023, with longer sales cycles and projects being postponed, has continued into the third quarter. The market uncertainty remains high and we are facing challenges in keeping the debit ratio high and even.
"We have made powerful efforts during the quarter to meet the changing market circumstances. An important priority is to ensure that our operations are adapted for profitability rather than growth. At the same time, it is important that we are agile and use the growth opportunities given. Retaining a strong focus on new sales and close dialogues with clients regarding existing projects has a high priority, both to increase visibility going forward and to maintain prices in an increasingly competitive situation. We are working hard to reallocate our resources and focus efforts on sectors and segments where demand remains strong," says Per Wallentin, CEO and President.
While all Nordic markets are affected by weaker market conditions, the largest challenges have been on the Swedish market during the quarter. This applies particularly to sectors like retail, property, and parts of the public sector. At the same time, demand remains high for defense solutions and in cybersecurity, law, and banking and finance.
"The transition to a sustainable society through innovative solutions for continued digitalization is a key to success. Knowit has a strong position as a Nordic digitalization partner, where we - in the shorter term - have high demands on our ability to continue working with all the initiatives now being implemented to increase our long-term profitability," says Per Wallentin.
For more detailed information on the results for the third quarter, please see the interim report available on Knowit's website (https://www.knowit.eu/financial-information) and appended this press release.
Presentation of the interim report
Knowit will be presented the interim report today, Wednesday October 25. CEO and President Per Wallentin and CFO Marie Björklund will comment on the results and respond to questions.
The report will be available at https://www.knowit.eu/financial-information/
The presentation starts at 10.00 am (CEST) and will be held in English.
Link to the audiocast: https://www.investis-live.com/knowit/6513eb176dedf60c00e55edd/hdrt
Telephone numbers to the audiocast:
Sweden +46 8 5051 0031
United Kingdom +44 207 107 06 13
Other international numbers are available HERE (https://services3.choruscall.ch/NUMBERS/Attended_Dial_In_Numbers.pdf)
Pin: 43405119
No advance notification is necessary. After the presentation, a recording of the webcast will be available at https://www.knowit.eu/financial-information/
The information contained herein is such as shall be made public by Knowit, in accordance with the EU Market Abuse Regulation. This press release was made public through the agency of President and CEO Per Wallentin, at 7:30 AM CEST on October 25 2023.
For more information, please contact:
Marie Björklund, CFO, +46 (0)70 144 98 02 or marie.bjorklund@knowit.se
Christina Johansson, Head of Communications, +46 (0)70 542 1734 or christina.johansson@knowit.se
Annika Billberg, Investor Relations, +46 (0)70 267 97 91 or annika.billberg@knowit.se
About Knowit
We are digitalization consultants and a Nordic powerhouse for the digital business models of the future. Our vision is to create a sustainable and humane society through digitalization and innovation. Knowit supports its clients in the digital transformation and stands out among other consultancy firms through its decentralized organization and agile work methods in client assignments. The operations are divided into four business areas - solutions, Experience, Connectivity, and Insight - which offer services in bespoke system development, digital customer experiences, the internet of things, cloud, cybersecurity, and management consultancy. Competences from several business areas are often combined in client projects.
Knowit was founded in 1990 and has around 4,380 employees, mainly in the Nordic countries, but also in operations in Germany and Poland. Knowit AB (publ) has been listed on the stock market since 1997 and is currently listed on Nasdaq OMX Stockholm Mid Cap. For more information about Knowit, please visit knowit.eu.