Strong growing financial results in the First-Half as of October 31, 2023, significantly outperforming the reference market:
- Consolidated Revenues and Other Income: Eu 1,501.6 million (+14.5% Y/Y)
- Consolidated Ebitda: Eu 113.3 million (+21.3% Y/Y), Ebitda margin 7.5% vs 7.1% Y/Y
- Group Adjusted Net profit1: Eu 50.1 million (+9.1% Y/Y)
- Consolidated NFP2 (net liquidity): Eu 153.4 million vs Eu 189.5 million as of October 31, 2022
- Group Human Resources: 5,367 employees as of October 31, 2023 (+21.0% Y/Y)
- Positive outlook confirmed for the FY 2024: Revenues target in the range Eu 3.2 billion - Eu 3.3 billion and Ebitda target between Eu 240 million and Eu 250 million
Empoli (FI), December 19, 2023
The Board of Directors of Sesa S.p.A., reference player in technological innovation and digital services for the business segment, today approved the consolidated First-Half Financial Report as of October 31, 2023 referring to the First-Half of the Fiscal Year ending April 30, 2024, in accordance with EU-IFRS accounting standards.
In the period under review Sesa continues its development path, after 12 consecutive Years of growth from FY 2012 as of today (CAGR FY 2012-2023: Revenues 12.0%, Ebitda 16.2%, EAT Adjusted 19.8%), achieving Half-Year consolidated Revenues and Other Income for Eu 1,501.6 million (+14.5% Y/Y) and a consolidated Operating Profitability (Ebitda) equal to Eu 113.3 million, up 21.3% Y/Y.
Sesa benefits from the continuous investment strategy focusing on business segments enabling technological innovation (cybersecurity, vertical business applications, cloud, digital platforms, data science), achieving growth pace significantly higher than the Italian Information Technology market, expected to increase by 2.8% in 2023 (source Sirmi, November 2023).
Revenues and profitability growth were once again mainly organic for around 65%, with a strong increase in skills and human capital and a total of 5,367 employees as of October 31, 2023 (+21.0% vs 4,434 resources as of October 31, 2022); the contribution from external growth (M&A) was equal to 35% of the total 6-months period under review at revenues and operating profit level.
Consolidated Revenues and Other Income grew by 14.5% to Eu 1,501.6 million, with a significant contribution by all Group sectors:
- VAD Sector achieving Revenues and Other Income equal to Eu 1,135.4 million (+11.9% Y/Y), driven among other by the development of Collaboration, Enterprise Software and Security Solutions BUs;
- SSI Sector achieving Revenues and Other Income equal to Eu 368.2 million (+21.6% Y/Y), thanks to the development of the main operating BUs including Digital Security, Cloud, ERP & Vertical Solutions and Data Science;
-Business Services Sector achieving Revenues and Other Income equal to Eu 55.0 million (+38.6% Y/Y), driven by the development of applications and digital platforms dedicated to the Financial Services industry and the recent offering expansion to master servicing with the consolidation of 130 Servicing in the 6-months period under review.
Thanks to the Revenues growth in high added-value areas, consolidated Ebitda increased by +21.3% Y/Y, achieving Eu 113.3 million, with a 7.5% Ebitda margin further increase compared to 7.1% as of October 31, 2022.
All Group reference Sectors contributed to the consolidated Ebitda result:
- VAD sector achieves an Ebitda of Eu 57.7 million (+13.9% Y/Y) and an Ebitda margin equal to 5.1% as of October 31, 2023 vs 5.0% as of October 31, 2022 and 4.9% in FY 2023;
- SSI sector achieves an Ebitda of Eu 45.5 million (+22.1% Y/Y) and an Ebitda margin equal to 12.3% as of October 31, 2023 vs 12.3% as of October 31, 2022 and 12.1% in FY 2023;
- Business Services sector achieves an Ebitda of Eu 7.8 million (+121.8% Y/Y) and an Ebitda margin equal to 14.2% as of October 31, 2023 vs 8.8% as of October 31, 2022 and 13.0% in FY 2023.
Group Operating Income (Ebit) Adjusted3 totalled Eu 90.7 million (Ebit margin adjusted 6.0% vs 5.5% Y/Y), with an increase of 24.7% Y/Y, after amortizations of tangible and intangible assets for Eu 19.1 million (+14.3% Y/Y) and provisions for Eu 3.5 million (-12.3% Y/Y).
