Increased net sales and stable financial positionPublished 15 Jul 2020
Knowit has increased net sales and improved its profit and margin for the second quarter 2020, despite the market being affected by the extensive measures taken due to covid-19. Net sales for the second quarter increased to SEK 857.6 (844.6) million, profit increased to SEK 72.7 (65.3) million, and the margin increased to 8.5 (7.7) percent.
The largest business area Solutions has had a strong development and improved both profit, net sales, and margin. Experience has improved its profit and margin, while Insight has ongoing challenges exacerbated by covid-19.
“The profit and margin have been positively affected by the governmental support we have been granted. However, the increased ned sales are not affected by any support; we are growing on our own, thanks to a strong offer that remains attractive to our clients,” says Per Wallentin, CEO and President.
Knowit’s largest business area Solutions continues to show strong development with high service utilization and delivery capacity. Within the business area Experience, the development has been positive and as an effect of improved efficiency, Experience delivers a higher profit and better margin as compared with the corresponding periods last year. Knowit’s smallest business area Insight has had ongoing challenges during the quarter and first six months of the year. The strong slowdown in demand during the spring has affected Insight heavily.
“Covid-19 has required major sacrifices for many citizens. With digital technology, we can soften the blow of these sacrifices. New behavior patterns are gaining ground as a result of the pandemic. Demand for digitalization services will likely be strengthened by the new circumstances,” says Per Wallentin.
“The development of covid-19 has meant that we have changed our work methods. Since the second half of March, we have been observing the recommendations of the Public Health Agency of Sweden, such as teleworking, travel restrictions, digital meetings, and cancelled client events. The business model of our largest business area Solutions has proved to work particularly well under these circumstances,” says Per Wallentin.
The support offered by the government has had a positive impact on profit and margin, in particular through lower employer’s contributions. Knowit is continuously adapting its organization to the changing circumstances and following daily developments, to quickly take action when needed.
For more detailed information on the results of the second quarter, please refer to the interim report available on Knowit's website.