EQS-News

Publication of the 2022/2023 consolidated financial statements and the results for the first quarter of 2023/2024 - Seite 2

Financial year 2022/2023: Weak investments in retail and overcapacities provide additional negative factors

In the 2022/2023 financial year, KPS generated revenues amounting to € 177.8 million (previous year: € 180.0 million). Group revenues were thus in line with the forecast revised in April 2023 and slightly below the previous year's figure. The normalisation of consumer demand in the e-commerce sector following the boom during the coronavirus pandemic, deteriorating economic prospects and increasing geopolitical risks weighed on the willingness of retailers to invest in e-commerce and strategy projects. In addition, some ongoing projects have reached their planned maturity phase and had a negative impact on revenue development, as revenue typically declines in the maturity phase of a project.

The ERP projects segment developed positively. Accordingly, the Germany region recorded a pleasing revenue trend and was able to increase revenues by 17.6% to € 88.1 million. In contrast, revenues abroad fell by € 14.9 million. Due to the strong revenue increase in Germany, the sales mix shifted significantly compared to the previous year. The revenue share generated in Germany rose from 41.7% in the previous year to 49.6% in the 2022/2023 financial year.

Financial year 2022/2023: EBITDA and EBIT influenced by several factors

The insolvency of KaDeWe and other factors led to challenges for KPS in the 2022/2023 financial year.

In anticipation of rising demand, KPS significantly increased the number of consultants in the 2021/2022 financial year and at the start of 2022/2023, particularly in the area of e-commerce. In the weak environment and due to the lack of new e-commerce projects, this led to underutilisation of the company's own employee capacities.

The use of external consultants and service providers was increased so that the high volume of ERP projects could be carried out successfully and within the agreed deadlines. Due to the specific requirements profile, the excess capacity in the e-commerce area could not be used for the high volume of orders for ERP projects.

In addition, inflation-related increases in personnel expenses had a negative impact on earnings.

KPS reacted to the economic headwind and took countermeasures. Capacities were adjusted in line with project demand, restructuring measures were introduced and sales were additionally strengthened. The adjustments led to extraordinary expenses amounting to € 1.9 million.