adesso SE continues to grow strongly in Q1 2023 and increases sales by 32 % to EUR 276.2 million / Sick leave and growth-related delays in capacity utilisation dampen profitability despite good order situation / Guidance for full year confirmed

adesso SE continued its growth course in the first quarter of 2023. According to preliminary figures, sales increased by 32 % to a new quarterly high of EUR 276.2 million (previous year: EUR 209.8 million), which was stronger than expected. In order to secure additional possible assignments and in view of a highly competitive market for the acquisition of additional talent, recruiting was driven forward. Hence, the number of employees (FTE) was increased by 36 % to over 8,500 as of the reporting date and thus disproportionately to turnover. Although the sickness rate was lower than in the previous year-end quarter, it continued in the first months of 2023 and was significantly higher than the average of previous years. With demand for adesso's services remaining high, the delays in capacity utilisation due to the high pace of growth persisted, particularly in the first two months of the new year. The cyber attack on adesso's IT discovered in January 2023 did not have a significant impact. At EUR 17.9 million (previous year: EUR 27.9 million), the EBITDA operating result was 36 % lower than in previous year's first quarter, which also benefited from higher licence sales and other operating income. The main driver is personnel expenses, adesso's largest cost item, which rose at a disproportionately high rate of 42 % compared to sales. In view of the general wage inflation, personnel costs per FTE rose comparatively moderately by 3,4 %. Viewed in isolation, the effect is mitigated by price increases in the case of corresponding capacity utilisation. The decline in EBITDA leads to preliminary consolidated earnings of EUR 2.0 million (previous year: EUR 12.5 million). Earnings per share are calculated at EUR 0.28 (previous year: EUR 1.92).

Despite the fact that earnings development in the first quarter was below expectations, the outlook for the rest of the financial year remains positive. The Executive Board anticipates a normalisation of the sickness rate and, in view of the measures initiated, an increase in capacity utilisation. The order backlog is at a record level. The second quarter of the year, with the lowest number of working days, will not yet make a significant contribution to improving margins. In comparison to Q2 2023, the third quarter of the year holds six and the fourth quarter two more working days. Additional licensing revenues with the in|sure Ecosphere are expected especially in the second half of the year. On this basis, the Executive Board reaffirms its original full-year 2023 forecast of more than EUR 1 billion in revenue with EBITDA of EUR 100 to 110 million.

Explanations of the key figures used are published on the company's website at www.adesso-group.de/en/apm/. The complete quarterly statement based on final figures will be published as scheduled on 15 May 2023 and will be available on the company's website at www.adesso-group.de/en/.