Avensia (AVEN) Q1 2025 earnings summary

Executive summary

• Achieved record quarterly results despite a cautious market, with 15% revenue growth and improved operating margin to 12.9% compared to the same quarter last year.

• Commerce segment drove growth with 18% revenue increase and 18.9% operating margin; Information Management segment had flat revenue and negative margin.

• Cash flow and liquidity strengthened, with cash flow from operations at 15.1 MSEK and available liquidity at 82.7 MSEK.

Financial highlights

• Net sales rose to 118.3 MSEK (102.8), up 15% year-over-year, driven by higher billing rates and utilization.

• Operating income increased to 15.3 MSEK (6.1), with operating margin at 12.9% (6.0%).

• Net income was 11.4 MSEK (4.1), and EPS was 0.31 SEK (0.11).

• Cash flow for the quarter was 11.4 MSEK (-3.9), with cash flow from operations at 15.1 MSEK (5.7).

• Personnel costs were 75.6 MSEK (69.5), representing 64% (68%) of net sales.

Outlook and guidance

• Structural demand in core markets expected to increase over time, but risk of global recession remains.

• Financial targets: organic growth of 10% per year, short-term operating margin of 10%, and long-term margin of 15%.