ETTEPLAN Q2 2021: Strong and profitable growth
Stock exchange release – Published: 11.08.2021 13:00:00
ETTEPLAN Oyj Half Year Financial Report August 11, 2021, at 1:00 pm
ETTEPLAN Q2 2021: Strong and profitable growth
Key points April-June 2021
- The Group’s revenue grew by 19.3 per cent and was EUR 75.0 million (4-6/2020: EUR 62.9 million). At comparable exchange rates, revenue increased by 18.1 per cent.
- Operating profit (EBITA) improved by 24 per cent and was EUR 7.8 (6.3) million, or 10.4 (10.0) per cent of revenue.
- Operating profit (EBIT) improved by 25.6 per cent and was EUR 6.7 (5.4) million, or 9.0 (8.5) per cent of revenue.
- Operating cash flow was EUR 12.4 (18.0) million.
- Basic earnings per share were EUR 0.20 (0.16).
Key points January-June 2021
- The Group’s revenue grew by 10.3 per cent and was EUR 148.0 million (1-6/2020: EUR 134.2 million). At comparable exchange rates, revenue increased by 9.2 per cent.
- Operating profit (EBITA) improved by 20.3 per cent and was EUR 15.5 (12.9) million, or 10.5 (9.6) per cent of revenue.
- Operating profit (EBIT) improved by 21 per cent and was EUR 13.3 (11.0) million, or 9.0 (8.2) per cent of revenue.
- Operating cash flow was EUR 13.7 (20.3) million.
- Basic earnings per share were EUR 0.41 (0.33).
- Etteplan updates its financial guidance concerning revenue for 2021: Revenue in 2021 is estimated to be EUR 295-315 million.
Etteplan also monitors non-IFRS performance measures, because they provide additional information on Etteplan’s development. More information on performance measures is provided on pages 19-20.
| Key figures | |||||
| EUR 1,000 | 4-6/2021 | 4-6/2020 | 1-6/2021 | 1-6/2020 | 1-12/2020 |
| Revenue | 75,043 | 62,895 | 147,993 | 134,187 | 259,702 |
| Operating profit (EBITA) | 7,794 | 6,285 | 15,473 | 12,865 | 26,172 |
| EBITA, % | 10.4 | 10.0 | 10.5 | 9.6 | 10.1 |
| Operating profit (EBIT) | 6,729 | 5,359 | 13,323 | 11,015 | 22,380 |
| EBIT, % | 9.0 | 8.5 | 9.0 | 8.2 | 8.6 |
| Basic earnings per share, EUR | 0.20 | 0.16 | 0.41 | 0.33 | 0.69 |
| Equity ratio, % | 40.3 | 37.7 | 40.3 | 37.7 | 40.5 |
| Operating cash flow | 12,421 | 18,033 | 13,710 | 20,279 | 37,997 |
| ROCE, % | 17.3 | 14.6 | 17.6 | 16.2 | 16.0 |
| Personnel at end of the period | 3,491 | 3,297 | 3,491 | 3,297 | 3,267 |
President and CEO Juha Näkki:
As expected, our growth accelerated in the second quarter of the year and our revenue grew to a new record level. The comparison period was fairly weak due to the COVID-19 pandemic, but despite that our growth of nearly 20 per cent and organic growth of more than 10 per cent were strong indications of our growth ambition and competitiveness in the improving market situation. We were particularly satisfied with the Software and Embedded Solutions service area’s strong growth of more than 30 per cent.
Our growth was also profitable and, thanks to good operational efficiency, we once again exceeded our target level for EBITA of 10 per cent. Profitability was at a good level in all of our service areas. We were especially pleased with the excellent profitability of more than 12 per cent achieved by the Technical Documentation Solutions service area.
