ETTEPLAN Q3 2021: Good growth continued
Stock exchange release – Published: 28.10.2021 9:00:00
ETTEPLAN OYJ Interim Report October 28, 2021, at 9:00 a.m.
ETTEPLAN Q3 2021: Good growth continued
Key points July-September 2021
- The Group’s revenue grew by 21.1 per cent and was EUR 66.9 million (7-9/2020: EUR 55.2 million). At comparable exchange rates, revenue increased by 20.9 per cent.
- Operating profit (EBITA) improved by 9.2 per cent and was EUR 5.7 (5.2) million, or 8.5 (9.5) per cent of revenue.
- Operating profit (EBIT) improved by 7.6 per cent and was EUR 4.6 (4.3) million, or 6.9 (7.7) per cent of revenue.
- Operating cash flow was EUR 0.2 (0.2) million.
- Basic earnings per share were EUR 0.14 (0.13).
Key points January-September 2021
- The Group’s revenue grew by 13.4 per cent and was EUR 214.9 million (1-9/2020: EUR 189.4 million). At comparable exchange rates, revenue increased by 12.6 per cent.
- Operating profit (EBITA) improved by 17.1 per cent and was EUR 21.2 (18.1) million, or 9.9 (9.5) per cent of revenue.
- Operating profit (EBIT) improved by 17.2 per cent and was EUR 17.9 (15.3) million, or 8.3 (8.1) per cent of revenue.
- Operating cash flow was EUR 13.9 (20.5) million.
- Basic earnings per share were EUR 0.55 (0.46).
- Etteplan specifies its financial guidance concerning Revenue for 2021: Revenue in 2021 is estimated to be EUR 295-310 million.
Etteplan also monitors non-IFRS performance measures, because they provide additional information on Etteplan’s development. More information on performance measures is provided at the end of the release.
| Key figures | |||||
| EUR 1,000 | 7-9/2021 | 7-9/2020 | 1-9/2021 | 1-9/2020 | 1-12/2020 |
| Revenue | 66,860 | 55,221 | 214,853 | 189,408 | 259,702 |
| Operating profit (EBITA) | 5,701 | 5,222 | 21,174 | 18,087 | 26,172 |
| EBITA, % | 8.5 | 9.5 | 9.9 | 9.5 | 10.1 |
| Operating profit (EBIT) | 4,597 | 4,274 | 17,921 | 15,289 | 22,380 |
| EBIT, % | 6.9 | 7.7 | 8.3 | 8.1 | 8.6 |
| Basic earnings per share, EUR | 0.14 | 0.13 | 0.55 | 0.46 | 0.69 |
| Equity ratio, % | 42.1 | 40.1 | 42.1 | 40.1 | 40.5 |
| Operating cash flow | 227 | 206 | 13,937 | 20,485 | 37,997 |
| ROCE, % | 12.0 | 12.6 | 15.6 | 14.9 | 16.0 |
| Personnel at end of the period | 3,625 | 3,291 | 3,625 | 3,291 | 3,267 |
President and CEO Juha Näkki:
The third quarter of the year got off to a slower start than we expected. After a busy first half of the year, our personnel and customers took a lot of time off, which meant that the start of projects took longer than expected. The pandemic continued to have a slight impact on the market situation and the global shortage of components began to be reflected in the demand for engineering services. Some engineering projects were postponed and some were cancelled. Nevertheless, the general demand situation remained fairly good.
Our growth rate remained good in spite of minor hindrances in the market. We invested in organic growth by establishing several new teams and we continued to develop our service offering. We also made two acquisitions during the review period: we acquired Adina Solutions Oy in Finland and BST Buck Systemtechnik GmbH in Germany. Growth was particularly strong in the Software and Embedded Solutions service area, again exceeding 30 per cent.
Market hindrances and organic investments affected our operational efficiency and our profitability declined slightly. Managed services – and continuous services in particular – represent a large share of business in the Technical Documentation Solutions service area. For this reason, the impacts of the market conditions were minor and the service area again reached an excellent level of profitability that exceeded our target.
Even though the pandemic and the component shortage maintain uncertainty in the markets, the fourth quarter started in a relatively good market situation. In the beginning of the fourth quarter, pandemic-related restrictions have been lifted in most of our operating countries and the transition to the new normal has begun. Due to the slow start of the third quarter we are specifying our financial guidance regarding Revenue. Towards the end of the review period the number of new engineering projects grew at accelerated pace and our operating efficiency improved. This creates the conditions for continued profitable growth in the final quarter 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 COVID-19 pandemic continues to have an impact on the global economy and market situation. In addition, the global component shortage is also reflected in the demand for engineering services. Our customers continue to invest in digital services and engineering solutions, which is why we expect the demand situation to remain at a fairly good level during the rest of the year in spite of the uncertainties.
Specified 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 specifies its previous guidance for Revenue and issues the following estimate:
Revenue in 2021 is estimated to be EUR 295-310 million, and
operating profit (EBIT) in 2021 is estimated to be EUR 25-28 million.
Previous financial guidance 2021 (updated on August 11, 2021)
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.
Disclosure procedure
This stock exchange release is a summary of Etteplan's January-September 2021 Interim Report. The complete Interim 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, October 28, 2021
Etteplan’s President and CEO Juha Näkki will present the Company’s results for January-September 2021 in a conference call and a live webcast, held in English language, on October 28, 2021 starting at 10.30 a.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 7479 0360 and insert the conference PIN code 295290. 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/q3-2021. The webcast starts at 10.30 a.m. Finnish time (EEST). A recording of the webcast will be available later at www.etteplan.com.
Espoo, October 28, 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 3,600 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
