Columbus: Continued growth momentum in Cloud ERP business lines in Q2 2024 - streamlining to reach EBITDA15 goal
Today, Columbus reported its Q2 2024 report. The company’s revenue growth of 9% YoY (8% growth adjusted for acquisitions and currency) was in line with expectations, driven by a strong performance in its Cloud ERP business lines. Despite an improved EBITDA margin of 7.0% in Q2 2024 (4.6% in Q2 2023), Columbus has streamlined its organization to reach its goal of an EBITDA margin of 15% by the end of 2026.
Looking at the first half of 2024 (YTD), Columbus’ growth is primarily driven by positive momentum in its Cloud ERP business lines, Dynamics and M3, growing 17% and 13%, respectively. On the other hand, the third largest business area, Digital Commerce, declined by -10%. Geographically, the highest growth is in the UK (53% YoY including the newly acquired company Endless Gain) and Denmark (31% YoY), while the weakest markets have been the US (-4% YoY) and Sweden (-4% YoY).
In Q2 2024, EBITDA amounted to DKK 30m (DKK 12m in Q2 2023), corresponding to an EBITDA margin of 7.0% (4.6% in Q2 2023). In Q2 2024, one of the important consulting KPIs, efficiency, was 63% (66% in Q2 2023). Lower-than-expected efficiency in some parts of the business implies that Columbus has reduced its organization by approx. 60 FTEs with a focus on its Digital Commerce and Security business lines. This is expected to have full effect in Q4 2024.
Full-year 2024 expectations are maintained, implying that organic revenue growth is expected in the range of 8-10% and the EBITDA margin is expected to be in the range of 9-10%. Read the full Q2 2024 report here: https://ir.columbusglobal.com/news-releases/news-release-details/interim-report-q2-2024
Tomorrow at 13:00, Columbus’ CEO & President Søren Krogh Knudsen and Group CFO Brian Iversen will present the highlights from the quarter and answer questions from the audience. Sign up and submit your questions via this link: https://www.inderes.dk/videos/columbus-presentation-of-interim-report-q2-2024
Disclaimer: HC Andersen Capital receives payment from Columbus for a Digital IR/Corporate Visibility subscription agreement. /Kasper Lihn 12:00, 22 August 2024.
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Columbus
Columbus är ett IT-bolag. Bolaget erbjuder konsultation och lösningar inom digital transformation, molnbaserade lösningar, analysprogram samt diverse IoT lösningar. Verksamhet innehas på global nivå, med kunder som huvudsakligen återfinns inom detalj-, livsmedels- samt tillverkningsindustrin. Bolaget grundades 1990 och har sitt huvudkontor i Ballerup, Danmark.
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