Preliminary figures for financial year 2023/24

Preliminary (unaudited) results and guidance:

• Sales increase to EUR 511,4 million (up 5% year on year)
• Share of recurring revenues unchanged at 55%
• Licence revenues (incl. commission) well above the prior-year period
• Strong growth with SAP conversions (migrations)
• EBIT before M&A effects (non-IFRS): EUR 34.0 million (2022/23: EUR 17.7 million); EBIT: EUR 28.4 million (2022/23: EUR 14.9 million)
• EBIT margin before M&A effects (non-IFRS) in Q4 2023/24: 10.1% (Q4 2022/23: 5.1%)
• Further growth with improved profitability expected in financial year 2024/25 and 2025/26

Filderstadt, 22 November 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 30 September 2024 today. Driven by strong demand for ERP migration solutions, sales in financial year 2023/24 amounted to EUR 511.4 million, an increase of 5% compared to the previous year.

All business areas contributed to the positive development in 2023/24. In particular, the trend towards the cloud is visible in Cloud Services and Support revenues (up 11% to EUR 142.2 million), while Software Support increased only slightly to EUR 121.6 million (up 1%). At EUR 33.5 million (up 35%), licence revenues (including commissions) in financial year 2023/24 were significantly higher than in the previous year, mainly reflecting increasing demand from new and existing customers for cloud-based SAP S/4HANA solutions (RISE and GROW) and migrations. Recurring revenues totalled EUR 283.2 million (up 6%). As expected, demand for consulting services for existing ERP systems was lower due to the upcoming technology transition.

»Despite a temporary reluctance on the part of customers to sign contracts and delays in project starts, there has been a significant catch-up effect since the summer with a much improved order situation, which ultimately led to a very pleasing financial year. Numerous new orders from existing and new customers to migrate to SAP S/4HANA demonstrate the urgency of digitalising business processes. As Europe’s number one in SAP conversions, All for One is benefiting from this demand. The foreseeable end of support for SAP's on-premise solutions is leading to a significant increase in demand for migration services and is also the basis for our offering of long-term support and consulting for cloud solutions. This is a favourable starting point for the current financial year and the future development of All for One«, says Michael Zitz, CEO of All for One.

Very strong Q4 2023/24 in terms of sales and earnings

The expectations expressed in the third quarter on the basis of a well-filled pipeline were fully confirmed, with sales increasing by 7% to EUR 132.6 million in the fourth quarter. EBIT before M&A effects more than doubled to EUR 13.4 million compared to the same quarter of the previous year. Profitability improved significantly with an EBIT margin before M&A effects of 10.1% (Q4 2022/23: 5.1%).

Significant improvement in profitability in financial year 2023/24

The Group's preliminary EBIT before M&A effects (non-IFRS) increased significantly by 92% to EUR 34.0 million (2022/23: EUR 17.7 million), with a margin of 6.7% in 2023/24 (2022/23: 3.6%). EBIT before M&A effects (non-IFRS) adjusted for the one-off restructuring expenses increased by 30% in the 2023/24 financial year compared to the prior year. EBIT amounted to EUR 28.4 million, an increase of 91%. The result for the period improved by 64% to EUR 18.3 million and earnings per share by 66% to EUR 3.70.

The equity ratio as of 30 September 2024 increased to 32% (30 Sep 2023: 29%). At 2,810, the number of employees as of 30 September 2024 was slightly below the prior-year level (30 Sep 2023: 2,858).

»The high demand for our services demonstrates our outstanding position in all areas relating to SAP solutions. Our positioning makes us the perfect partner for globally active SMEs«, said Stefan Land, CFO of All for One. »We have achieved our guidance for both sales and EBIT before M&A effects in a difficult environment and have a solid financial position.«

All for One's pole position is also reflected in the numerous awards that the company received in the past financial year. These include SAP Quality Awards in three out of four categories.

Strong growth with migrations in the CORE segment

With a good order book and stable capacity utilisation, sales in the CORE segment for financial year 2023/24 increased by 6% to EUR 452.4 million (2022/23: EUR 428.6 million) based on preliminary figures. Segment EBIT before M&A effects (non-IFRS) increased by EUR 17.4 million to EUR 27.0 million. The strong order book in the CORE segment and the resulting customer base also form the basis for our future growth.

In the lines of business areas of employee experience and business analytics (LOB segment), demand was stable, but restrained overall. The fact that the customer experience segment is well below plan continues to reflect SAP's current pricing and version policy. Price increases, new product developments and fundamental architecture revisions have led companies to adopt a wait-and-see approach. Sales decreased by 4% to EUR 76.1 million (2022/23: EUR 79.4 million). However, at EUR 7.1 million (2022/23: EUR 8.2 million), EBIT before M&A effects (non-IFRS) was still able to achieve a margin of 9.3%, albeit below potential.

Successful transformation and further development of customer-centric positioning

All for One continued to drive forward its own transformation in the past financial year and is the number 1 for migrations to SAP S/4HANA in the European midmarket. SAP's strategic decision to make innovations available exclusively via SAP's cloud applications in future is accelerating the wave of migration to the cloud. All for One continues to target the upper mid-market with two transformation offerings for moving to the cloud, »RISE with SAP« and »GROW with SAP«.

Michael Zitz, CEO of All for One: »The past financial year has taken All for One forward both operationally and strategically. With our 2,810 employees, we are ideally positioned to benefit from the transition of the ERP business to the cloud and to support our customers in optimising business processes based on new technologies such as artificial intelligence. A continuously implemented and evolving digital strategy is becoming a decisive competitive factor for companies, and we stand by our customers as a reliable and competent partner.«

Forecast

During the past financial year, All for One continued to evolve from an ERP conversion specialist to a consulting and service provider across the ERP lifecycle. As demand for ERP implementations and cloud conversions grows, All for One is increasingly able to benefit from contracts related to cloud ERP systems and increase recurring revenues.

As things stand at present, and presuming a continued robust and steady stream of incoming orders and a stable and broad customer base, the management board expects sales to be between EUR 525 million and EUR 540 million in financial year 2024/25 (2023/24: EUR 511.4 million). EBIT before M&A effects (non-IFRS) is predicted to be in a range between EUR 36.5 million and EUR 40.5 million (2023/24: EUR 34.0 million).

All for One Group expects robust mid-single digit organic sales growth over the next few years, complemented by inorganic growth in promising portfolio areas and markets. The EBIT margin before M&A effects (non-IFRS) should be above the 8% threshold in the 2025/26 financial year

Given the uncertain geopolitical situation and economic challenges in Central Europe, All for One continues to expect fluctuations and delays in contract signings and project starts, albeit to a lesser extent. Nevertheless, the company believes it is well positioned to meet market demands. However, geopolitical changes could reduce demand, delay projects and lead to increased bad debts and insolvencies within the customer base, which could jeopardise the forecast.

All for One Group SE will be publishing its finalised consolidated financial statements for financial year 2023/24 and its sustainability report as scheduled on 16 December 2024 to coincide with the financial statements press conference.