Sound net sales growth and positive net recruitmentPublished 25 Oct 2022
Knowit is seeing continued strong demand for digitalization projects on all Nordic markets. The sales growth is strong, though the margin has weakened compared with in the previous year, primarily as a result of investments in recruitment and existing staff, combined with a weaker development than expected in the business area Insight. Net sales in the quarter increased by 27.7 percent, with an adjusted EBITA margin of 6.2 percent. Net sales were SEK 1,520.9 (1,190.9) million and the EBITA profit, adjusted for acquisition and integration costs, was SEK 94.5 (105.3) million. On the whole, Knowit is seeing high demand and continued positive recruitment in the areas where demand is strong.
“Knowit has developed well during the quarter and I am proud of the drive and commitment found throughout our organization. We are seeing continued high demand for our services, but are also humble to the challenges that the increased uncertainty in our surroundings will entail. Three of our four business areas have had a good development during the quarter, while we are seeing a weaker result in the business area Insight, mainly attributable to the Finnish market, where we have seen that clients have been hesitant since Russia’s invasion of Ukraine began earlier this year. We are succeeding well with our recruitment work during the quarter and have welcomed many new employees to Knowit, which is very pleasing,” says Per Wallentin, CEO and President.
The quarter is characterized by a very good development for the business area Connectivity, with high growth and profitability in both Sweden and Poland, and sound growth in the business area Solutions, especially in the Norwegian market. The business area Experience is also showing sound growth and an improved margin compared with in the previous year. Growth in Connectivity was 33.1 percent, with an EBITA margin of 11.7 (9.2) percent, whereas Experience grew by 25.1 percent with an EBITA margin of 6.3 (5.3) percent.
Knowit’s strategy to combine organic growth with supplementary acquisitions has been one of the driving forces behind the Nordic consolidation in the last few years. During the third quarter, the Group’s management consultancy operations have been strengthened through the acquisition of Ascend and its sister company Ionic. In the last year, Knowit has worked in a structured way to broaden and strengthen its offer in management consulting, both geographically and as regards competence. After the acquisitions, the Group has almost 500 management consultants in the Nordic region.
“We are pleased to conclude that we are seeing strong organic growth within the Group during the quarter – a prerequisite for our continued growth and attractiveness to clients and employees. Demand connected to projects that both drive increased digitalization and contribute to the shift towards a more sustainable world remains strong. Knowit is now a significant player on the Nordic market, with a broad offer centered on digitalization for a more sustainable world,” says Per Wallentin.
For more detailed information on the results for the third quarter, please see the interim report available on Knowit’s website and appended this press release.
Presentation of the interim report
Knowit will hold a presentation of the Interim Report for January–September 2022 on October 25 at 10 AM. The presentation will be held in English. President and CEO Per Wallentin and CFO Marie Björklund comment on the results and answer questions.
Link to the audiocast: https://www.investis-live.com/knowit/633ad4276a85cc1200355ee7/dqes
Phone numbers for the audiocast:
Denmark 80 82 00 35
Denmark (local) 89 87 50 45
Finland (local) 075 3252542
Norway 800 24 973
Norway (local) 81 503 308
Sweden 0200 123 717
Sweden (local) 010 884 80 16
United Kingdom 0800 640 6441
United Kingdom (local) 020 3936 2999
USA 1 855 9796 654
USA (local) 1 646 664 1960
Other countries +44 20 3936 2999
PIN code: 926380
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 and the Securities Market Act. This press release was made public through the agency of President and CEO Per Wallentin, at 7:30 AM CEST on October 25 2022.