CREALOGIX

High one-off investments impact EBITDA in the financial year 2021/22

Crealogix Holding AG / Key word(s): Annual Results CREALOGIX: High one-off investments impact EBITDA in the financial year 2021/22 13-Sep-2022 / 07:01 CET/CEST Release of an ad hoc announcement pursuant to Art. 53 LR The issuer is solely responsible for the content of this announcement. Ad hoc announcement pursuant to Art. 53 LR

CREALOGIX sales fell by 14% to CHF 94 million in the challenging financial year 2021/22. This drop in sales, together with the extraordinarily high capital investment for the implementation of the development bank product in Germany led to a negative EBITDA of CHF 9.3 million. The implemented cost reductions and the conclusion of the investment in the development bank product will ensure a rapid return to positive EBITDA in the financial year 2022/23.

 

Swiss fintech company CREALOGIX invested significantly in the development of its existing and new products in the financial year 2021/22. Its portfolio of products and services were  streamlined and consolidated according to strategic realignment criteria. For various reasons, including the fall in one-off sales, net turnover amounted to CHF 94 million, a drop in sales of 14% compared with the previous year. At the same time, the proportion of recurring sales now amounts to 51.3% of total sales. In addition to converting the licence model, the planned transfer of service revenue to implementation partners, exchange rate effects (CHF 1.6 million) and the weaker sales of payment devices all contributed to the drop in sales.

 

Extraordinarily high capital investment leads to a loss

The greatly increased product investment of 31% of total sales (previous year: 22%) led to a negative EBITDA of CHF 9.3 million. The implementation of the development bank platform in Germany represents the achievement of an important objective in product development for CREALOGIX, and the investment is 90% complete. The fall in sales volume and inflation in the production countries had an additional impact on the EBITDA. This could not be fully offset by means of cost savings and price increases.