Innofactor - Good performance despite headwinds
Innofactor’s Q3 results were good and quite as expected despite market headwinds. Net sales were organically up 8% y/y to EUR 18.0m (Evli EUR 18.1m). EBITDA was slightly above expectations at EUR 2.0m (Evli EUR 1.8m). Guidance reiterated, Innofactor’s net sales and EBITDA in 2023 are expected to increase compared with 2022.
- Net sales in Q3 amounted to EUR 18.0m (EUR 16.7m in Q3/22), in line with our estimates (Evli EUR 18.1m). Net sales in Q3 grew 8%, of which all was organic growth. Net sales increased in Finland and Norway.
- EBITDA in Q3 was EUR 2.0m (EUR 1.8m in Q3/22, slightly above our estimates (Evli EUR 1.8m), at a margin of 10.9%.
- Operating profit in Q3 amounted to EUR 1.2m (EUR 1.0m in Q3/22, slightly above our estimates (Evli EUR 1.2m), at a margin of 6.7%.
- Price competition in the markets remained intense in the third quarter, although the weighted average prices of new contracts increased slightly from the preceding quarter. New sales in Q3 were still below target and led to a decrease in the order backlog but Innofactor expects to be able to increase the volume of new sales in Q4.
- Order backlog at EUR 71.4m, down 7.6% y/y. Due to the challenging market situation Innofactor did not win any new significant tenders during the quarter.
- Guidance for 2023 (reiterated): Innofactor’s net sales is expected to increase from 2022 (EUR 77.1m) and EBITDA is expected to increase from 2022 (EUR 7.8m).