Solteq - Sales development a concern
Solteq’s Q4 performance mirrored its full-year trends, with declining sales but improved profitability. Retail & Commerce met expectations, while Utilities disappointed. The company estimates that comparable revenue will decrease slightly in 2025, while operating result will improve significantly.
- Comparable net sales in Q4 were EUR 12.5m (Q4’23: EUR 14.2m) vs. Evli EUR 13.4m, a decline of 12.4% y/y in comparable terms.
- Comparable operating profit in Q4 was EUR 0.3m (Q4’23: EUR -1.0m) vs. Evli EUR 0.8m. Total operating profit came in at EUR 1.8m (Q4’23: EUR -9.1m) including a EUR 1.3m gain from the sale of the Solteq Care business.
- Retail & Commerce: Comparable revenue in Q4 amounted to EUR 9.7m (Q4’23: EUR 10.5m) in line with our estimates. Revenue declined by 7.1% in comparable terms due to continued soft customer demand and delays in multiple critical customer acquisition initiatives. The adj. EBIT was EUR 1.0m (Q4’23: EUR -0.2m) vs. Evli EUR 0.8m. Profitability continued to improve, supported by efficiency measures implemented in Q2 and Q3.
- Utilities: Revenue in Q4 amounted to EUR 2.8m (Q4’23: EUR 3.8) vs. Evli EUR 3.7m. The 27% y/y decrease in revenue was driven by delays in software business deliveries and weak demand in the consulting business. The adj. EBIT was EUR -0.7m (Q4’23: -0.8m) vs. Evli EUR 0.0m.
- Guidance for 2025: Comparable revenue is expected to decrease slightly (2024: EUR 48.8m), while comparable operating result is set to improve significantly (2024: EUR 0.7m)
- Our current estimate for 2025: net sales of EUR 52.3m and operating result of EUR 3.9m.
- During the review period, Solteq's Retail & Commerce segment sold its Danish healthcare software business for EUR 4.0 million, reducing its debt burden and sharpening its focus on core operations