SNP continues on its growth path with order entry up by more than 30% in the second quarter – EBIT also increases significantly

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SNP continues on its growth path with order entry up by more than 30% in the second quarter – EBIT also increases significantly

• Order entry of € 51.0 million in Q2 2023 is up 32% year over year, driven by new S/4HANA projects
• Group revenue climbs 15% in Q2 2023 to € 48.5 million € (Q2 2022: € 42.3 million); disproportional increase of 25% in software revenue
• Strong improvement in earnings: EBIT rises to € 3.5 million in the first half-year (H1 2022: € 1.8 million) despite negative one-off effects
• Outlook substantiated: SNP expects order entry volume of € 210 million to € 230 million, revenue of € 190 million to € 200 million and EBIT of between € 5 million and € 10 million in fiscal year 2023

Heidelberg, August 4, 2023 – SNP Schneider-Neureither & Partner SE published its half-year financial report for 2023 today. The company successfully continued on its growth path in the second quarter of 2023, with marked increases in its key financial indicators: the order entry volume increased significantly by 32% to € 51.0 million and revenue was up 15% year over year to € 48.5 million. Despite negative currency effects and one-off extraordinary charges, EBIT improved in the second quarter to € 1.0 million (Q2 2022: € 0.7 million).

Jens Amail, CEO of SNP, commented: “We posted strong growth rates in order entry, revenue and earnings also in the second quarter of the current fiscal year. The strategic measures we have implemented are showing first results. We are growing at a considerably faster rate internationally than in our domestic market in Central Europe. Furthermore, the high order entry volume generated via our partners and the sharp rise in software revenue are clear signals that we are on a good path. I would like to thank our customers and partners for the trust they have placed in us, and I would also like to express my gratitude to the entire SNP team for the excellent cooperation over the last few months. We are seeing positive momentum in the market and are excited about what’s ahead.”

High growth rates in the first half-year as a whole

The order entry volume was also up in the first half of 2023, growing by 32% to € 109.4 million, while revenue increased year over year by 15% to € 95.6 million. Service revenue of € 65.4 million accounted for roughly € 68% of Group revenue in the first half of 2023 (H1 2022: € 59.5 million or 71%). Software revenue recorded a disproportional increase of 27% and, at € 30.2 million, contributed approx. 32% to Group revenue (H1 2022: € 23.8 million or approx. 29%).

Despite negative currency effects and one-off extraordinary charges, EBIT increased to € 3.5 million and was therefore nearly twice as high as in the first half of the previous year (H1 2022: € 1.8 million). The EBIT margin also rose accordingly to 3.6% after reaching 2.2% in the previous year.

Progress made on implementing the software and partner strategy

The partner ecosystem was extended further in the partner business. Revenue with partners increased by 18% to € 29.9 million in the first six months of 2023, while the order entry volume climbed by as much as 46% to € 40.7 million. We now have contractual partnerships in place with 16 of the 20 largest IT consulting firms. Within the scope of reinforcement of the collaboration, these firms used the CrystalBridge software platform for their projects. Solutions such as SNP Glue have also been offered for some time now. These solutions prepare SAP data for cloud platforms and provide SNP autonomy with regard to data sources. The offer of the Data Streaming for SAP app strengthened the technology partnership with US company Snowflake Inc. Furthermore, the close partnership with SAP is currently being developed further to make it easier for customers to make the switch to S/4HANA. At € 55.1 million, SAP S/4HANA projects meanwhile account for around 50% of the SNP Group's total order entry.

Equity ratio increases by 3.0 percentage points to 43.5%

SNP is also very well positioned in terms of capital. Equity increased by € 2.9 million compared with the end of the previous year to € 110.1 million. The equity ratio reached a value of 43.5% on lower total assets (December 31, 2022: 40.5%).

Outlook substantiated

As announced with the presentation of the Annual Report 2022, management is providing a quantitative update of the forecast for the 2023 fiscal year. On the basis of a strong first half of 2023, the continuation of the positive market environment and the strong competitive position of the SNP Group allow management to be optimistic about the full year, leading to higher growth expectations than assumed at the beginning of the year.

Assuming continued strong development in the SAP S/4HANA environment and a continuation of the international expansion, management expects order entry for the SNP Group to range between € 210 million and € 230 million in the full year 2023 (2022: € 193.6 million). Revenue will be in a range between € 190 million and € 200 million (2022: € 173.4 million). The operating result (EBIT) is expected to be between € 5 million and € 10 million, taking into account negative currency effects, transformation costs and non-recurring extraordinary charges in connection with the public takeover offer. By contrast, the previous year’s EBIT of € 6.8 million was strongly influenced by positive special items, including positive currency effects and deconsolidation income from the sale of the Polish subsidiary.

With a view to the 2024 fiscal year, assuming a continuation of the strong sector development, revenue growth of around 10% to € 210 million to € 220 million is targeted, with simultaneous improvement in the EBIT margin of one to two percentage points. The book-to-bill ratio (order entry over sales revenue) is expected to be greater than one.

Further details can be found in the half-year financial report for 2023: https://investor-relations.snpgroup.com/en/publications/

About SNP

SNP (ticker: SHF.DE) helps companies worldwide to tap into the full potential offered by their data and to embark on their very own journey to a digital future.

With its CrystalBridge® data excellence platform and its BLUEFIELD™ approach, SNP has established a comprehensive industry standard, enabling faster and more secure restructuring and modernization of SAP systems and realizing data-driven innovations via the cloud.

Some 2,600 customers worldwide from all sectors and of all sizes trust in SNP, including 21 DAX40 and 95 Fortune 500 companies. The SNP Group has around 1,400 employees worldwide in more than 40 locations in 15 countries. Headquartered in Heidelberg, the company generated revenue of € 173.4 million in the 2022 fiscal year.

Further information is available at www.snpgroup.com  

SNP contact

Marcel Wiskow
Director Investor Relations
Tel.: +49 6221 6425-637
Email: marcel.wiskow@snpgroup.com
presse@snpgroup.com