- Wednesday, October 16, 2024
German information-technology company Adesso has announced a decline in after-tax profit for the third quarter. This comes as personnel costs outpaced sales growth and the company faced budget overruns in two projects.
Financial Overview
Adesso's after-tax profit for the third quarter stood at €6.0 million, down from €13.2 million in the same period last year. Although sales increased from €241.4 million to €287.4 million, license sales fell short of expectations.
Earnings before interest, taxes, depreciation, and amortization (EBITDA) dropped by 15% to €28.4 million. This decrease was primarily due to lower contributions from license sales and cost overruns in two larger fixed-price projects. Adesso's EBITDA margin contracted to 9.9% from 13.8% compared to the previous year, but it showed improvement compared to the two preceding quarters.
Positive Outlook
Chief Financial Officer Joerg Schroeder expressed optimism about the future and highlighted the company's efforts to enhance capacity utilization. Adesso expects a double-digit percentage increase in sales in 2024 and aims to return to its usual EBITDA target margin range, driven by the high demand for digitalization services.
All Rights Reserved © 2024
Post a comment