Consolidated Operating Income (Ebit) equal to Eu 75.0 million, up by 19.8% Y/Y, after amortizations of intangible assets (client lists and know-how) deriving from PPA for Eu 12.9 million (+67.5% Y/Y, following the M&A investments acceleration) and after other non-monetary costs related to Stock Grant Plans for Eu 2.7 million (vs Eu 2.3 million Y/Y).
Net profit attributable to the Group as of October 31, 2023 equal to Eu 39.0 million (+0.5% Y/Y), after net financial charges for Eu 14.1 million compared to Eu 3.9 million as of October 31, 2022 due to the increasing trend of market interest rates, taxes for Eu 19.3 million and net profit attributable to non-controlling interests for Eu 2.6 million.
Group Adjusted Net profit after minority interests (Adjusted EAT attributable to the Group) as of October 31, 2023 is equal to Eu 50.1 million (3.3% of revenues), up by 9.1% Y/Y compared to Eu 45.9 million as of October 31, 2022 (3.5% of revenues).
Consolidated Net Financial Position is active (net liquidity) for Eu 153.4 million compared to Eu 189.5 million as of October 31, 2022, as a result of Net Working Capital growth from Eu 20.3 million as of October 31, 2022 to Eu 36.1 million as of October 31, 2023, due to Half-Year revenues increase, and M&A investments acceleration with total non-current assets increasing from Eu 451.2 million as of October 31, 2022 to Eu 634.3 million at the end of the half-year under review.
Consolidated Net Financial Position Reported as of October 31, 2023 (net of IFRS Liabilities for Eu 210.8 million mainly consisting of deferred payments of company acquisitions and liabilities to minorities for Put Options) is passive (net debt) for Eu 57.4 million compared to active Net Financial Position for Eu 10.5 million as of October 31, 2022, declining due to, among other things, the higher IFRS liabilities deriving from the acceleration of M&A investments outlined above.
The Group confirms its cash flow generation and Long Term investment capability with a Last Twelve Months (LTM) Eu 130 million operating cash flow, net of capex and M&As investment for approximately Eu 175 million and dividend distribution and treasury shares buy-back for about Eu 21 million.
In the period under review, the consolidated Shareholders' Equity is further strengthened, achieving Eu 442.8 million as of October 31, 2023, increasing from Eu 352.1 million as of October 31, 2022.
In the light of the positive results achieved in the First-Half of the FY 2024, the expected contribution of the 13 bolt-on M&As closed since January 2023 in strategic development areas for the Group as well as the growing demand for digitalization in the reference market, the Group confirms the consolidated Revenues and Ebitda guidance for the FY 2024 with a Revenues target in the range Eu 3.2 billion - Eu 3.3 billion and Ebitda target between Eu 240 million and Eu 250 million, for an Ebitda growth in the range +15% and +20% Y/Y.
The Group will continue to invest and develop digital skills, human resources and innovative solutions, aiming at improving the long-term double digit growth track record also in the Years following the current one, generating sustainable value for all stakeholders and improving its sustainability profile.
The Chairman Paolo Castellacci and the Chief Executive Officer Alessandro Fabbroni stated about the Half Year results as of October 31, 2023 as follows:
“We confirm our great ability to intercept technological innovation waves and lead the digital transformation in the business segment by combining technology, consulting and applications. We continue to invest in human capital and digital skills development, confirming our role of reference player in our industry, leading the digital evolution of Enterprises and Organizations”, stated Paolo Castellacci, Chairman and founder of Sesa.
“We close a Half-Year of further and strong growth in revenues and skills, achievning a total of 5,400 resources up by about 50% compared to two Years ago, facing a digitalization demand of Enterprises and Organizations driven by the consistent investments required in technology, applications and integration services. In the light of the positive trend of the First-Half, the investments in skills and innovative solutions and our great ability of industrial aggregation, with about 70 bolt-on M&As closed from 2015 as of today, we confirm the positive outlook for the current Fiscal Year, by expanding our continuous and outstanding long-term growth track record and supporting our stakeholders in the current phase of digital evolution”, stated Alessandro Fabbroni, CEO of Sesa.