EQS-News

KPS publishes results for the first six months of the 2022/2023 financial year

EQS-News: KPS AG / Key word(s): Half Year Report KPS publishes results for the first six months of the 2022/2023 financial year 08.05.2023 / 08:41 CET/CEST The issuer is solely responsible for the content of this announcement. KPS publishes results for the first six months of the 2022/2023 financial year

• KPS increased its turnover by 9.4% to € 94.7 million in the first six months of the 2022/2023 financial year - In the second quarter, customers were noticeably reluctant to take on new projects due to high economic uncertainties.
• EBITDA declined by 31.1% to € 7.6 million - Changed revenue mix, high use of service providers and inflation-related increases in personnel costs weigh heavily on results.
• Reluctance to take on new projects in the area of digital customer interaction (e-commerce) leads to insufficient staff utilisation in this area.
• Measures to increase efficiency initiated: KPS is striving to adjust staffing levels to the current demand situation.
• Reduction of the dividend proposal from € 0.19 to € 0.10 per no-par value share entitled to dividend.

Unterfoehring/Munich, 8 May 2023 – KPS AG (WKN: A1A6V4 / ISIN: DE000A1A6V48), Europe’s leading consultancy for digital transformation and process optimisation in retail, has published its results for the first six months of the 2022/2023 financial year.

In the first six months of the 2022/2023 financial year, KPS generated revenues of € 94.7 million (previous year: € 86.6 million). Compared to the previous year, KPS was thus able to increase its turnover by 9.4%. In the course of the second quarter, KPS already noticed a clear slowdown in demand and in the start of new projects in key markets of the KPS Group. Persistently high inflation, a worsening economic outlook and geopolitical risks are weighing on the willingness to invest in the trade.

Several negative factors lead to significant decline in earnings

In order to meet the high demand for transformation projects, KPS has deployed a large number of service providers, which has had a negative impact on earnings. In addition, KPS invested heavily in building up its own staff in the 2021/2022 financial year, with a focus on digital customer interaction (e-commerce projects). Due to customers current hesitancy to take on new projects in this area, KPS was not able to utilise its team of consultants to the extent planned. Finally, KPS could not escape the effects of high inflation in Europe, which resulted in rising personnel expenses.