The Comarch Capital Group achieved record financial results in 2019. Sales revenue increased by 5.0%, i.e. by PLN 67.8 million compared to 2018 and reached the value of PLN 1,437.4 million. Operating profit reached PLN 143.4 million, while net profit reached PLN 104.8 million. Operating margin in 2019 was 10%, and net margin 7.3%. A year ago these values were 6.4% and 2.2%, respectively. Such a significant improvement in profitability was possible due to the increase in the scale of the Group's operations, extension of the market offer and continuous improvement of the effectiveness of the undertaken actions.
Last year there was a further rapid increase in sales of Comarch proprietary solutions. The demand for Comarch Group's software, as well as services related thereto, increased especially on foreign markets. Solutions for telecommunications, Loyalty, EDI and ICT, as well as ERP systems enjoyed particular interest of customers. Due to the wide and comprehensive offer of modern IT solutions and high quality services, the Comarch Group is the largest Polish software producer and one of the leading IT suppliers in the world. In 2019, the Group successfully continued its growth strategy based on developing its own products for many industries and selling them on international markets. I would like to emphasize that for many years the Comarch Group has incurred significant expenditure on the development and maintenance of the global sales network, thanks to which the international brand recognition and range of the Comarch offer are increasing, which effectively supports the sales of the Group's solutions on new markets. Last year, a new subsidiary, Comarch Pty. Ltd. in Australia joined the Group.
In 2019, the Comarch Group made significant investments in developing new and improving existing IT products. Expenditures for research work exceeded PLN 230 million, which represents 16% of the Group's sales revenue. I would like to point out that these key investments are financed primarily from the company's own funds. The Comarch Group has intensively developed a new generation of telecommunications systems dedicated to 5G technology, loyalty systems, ERP systems, IT solutions for medicine and in the field of Internet of Things. In 2019, the Group invariably focused on the development of IT solutions in the services model - Comarch is one of the market leaders in this field. Last year, the Comarch Group launched a comprehensive offer in the field of Comarch Cloud computing cloud, with the highest security standards, based on the Comarch Data Centre infrastructure. Thanks to Comarch Cloud, customers can use software, store data and run their businesses without their own IT infrastructure, while ensuring high performance, reliability, security and scalability of resources.
Last year, the Comarch Group strengthened its position as one of the fastest growing employers in the IT sector. In 2019, the employment volume increased by 308 employees, at the end of the year the Group employed 6,348 people worldwide. As every year, the program of summer student internships was very popular, thanks to which the Comarch Group is perceived as the first choice employer on the labor market in the IT industry.
The Management Board of the Comarch Group strives to effectively implement the mission of spreading worldwide innovative technical thought created in Poland. In addition to business activities, the Comarch Group implements a policy of corporate social responsibility and is involved in activities for environmental protection, preservation and reconstruction of the national heritage, and also actively supports non-governmental organizations and charity campaigns, is a patron of culture, art and sport.
Given the current situation in Poland and in the world, I emphasize that the Comarch Group is very well prepared to operate also in the conditions of the expected economic slowdown caused by the Covid-19 epidemic. I am convinced that due to the very good financial situation, significant product, industry and geographical diversification of its offer and the commitment of employees, Comarch will be able to strengthen its market position as a global provider of IT solutions in the coming periods, to the satisfaction of customers, employees, shareholders and the whole social and economic environment.
Professor Janusz Filipiak,
President of the Management Board of Comarch S.A.