EQS-News: KPS publishes results for the third quarter of the 2023/2024 financial year

KPS publishes results for the third quarter of the 2023/2024 financial year

• Revenues in the third quarter of the 2023/2024 financial year reached EUR 35.1 million
• EBITDA rose to EUR 5.2 million in the third quarter (previous year: EUR 1.4 million). The main reasons for the increase are cost-cutting measures implemented in material costs and personnel expenses, as well as the reversal of provisions as part of the remeasurement of purchase price allocations from company acquisitions.
• Work is ongoing on measures to increase efficiency.
• The forecast for the 2023/2024 financial year has been revised.

Unterföhring/Munich, July 25, 2024 – KPS AG (WKN: A1A6V4 / ISIN: DE000A1A6V48), a leading European consulting company for digital transformation and process optimization in retail, has published its results for the third quarter of the 2023/2024 fiscal year.

In the third quarter of the 2023/2024 fiscal year, KPS generated revenues of EUR 35.1 million (previous year: EUR 42.2 million) and EBITDA of EUR 5.2 million (previous year: EUR 1.4 million). The increase in new orders recorded in the third quarter only partially compensated for the decline in revenues compared to the same period of the previous year due to the simultaneous completion of large projects.

Recording the recovery phase in Q3 2023/2024

KPS responded to the sales trend in the first half of the year with appropriate measures, which have already borne fruit in the third quarter of 2023/2024. Production capacities were adapted to the demand for the project, which consequently led to a reduction in expenditure on materials and personnel in the single-digit million euro range compared to the third quarter of the 2022/2023 financial year.

The remeasurement of the purchase price allocation for business acquisitions led to the release of a provision, which had an impact on income of EUR 2.6 million in the reporting period.

KPS achieved a profit before tax of EUR 3.1 million (previous year: EUR -1.0 million) and a profit after tax of EUR 2.2 million (previous year: EUR -0.7 million).

Correction of the forecast for the financial year 2023/2024

Part of the revenue in Q3 2023/2024 was generated from projects that are in the final or mature phase. Demand for new projects increased and new customers were acquired, but the order volume is not sufficient to fully compensate for large projects in the final phase.

The Management Board of KPS AG adjusted its original forecast for the 2023/2024 financial year on 23 July 2024. For the current 2023/2024 financial year, the Management Board of KPS AG now assumes that Group revenues will be in the range of EUR 143 million to EUR 149 million compared to the original forecast. Group EBITDA is expected to be between EUR 5.4 million and EUR 5.7 million. After taking into account the extraordinary provisions for the insolvency of KaDeWe and The Body Shop as well as restructuring costs, Group EBITDA is expected to be between EUR 10.8 million and EUR 11.1 million.

July 25, 2024

KPS AG
Management

About KPS AG

KPS successfully guides companies on their path to digitalization, from strategy to customer interaction and core operations. As a leading transformation partner for the retail industry, KPS is the first choice for companies that rely on a state-of-the-art customer experience platform architecture. KPS’s industry-specific Instant Platforms unify all processes on a single business platform – from customer interaction to operations and finance, implemented using best-in-class technology components in a future-proof, efficient design and flexible infrastructure. They are modular, scalable and significantly increase the speed of process-driven transformation programs. With ready-to-use products and innovative solutions, market-leading technologies and a strong partner network, we create sustainable added value for our customers. Platform your transformation. www.kps.com

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