Adesso Reports 26% Revenue Growth to EUR 1.14 Billion Amid Operating Challenges

In its latest financial report, adesso SE has disclosed a significant revenue growth of 26% year-on-year, reaching EUR 1.14 billion, a milestone that saw the company breaking the billion-euro barrier for the first time. Despite this success, adesso faced challenges including a rapid increase in personnel size, the additional costs of fixed-price projects, and a decline in license income, leading to a reduced EBITDA of EUR 80.0 million compared to EUR 92.9 million in the previous year.

adesso's expansion saw its employee count grow by 18% to 9,512 by year's end, with personnel costs increasing by 32% due to inflation, topping EUR 773.2 million. However, the company anticipates a more favorable financial landscape in 2024, projecting sales to exceed EUR 1.25 billion and EBITDA to range between EUR 110 million and EUR 130 million, reflecting an improvement in profitability. Consequently, the Executive Board proposes to up the dividend to EUR 0.70 per share for 2023 from the previous EUR 0.65.

The company has also succeeded in strengthening its market position through growth in key sectors such as Retail and Utilities, which experienced sales increases of 61% and 74%, respectively. adesso’s focus on internationalization, marked by acquisitions in Italy and India and the establishment of a site in the UK, along with a significant rise in international customer sales, underscores its strategic growth ambitions.

Despite setbacks, including a higher effective tax rate of 72% attributed to non-tax-deductible expenses and a drop in consolidated earnings to EUR 3.4 million, adesso remains optimistic about the future. The company is set to continue its pursuit of growth within the IT industry, driven by robust demand for its digital solutions across all core sectors.