adesso (ADN1) H2 2023 earnings summary

Executive summary

• FY 2023 sales rose 26% to €1,135.9m, with 24 percentage points of organic growth and 2 points from acquisitions.

• Earnings weakened: EBITDA fell 14% to €80.0m and EPS declined 89% to €0.49, amid low utilisation, project impairments and higher personnel costs.

Financial highlights

• Gross profit increased 27% to €973.3m; personnel costs rose 32% to €773.2m and other operating expenses rose 25% to €135.3m.

• EBT fell 71% to €12.2m; consolidated earnings dropped 88% to €3.4m, with income taxes of €8.8m and a 72% tax quota.

• Operating cash flow doubled to €76.9m from €36.1m, and Free Cash Flow II was positive at €14.2m.

Outlook and guidance

• FY 2024 sales guidance is >€1,250m, with expected double-digit growth; EBITDA guidance is €110m–€130m.

• Margin is expected to improve, particularly in HY2; outlook cites strong IT Services demand and one additional working day.

• Priorities include ramping offshore delivery in India, launching Managed Services, improving core IT Services utilisation, raising daily rates and reinforcing cash-flow focus.