Etteplan - Before the dawn the darkest hour
Etteplan's Q4 results were as expected, following the preliminary numbers released with January's profit warning. Etteplan targets growth and improved profitability in 2024 following a tough 2023.
- Net sales in Q4 were EUR 95.2m (EUR 91.0m in Q4/22), revenue increased 4.6% y/y, yet increased 6.5% at comparable FX rates.
- EBIT in Q4 amounted to EUR 8.2m (EUR 8.4m in Q4/22), at a margin of 8.6%. EBIT was affected by the weakening of the demand situation, the high number of sick leaves at the end of the year and the larger-than-expected number of holidays taken at Christmas time.
- EPS in Q4 amounted to EUR 0.24 (EUR 0.30 in Q4/22).
- Net sales in Engineering Solutions in Q4 were EUR 54.6m, EBITA in Q4 amounted to EUR 5.9m.
- Net sales in Software and Embedded Solutions in Q4 were EUR 22.6m, EBITA amounted to EUR 2.2m.
- Net sales in Technical Communication Solutions in Q4 were EUR 17.8m, EBITA in Q4 amounted to EUR 1.7m. Etteplan’s measures to improve the segment’s profitability from Q3 clearly paid off as the profitability was already at a moderate level for the segment.
- Guidance for 2024: Revenue in 2024 is estimated to be EUR 375-415 (2023: 360.0) million, and operating profit (EBIT) in 2024 is estimated to be EUR 28-34 (2023: EUR 25.5 million).
- Our current estimates for 2024: revenue of EUR 380.5m and EBIT of EUR 30.2m, within the guidance range, yet slightly lower than the guidance middle point.
- Financial targets for 2023-2024 were changed for international growth and profitability, now Etteplan aims to have at least 55% coming from outside Finland in 2024 (prev. 50%) and EBITA over 10% of revenue (prev. 10% EBITA margin)