Half-Year Results 2023/24

Unaudited results:

• Sales increase organically by 5% to EUR 256.6 million (Oct 2023 – Mar 2024: EUR 243.4 million); recurring revenues increase by 8%; share of recurring revenues is 55% (Oct 2022 – Mar 2023: 54%)
• Licence revenues (incl. RISE commission) well above the prior-year period
• RISE contracts signed in Q1 already lead to significantly higher order inflow in Consulting and CONVERSION/4 in Q2; project wave is visible
• EBIT before M&A effects (non-IFRS) grows by 34% to EUR 17.7 million; EBIT margin before M&A effects (non-IFRS) increases to 6.9% (Oct 2022 – Mar 2023: 5.4%)
• Number 1 in SAP cloud business
• Annual general meeting approves dividend of EUR 1.45 per share
• 2023/24 outlook confirmed

Filderstadt, 13 May 2024 – All for One Group SE, a leading international IT, consulting and service provider focusing on SAP solutions and services, published its preliminary unaudited results for the period from 1 October 2023 to 31 March 2024 today.

As a result, All for One generated sales of EUR 256.6 million in the 1st half of 2023/24, up 5% compared to the prior-year level of EUR 243.4 million. After a very strong 1st quarter with one-time commission income from cloud-based SAP S/4HANA solutions (RISE), the 2nd quarter was characterised by a certain restraint in some areas, which All for One had expected after a strong year-end business.

Sales in the 2nd quarter of 2023/24 were on a par with the prior year at EUR 122.8 million, with recurring revenues increasing by 5%. EBIT before M&A effects (non-IFRS) was EUR 6.7 million with a margin of 5.4%.

Nevertheless, the 2nd quarter was characterised by a strong order inflow. Numerous new customers were acquired and contracts were signed for conversions that will be implemented in the coming quarters. Recurring revenues, which are easier to budget, increased by 8% in the 1st half of the year and already account for 55% of total sales.

»We are very pleased with the strong order inflow in the 1st quarter – whether SAP RISE new customers in our core industries or conversions – and confirms All for One's pole position as a leading industry and cloud specialist«, comments All for One Co-CEO Michael Zitz on the quarterly figures. »Demand for our transformation programme CONVERSION/4 and for consulting services is increasing significantly«. In the new customer segment, for example, STADLER, a reputable premium plant manufacturer and waste management specialist has been acquired and will invest in consulting services and cloud solutions from All for One in the coming years.

»The high demand for consulting services from the upper midmarket will enable us to integrate our Regional Delivery Centers more closely in the future. In this way, we want to further improve our margin. This development is very pleasing«, adds Michael Zitz. Recurring revenues amount to EUR 140.3 million (plus 8%). In particular, the trend towards the cloud is visible in Cloud Services and Support revenues (up 14% to EUR 70.1 million), while Software Support increased only slightly to EUR 60.9 million (up 3%). Licence revenues (incl. RISE commission) in the 1st half of 2023/24 exceeded our expectations at EUR 18.4 million (up 44%) reflecting in particular the increasing demand from new and existing customers for cloud-based SAP S/4HANA solutions (RISE).

»All for One is the number 1 in SAP cloud business – both quantitatively and qualitatively. SAP attests to this with numerous Partner Excellence Awards, for example in the categories Cloud Delivery or Customer Value«, says Co-CEO Michael Zitz. »We are delighted that more and more customers are moving to the cloud with All for One and it is a sure sign of our growth course«.

With a good volume of orders on hand, sales in the CORE segment increased by 7% to EUR 227.1 million (Oct 2022 – Mar 2023: EUR 212.9 million) and EBIT before M&A effects (non-IFRS) also improved by 69% to EUR 14.6 million. Due to the current stronger focus of customers on the urgently needed conversion in the core system ERP, capacity utilisation in the lines of business solutions (LOB segment) was below our expectations. Sales decreased by 6% to EUR 37.6 million (Oct 2022 – Mar 2023: EUR 40.2 million). However, EBIT before M&A effects (non-IFRS) of EUR 3.1 million (Oct 2022 – Mar 2023: EUR 4.6 million) continued to achieve a robust margin of 8.2%.

EBIT before M&A effects (non-IFRS) for the Group rose significantly by 34% to EUR 17.7 million; with a margin of 6.9% in H1 2023/24 (H1 2022/23: 5.4%). EBIT amounted to EUR 14.8 million; an increase of 11%. The result for the period grew by 3% to EUR 9.9 million and earnings per share by 4% to EUR 1.98.

The equity ratio as of 31 March 2024 increased to 32% (30 Sep 2023: 29%). At 2,786 the number of employees as of 31 March 2024 was slightly below the prior-year level (31 Mar 2023: 2,820).

In view of the Group's internationalisation strategy and growth targets, the Group will continue to invest in employee recruitment, development and retention – especially in the Regional Delivery Centers.

Right on track: Guidance 2023/24 confirmed

The management board is holding firm to its guidance for financial year 2023/24. According to CFO Stefan Land: »We’ve done our homework, we are in an excellent position, and we have extensively adjusted our margins and efficiency – by driving the focused expansion of our Regional Delivery Centers in Poland, Egypt and Turkey, for example. In view of the promising order inflow and the upcoming projects, we are right on track«.

Given its outstanding position in the SAP environment and the optimisations and improvements that were put in place last year, the management board continues to expect the Group to reap above-average benefits from a growing market for IT consulting and services. Which should translate into further sales growth and greater profitability.

As things stand at present, and presuming a continued robust and steady stream of incoming orders and a stable and broad customer base, the excellent position of the Group in the SAP environment, and based on the growth rates predicted for the IT consulting and services market, the management board of All for One Group expects sales to be between EUR 505 million and EUR 525 million in financial year 2023/24 (2022/23: EUR 488 million). EBIT before M&A effects (non-IFRS) is predicted to be in a range between EUR 32 million and EUR 36 million (2022/23: EUR 17.7 million).

The board also reaffirmed its mid-term outlook of robust organic growth in the mid-single-digit percentage range and a margin of between 7% and 8% for EBIT before M&A effects (non-IFRS) up to financial year 2024/25.

All for One Group SE will be publishing its full half-year financial report 2023/24 as scheduled on 16 May 2024.