Administer - Weak market weighted on results
Administer's Q3 results fell short of expectations as net sales declined to EUR 17.0m and EBITDA weakened to EUR 0.7m, driven by challenging market conditions and lower volumes across all business areas.
- Net sales in Q3 were EUR 17.0m (EUR 17.6m in Q3’24) below our estimate of EUR 17.7m. The challenging market environment continued to impact net sales during the quarter. Development across all business areas was below our expectations.
- EBITDA in Q3 was EUR 0.7m (Q3’24: EUR 1.0m) vs. Evli EUR 1.1m. This translates to a margin of 4.0%. The y/y decline was driven by lower volumes outpacing cost structure adjustments.
- EBITA in Q3 was EUR 0.2m (Q3’24: EUR 0.5m) vs. Evli EUR 0.7m.
- Operating result in Q3 was EUR -0.8m (Q3’24: EUR -0.5m) vs. Evli EUR -0.4m. The operating result continued to be negatively impacted by goodwill amortization of EUR 1.0m
- Net sales for HR services provider Silta in Q3 declined 5.3% to EUR 5.8m.
- Net sales for HR and staffing provider Econia in Q3 declined by 9.9% to EUR 4.6m.
- Net sales for Administer’s accounting operations amounted to EUR 4.2m, down 1.3% y/y.
- Net sales for software services provider EmCe amounted to EUR 1.6m, down 7.6% y/y.
- Efficiency measures were continued to adjust personnel resources across the group and reduce fixed costs, which is expected to have a positive impact from Q4 onwards.
- During the review period, work continued on the two acquisitions of Sarastia’s public sector customer business. The transaction remains subject to competition authority approval and is expected to support both growth and profitability once completed.
- Guidance for 2025 (reiterated): Administer estimates that its net sales will be EUR 72-78 million and that its EBITDA margin will be 7-10% in 2025.