Innofactor - Profitability back on track
Innofactor’s Q1 results were slightly better than expected. Although net sales of EUR 17.0m were below expectations (Evli EUR 17.8m), with sales having decreased in Finland and Sweden due to increased sick leaves, profitability was at good levels after some challenges during H2/21, with EBITDA amounting to EUR 2.0m (Evli EUR 1.8m).
- Net sales in Q1 amounted to EUR 17.0m (EUR 17.8m in Q1/21), slightly below our estimates (Evli EUR 17.7m). Net sales in Q1 declined 4.7% y/y and 1.5% in comparable terms. Net sales increased in Norway and Denmark but decreased in Finland and Sweden, affected by increased sick leaves due to the pandemic.
- EBITDA in Q1 was EUR 2.0m (EUR 2.1m in Q1/21, excl. Prime business divestment), slightly above our estimates (Evli EUR 1.8m), at a margin of 12.0%. EBITDA was positive in all operating countries except in Sweden.
- Operating profit in Q1 amounted to EUR 1.3m (EUR 1.3m in Q1/21, excl. Prime business divestment), above our estimates (Evli EUR 1.0m), at a margin of 7.8%.
- Order backlog at EUR 71.3m, up 26.5% y/y. Innofactor received a handful of significant orders in Q1, for instance from the Finnish Ministry of Social Affairs and Health (approx. EUR 1.2m), the Housing Finance and Development Centre of Finland (approx. EUR 0.7m), Finnvera (approx. EUR 1.0m) and a Norwegian non-profit organization (EUR 1.2m).
- Guidance for 2022 (reiterated): Innofactor’s net sales is expected to increase from 2021 (EUR 66.4m) and EBITDA is expected to increase from EUR 7.5m, which would have been EBITDA without the proceeds of EUR 2.6m from the sale of the Prime business.