Uncertain market affects the results of the second quarterPublished 20 Jul 2023
During the second quarter of the year, Knowit has been more impacted than previously by a weaker market. Net sales for the quarter increased by 6.9 percent, combined with an adjusted EBITA margin of 4.4 percent. Net sales were SEK 1,758.8 (1,644.7) million and the EBITA profit, adjusted for acquisiton and integration costs, was SEK 76.8 (140.5) million. The effects of the economic downturn has hit harder and faster than expected and cause increased uncertainty about the development on all markets where Knowit operates. This is seen primarily in longer sales cycles for new assignments and downsizing of ongoing projects.
“The trend we saw at the start of the year, with greater hesitance among clients in some sectors, has remained and somewhat accelerated during the second quarter. We are seeing more uncertainty on the market, which has led to greater challenges in finding assignments for consultants and thus has a negative impact on both net sales and operating profit. Several actions have been taken to ensure an improvement in profitability, including cost savings through downsizing the workforce, decreasing the proportion of administrative resoruces, and generally decreasing the cost levels in the Group,” says Per Wallentin, CEO and President.
Weakened demand is most apparent in retail, but in the public sector, unchanged expense budgets have also affected investment possibilities. Knowit is seeing continued high demand in areas where we have high competence and are well-positioned, like AI, defense solutions, cybersecurity, and law.
“The digital transformation remains high up on our clients’ agendas, even in a recession, and we continue our constructive and proactive dialogues with them. The long-term need for high-quality, innovative solutions that meet Nordic companies’ needs and help them grow and succeed in the digital era is unchanged. In the short term, our ability to be flexible and adapt to changing market conditions will be crucial to our success,” says Per Wallentin.
For more detailed information on the results for the second quarter, please see the interim report available on Knowit’s website and appended this press release.
Presentation of the Interim Report
Knowit offers a presentation of the Interim Report today, Thursday July 20. President and CEO Per Wallentin and CFO Marie Björklund comment on the results and answer questions.
The report will be available at https://www.knowit.eu/investor-relations/reports--presentations/
The presentation starts at 10.00 am (CEST) and will be held in English.
Link to the audiocast: https://www.investis-live.com/knowit/649e87239b8a600d0040f8bc/qrtg
Telephone numbers to the audiocast:
Denmark +45 89 87 50 45
Finland +358 75 3252542
Norway +47 815 03 308
Sweden +46 10 884 80 16
United Kingdom +44 20 4587 0498
United States +1 855 9796 654
Other +44 20 3936 2999
No advance notification is necessary. After the presentation, a recording of the webcast will be available at https://www.knowit.eu/investor-relations/reports--presentations/
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 July 20, 2023.