During the review period we accelerated our recruitment and continued our investments in strategy implementation, which had been suspended due to the pandemic. These factors had a slight impact on our cost structure. We also carried out two acquisitions in line with our growth strategy. We acquired the Germany-based F.I.T. for the Technical Documentation Solutions service area and the Poland-based Skyrise.tech for the Software and Embedded Solutions service area. F.I.T. strengthens our competence in the defense industry, while Skyrise.tech significantly increases our competence in cloud services and software applications. After the review period, we announced the acquisition of Adina Solutions Oy in Finland for the Technical Documentation Solutions service area.
We intend to continue to actively assess new acquisition opportunities and we strengthened our organization during the review period to support unorganic growth and reaching of our growth target. Going forward, our current CFO Per-Anders Gådin will be in charge of acquisition processes and business development. We have appointed Helena Kukkonen as our new CFO.
Due to the positive development in the first half of the year, we are upgrading our financial guidance for revenue. While the pandemic continues to affect our business and the virus variants maintain uncertainty, the orders received by our customers have grown substantially, which is why we believe that the good market situation will continue in the second half of the year.
Market outlook 2021
The most important factor affecting Etteplan’s business is the global development of the machinery and metal industry. The prolongation of the global COVID-19 pandemic continues to have an impact on the global economy and market situation and is still causing uncertainty in the markets. Nevertheless, orders received by customers have grown substantially and investments in product development and production continue. Consequently, demand was at a good level and we expect this to continue during the remainder of the year.
Updated financial guidance 2021
Etteplan changed its financial guidance practice at the beginning of 2021. Going forward, Etteplan issues guidance for revenue and operating profit (EBIT) as a numerical range. Etteplan updates its previous guidance concerning revenue and issues the following estimates:
Revenue in 2021 is estimated to be EUR 295-315 million, and
operating profit (EBIT) in 2021 is estimated to be EUR 25-28 million.
Previous financial guidance 2021 (updated May 5, 2021)
Revenue in 2021 is estimated to be EUR 285-305 million, and
operating profit (EBIT) in 2021 is estimated to be EUR 25-28 million.
Disclosure procedure
This stock exchange release is a summary of Etteplan's January-June 2021 Half Year Financial Report. The complete Half Year Financial Report is attached to this stock exchange release in pdf format and is also available on Etteplan's website at www.etteplan.com.
Conference call and live webcast today, August 11, 2021
Etteplan’s President and CEO Juha Näkki will present the Company’s results for January-June 2021 in a conference call and a live webcast, held in English language, on August 11, 2021 starting at 2.30 p.m. Finnish time (EEST).
To participate in the conference call please dial 5-10 minutes prior to the start of the conference to +358 (0)9 8171 0310 and insert the conference PIN code 47542088#. Questions can be asked in Finnish and in English after President and CEO’s presentation only through conference call connection.
Juha Näkki’s presentation can be followed as a live webcast on https://etteplan.videosync.fi/q2-2021 . The webcast starts at 2.30 p.m. Finnish time (EEST). A recording of the webcast will be available later at www.etteplan.com .
Espoo, August 11, 2021
Etteplan Oyj
Board of Directors
Additional information:
Juha Näkki, President and CEO, tel. +358 10 307 2077
Outi Torniainen, SVP, Marketing and Communications, tel. +358 10 307 3302
The information presented herein has not been audited.
Releases and other corporate information are available on Etteplan's website at www.etteplan.com.
DISTRIBUTION:
Nasdaq Helsinki
Major media
www.etteplan.com
Documents and links
Etteplan in brief
Etteplan provides solutions for software and embedded solutions, solutions for industrial equipment and plant engineering and technical documentation solutions to the world’s leading companies in the manufacturing industry. Our services are geared to improve the competitiveness of our customers’ products, services and engineering processes throughout the product life cycle. The results of Etteplan’s innovative engineering can be seen in numerous industrial solutions and everyday products. In 2020, Etteplan had a turnover of approximately EUR 260 million. The company currently has over 3,500 professionals in Finland, Sweden, the Netherlands, Germany, Poland, Denmark and China. Etteplan's shares are listed on Nasdaq Helsinki Ltd under the ETTE ticker. www.etteplan.com
