DGAP-News: SNP Achieves Significant Increase in Revenue and Earnings in the First Half of 2022, Confirms Growth Targets

SNP Achieves Significant Increase in Revenue and Earnings in the First Half of 2022, Confirms Growth Targets

• Strongest six months in SNPs history in terms of revenue: 83.3 million (H1 2021: 75.1 million)
• EBIT positive for first time since 2016 at 1.8 million (H1 2021: -1.1 million)
• Revenue of 42.3 million in the second quarter of 2022 at the same level as the previous year (Q2 2021: 42.6 million); EBIT of 0.7 million (Q2 2021: 1.7 million)
• Positive market response to new generation of CrystalBridge software platform
• Forecast for 2022 fiscal year confirmed in difficult market environment

Heidelberg, August 10, 2022 SNP Schneider-Neureither & Partner SE (ISIN: DE0007203705), a leading global provider of solutions for digital transformation processes and software-based data migrations, has today published its report for the first six months of 2022. Revenue increased to 83.3 million (H1 2021: 75.1 million). EBIT reached a volume of 1.8 million and thus increased significantly, by 2.9 million (H1 2021: -1.1 million). In addition, the company is confirming its forecast for 2022.

We can look back on the strongest six months in our companys history in terms of revenue, and have achieved a positive half-year result for the first time since 2016. This trend is impressive confirmation that we are on the right track with the implementation of our ELEVATE strategic program, says Michael Eberhardt, CEO of SNP SE. Transformation processes and data management remain essential to our companys long-term success. We will continue to expand our position in a challenging market environment with the next generation of our CrystalBridge software platform, which we presented in June. We are particularly confident about the development of our partner and software business. We expect an additional growth spurt in the second half of the year and are confirming our forecast.

Group revenue increased by 10.1% in the first half of the year to 83.3 million (H1 2021: 75.1 million). Revenue increased even more strongly in like-for-like terms*, and was around 14% higher than in the same period in the previous year. All regions contributed to this growth. Earnings before interest and taxes (EBIT) reached  1.8  million, and were thus significantly higher than the previous years level of  -1.1 million. The EBIT margin was 2.2%. At 42.3 million, revenue in the second quarter of 2022 was at roughly the same level as the previous year (Q2 2021: 42.6 million). EBIT in the same period came to 0.7 million and was thus below the previous year (Q2 2021: 1.7 million).

All in all, SNP successfully drove forward the implementation of its ELEVATE growth strategy in the first half-year of 2022. This is particularly evident in the growth of its software and partner business: Software revenue was slightly higher than in the previous year, at 23.8 million. Adjusted for up-front contracts, the Software business segment grew by 25%. The figure for the previous year included partner contracts with software quotas (amounting to 4.5 million) immediately impacting revenue and earnings. At the same time, the revenue achieved through partner companies increased significantly by 59% and reached a volume of around 23 million (2021: 14.5 million); this represents an overall revenue share of approximately 28% (2021: 19%).

Thanks to the successful development of its business activities in the first six months of 2022, SNP is now well-positioned to achieve strong growth in the second half of the year. SNP gained numerous renowned new customers in the reporting period including Anheuser-Busch InBev, Saudi Aramco, Celanese, Musimundo, Schäffler and Swiss Federal Railways. Due to the uncertain economic environment, customer have adopted a more cautious approach when it comes to signing multiple-year contracts. Order entry in the first six months of 2022 totaled  82.6 million, around 10 % below the figure for the same period in the previous year (H1 2021: 91.9 million). However, in like-for-like terms*, order entry was around 4% higher than the previous years level. In addition, order entries in the strategically important partner business rose by around 3% to 27.9 million.

As in the previous year, the management expects to see stronger growth momentum in the second half of the year. Moreover, SNP expects that the consistent implementation of its ELEVATE growth strategy will reflect positively on its financial figures in the future. In this context, the company is confirming its forecast for 2022 as well as its mid-term forecast.

For 2022 as a whole, SNP still expects that

• the order entry volume of the SNP Group will be driven, in particular, by the Groups software and partner strategy which will gain further market acceptance and will significantly exceed the previous years level (2021: 192 million);
• revenue will fall in a range of between 170 million and 190 million (2021: 167.0 million; 2021 like-for-like*: approx. 160 million);
• the EBIT figure will fall in a range of between 10.5 million and 13 million. The EBITDA figure will increase more strongly in absolute terms than the EBIT figure. This is mainly due to the amortization of intangible assets added as a result of the acquisitions made in 2021 (PPA depreciation/amortization).

Please see the 2022 half-year financial report for further information: https://www.snpgroup.com/en/financial-publications

*As pro forma key figures, the like-for-like key figures for the first six months of 2021 differ from the reported key figures due to the addition of the key figures for Datavard and EXA in the first six months of 2021 (EXA prior to its acquisition date of March 1, 2021) and the elimination of the key figures for SNP Poland in the first six months of 2021.

About SNP

SNP is one of the worlds leading providers of software for the management of complex digital transformation processes. Unlike traditional IT consulting in an ERP environment, SNP employs an automated approach that uses proprietary software. With the data transformation platform CrystalBridge^(R) and the SNP BLUEFIELD^TM approach, IT landscapes can be restructured and modernized much faster and more securely, and data can be securely migrated to new systems or cloud environments. This provides customers with clear qualitative benefits while also reducing their investment of time and expense.

The SNP Group has around 1,350 employees worldwide. Headquartered in Heidelberg, the company generated revenue of approximately  167 million in the 2021 fiscal year. SNPs customers are global corporations from all industries. SNP was founded in 1994 and has been publicly traded since 2000. As of August 2014, the company is listed on the Prime Standard segment of the Frankfurt Stock Exchange (ISIN DE0007203705). Since 2017, the company has operated as a European stock corporation (Societas Europaea/SE).

Further information is available at www.snpgroup.com

SNP contact:
Marcel Wiskow
Head of Investor Relations
Tel. +49 6221 6425-637
Email: Marcel.Wiskow@snpgroup.com