Asseco Business Solutions (ABS) H2 2024 earnings summary

Executive summary

• Operating revenues grew 12.7% year-over-year to PLN 428.8 million, with net profit up 21% to PLN 115.0 million, reflecting strong sales in both domestic and foreign markets.

• EBITDA increased by 13.2% to PLN 164.2 million, and EBIT rose 13.4% to PLN 124.1 million compared to 2023.

• The company continued to expand its cloud-enabled services, digitization solutions, and AI integration across its product portfolio.

• A new executive incentive scheme was launched, funded by a buyback of 600,000 shares.

Financial highlights

• Gross profit margin on sales improved to 42.7% (up 2.0 p.p.), and net profit margin reached 26.8% (up 1.8 p.p.).

• Return on equity (ROE) increased to 29.9% (from 25.1%), and return on assets (ROA) to 22.9% (from 19.3%).

• Net cash from operating activities was PLN 163.3 million, up from PLN 129.4 million in 2023.

• Cash and cash equivalents at year-end were PLN 40.9 million, down from PLN 53.0 million, mainly due to dividend payments and share buyback.

• Dividend of PLN 2.60 per share paid for 2023, totaling PLN 86.9 million.

Outlook and guidance

• Management expects continued growth in demand for ERP and cloud solutions in Poland, with positive IT sector prospects.

• The company plans to finance future investments and potential acquisitions from own resources or new share issues.

• No significant direct impact from the war in Ukraine, but ongoing monitoring of macroeconomic risks.