All for One Group SE – Significant growth in sales and margins in Q1 2023/24 // Disproportionate cloud growth // First in class for SAP cloud business // First in class for migrations to SAP S/4HANA around the globe // Management board confirms guidance for 2023/24

Unaudited results:

• Sales increase by 11% to EUR 133.8 million (Oct – Dec 2022: EUR 120.4 million); share of recurring revenues is 52% (Oct – Dec 2022: 53%)
  • Recurring revenues increase by 11%
  • Strong growth driven by S/4HANA migrations using CONVERSION/4 – up 23%
  • Licence sales (incl. commission) significantly up year on year
• EBIT before M&A effects (non-IFRS) up 76% to EUR 11.0 million; EBIT margin before M&A effects (non-IFRS) increases to 8.2% (Oct – Dec 2022: 5.2%)
• Pole position: Ranked 1st in 2023 for SAP conversions around the globe and for SAP cloud business in Central Europe
• Top C level event in April: Midmarket Forum with integrated Capital Market Day
• 2023/24 outlook confirmed

Filderstadt, 5 February 2024 – All for One Group SE, a leading international IT, consulting and service provider focusing on SAP solutions, products and services, published its preliminary unaudited results for the period from 1 October to 31 December 2023 today.

In Q1 2023/24, the Group generated sales of EUR 133.8 million, up 11% compared to the prior-year result of EUR 120.4 million. The increase is indicative of the strong demand for products and services for migrating to SAP S/4HANA, for which All for One Group offers CONVERSION/4 – an innovative model that extends far beyond just technical migration. Recurring revenues accounted for 52% (Oct – Dec 2022: 53%) of total sales.

Pole position in the SAP environment

This positive sales performance is enabling All for One Group to further hone its outstanding competitive edge as one of the leading providers of SAP services in the DACH (Germany, Austria, Switzerland) region and Poland. »All for One Group occupies an outstanding position in the SAP environment. We are now the leading SAP cloud partner in Central Europe. Which basically means that we were the strongest partner in terms of sales of SAP cloud solutions in Central Europe in 2023. And not only that: Our CONVERSION/4 model powered by Bluefield™ made by SNP (Schneider-Neureither & Partner SE, Heidelberg) has also put us first in class as the partner for conversions around the world. Specifically, that means we have converted more companies to SAP S/4HANA with the Bluefield™ approach than any other SAP partner the world over. This constitutes a remarkable success and creates a very good foundation for our development over the coming years and for our growth strategy« is how Michael Zitz, Co-CEO of All for One Group, describes the current developments.

All for One Group made an early start to adjusting its business model both to the changing market environment – and especially to the shift of the SAP portfolio to the cloud – and to future customer requirements, and has successfully completed the reorganisation of its CORE segment. The Group is increasingly reaping the benefits of its Cloud First approach, the expansion of its portfolio of products and services, and its »CONVERSION/4« migration model.

At EUR 70.1 million (plus 11%), recurring revenues account for 52% (Oct – Dec 2022: 53%) of total sales. The trend towards the cloud is particularly visible in the Cloud Services and Support revenues (plus 16% to EUR 34.6 million), whereas Software Support sales only increased slightly, to EUR 30.5 million (plus 4%). Licensing revenues (incl. commission) exceeded expectations, increasing to EUR 15.5 million (plus 81%) in Q1 2023/24, and reflect in particular the growing demand from new and existing customers for cloud-based SAP S/4HANA solutions (RISE).

With a good volume of orders on hand, sales in the CORE segment increased significantly by 13% to EUR 119.5 million (Oct – Dec 2022: EUR 106.2 million), while EBIT before M&A effects (non-IFRS) more than doubled to EUR 9.5 million. Capacity utilisation in the LOB (lines of business) segment fell slightly short of expectations due to the current economic environment. Sales declined by 4% to EUR 18.5 million (Oct – Dec 2022: EUR 19.2 million). EBIT before M&A effects (non-IFRS) was EUR 1.5 million (Oct – Dec 2022: EUR 1.6 million) while the margin held firm at 8.1%.

EBIT before M&A effects (non-IFRS) increased significantly by 76% to EUR 11.0 million with a margin of 8.2% in Q1 2023/24. EBIT was EUR 9.5 million, an increase of 24%. The result for the period grew by 10% to EUR 6.7 million and earnings per share increased to EUR 1.33 (plus 11%).

The equity ratio as of 31 December 2023 was a solid 31% (30 Sep 2023: 29%). Year on year, the headcount as of 31 December 2023 increased to 2,807 (31 Dec 2022: 2.787).

In pursuit of its strategy of international development and its growth targets, the Group is continuing to invest in recruiting, developing and retaining employees, especially in the Regional Delivery Centers.

Top C level event in April 2024: Midmarket Forum with integrated Capital Market Day

A further area of investment is the Midmarket Forum on 24 and 25 April 2024 in Frankfurt am Main, which will be a highlight in the current financial year. All for One Group is looking forward to welcoming 1,000 guests from the midmarket and upper midmarket to this specialist digitalisation and transformation congress that it hosts every two years. »The Midmarket Forum is a well-established tool for reaching customers – and for acquiring potential new customers, more and more of whom are coming from the SAP installed base – an area we are targeting with heightened focus. These are existing SAP customers who do not yet do business with All for One Group. For the first time, we plan to add a Capital Market Day to this top C level event. We believe this to be a superb choice of platform for the event«, is how Michael Zitz explains the expanded format.

Right on track: Guidance 2023/24 confirmed

The management board is holding firm to its guidance for financial year 2023/24. According to CFO Stefan Land: »We’ve done our homework, we are in an excellent position, and we have extensively adjusted our margins and efficiency – by driving the focused expansion of our Regional Delivery Centers in Poland, Egypt and Turkey, for example. All for One Group is right on track.«

Given its outstanding position in the SAP environment and the optimisations and improvements that were put in place last year, the management board continues to expect the Group to reap above-average benefits from a growing market for IT consulting and services. Which should translate into further sales growth and greater profitability.

As things stand at present, and presuming a continued robust and steady stream of incoming orders and a stable and broad customer base, the excellent position of the Group in the SAP environment, and based on the growth rates predicted for the IT consulting and services market, the management board of All for One Group expects sales to be between EUR 505 million and EUR 525 million in financial year 2023/24 (2022/23: EUR 488 million). EBIT before M&A effects (non-IFRS) is predicted to be in a range between EUR 32 million and EUR 36 million (2022/23: EUR 17.7 million). 

The board also reaffirmed its mid-term outlook of robust organic growth in the mid-single-digit percentage range and a margin of between 7% and 8% for EBIT before M&A effects (non-IFRS) up to financial year 2024/25.

All for One Group SE will be publishing its full quarterly statement for the 3-month period 2023/24 as scheduled on 9 February 2024.

About All for One Group SE

All for One Group is an international IT, consulting and service provider with a strong SAP focus. Determined to translate technology into a clear business advantage, the Group specialises in specific sectors of industry, accompanying and supporting the sustainable transformation of its more than 3,500 midmarket customers in Germany, Austria, Poland and Switzerland on their journey to the cloud. Focus is on SAP S/4HANA, which forms the digital core for the industry-specific processes throughout a business. All for One Group is the leading SAP partner in Central and Eastern Europe, both for transformations to SAP S/4HANA using its innovative CONVERSION/4 model, and for SAP cloud business.

In financial year 2022/23, All for One Group SE generated sales of EUR 488 million with its team of almost 3,000 employees. The Group is based in Filderstadt near Stuttgart, in Germany, and is listed in the Prime Standard on the Frankfurt Stock Exchange.

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