ALSO Achieves Excellent Result
2019 was a highly successful year for broadliner ALSO. "The unique growth profile enables the company to not only achieve its ambitious targets, but to even exceed them. The excellent and constantly expanding ecosystem, the systematic implementation of our MORE strategy, the three business models Supply, Solutions and Service, and the continuous development of digital technology platforms are the base of this success", says Gustavo Möller-Hergt, Chairman of the Board of Directors and CEO of ALSO Holding AG.
The ALSO Group's net sales increased from €9.2bn to €10.7bn (+ 16.5%). 52% of this increase was achieved by means of organic growth. In the Supply sector net sales increased by 16.4%, in Solutions by 16% and in Service by 21%. Within this business model especially cloud-based revenue increased significantly (+ 58%). The total number of seats grew from 2.3 million to 3.8 million.
The company generated EBITDA of €197m in 2019 as compared to €153m in the previous year. On a like-for-like basis (excluding the effects of IFRS 16), EBITDA climbed by around €20m or 13.2% to around €173m in fiscal year 2019. Consolidated net profit improved by 23.6% to around €100m (previous year: around €81m). Encouragingly, the acquisition in Poland has already started to contribute to earnings thanks to its rapid integration. Hence, ALSO has exceeded the analysts' consensus expectations.
The good earnings performance, combined with the optimisation of the net working capital lead to an improved cash flow. Cash holdings were increased by 45.4% to €349m (previous year: €240m). This led to an improvement in net financial debt on a like-for-like basis, i.e. before the effects of IFRS 16. It was reduced by 79% from €163m to €34m.
Gustavo Möller-Hergt emphasises: "it is remarkable that we were able to reach this result while at the same time transforming the organization as well as the net working capital."
Various IT market research institutes are forecasting an increase in IT spending of around 3 percent in the EMEA region in 2020. In the next few years, ALSO will focus on the following tasks:
expansion of market share in the traditional business in countries where the company do not yet have a dominant position
growth of the Solutions and Service business models
rollout of platforms for IoT, cybersecurity and streaming
full integration of the acquisitions made in Eastern Europe
additional acquisitions, whether geographically or technologically motivated
For 2020 ALSO is planning to improve its reported EBITDA to between €210m and €220m euros. New technologies constantly offer new opportunities for our business. In combination with the velocity of response and strength of implementation of the employees ALSO sees excellent potential for growth. Hence, ALSO Group has increased its midterm target for EBITDA to a range of €250m to €310m. Expectations for the ROCE are 13 to 14%.