MVISE AG Shows Profitability Amid Sales Decline

mVISE AG released its financial results for FY24. The company experienced a 33% year-on-year sales decrease, reaching €9.3 million. This decline was anticipated due to restructuring and a shift in the business model, which led to a reduction in the workforce. Despite the sales slump, mVISE reported an increase in EBITDA by 2.8% to €1.1 million, translating to a significant improvement in the EBITDA margin to 12.1%.

The company's new strategy, including the cessation of low-margin projects, has started to show positive results. Looking ahead, mVISE management projects an EBITDA of at least €1.3 million for FY25, albeit lower than previous estimates. Sales are expected to continue declining before a potential rebound in FY26.

With a cautious FY25 outlook, mVISE continues its transformation journey, aiming for improved margins and returns. The company's current share price does not fully reflect this potential, thus maintaining a recommendation to buy with a target price of €1.30.