Comarch posts sales revenue increase in Q1 2021
The Comarch Capital Group presented its financial results for Q1 2021. During the three months, revenue from sales of Comarch's products and services increased by PLN 6.16 million compared to the same period in 2020 and reached PLN 384 million. Operating profit amounted to PLN 46.2 million, increasing y/y by PLN 1.4 million, and net profit attributable to shareholders of the parent amounted to PLN 26.078 million, up by PLN 11.9 million on the previous year.
The Group generated an EBITDA of PLN 67.4 million, a figure similar to that of last year. Operating profitability in the period under review was +12.0 per cent, while net profitability was +6.8 per cent.
The Comarch Group's very good financial results are the result of an increase in revenue from domestic sales, which was achieved mainly thanks to increased sales to customers from the SME sector in Poland, trade and service companies and healthcare institutions. Domestic sales accounted for 41.5 per cent of the Comarch Group's total revenue in Q1 2021. The value of foreign sales was lower by PLN 14.8 million, mainly as a result of the lower impact of FX differences from the balance sheet valuation of trade receivables on the value of sales revenue than a year ago.
A clear increase, 66.2 per cent or PLN 4.9 million, was recorded in revenues from sales to the medical sector. Healthcare institutions purchased products and services worth PLN 12.2 million. Double-digit growth was maintained in the sale of systems in the SME segment in Poland. Sales of enterprise management solutions in Poland amounted to PLN 54.2 million, improving the result by PLN 8.7 million. The Group also improved its result in the trade and services segment, where sales of IT solutions amounted to PLN 63.4 million, growing y/y by over 11.2 per cent, and in the case of sales to the finance, banking and insurance sector. Here, revenues increased by PLN 0.5 million to reach PLN 57.7 million.
A slight decrease, i.e. PLN 5.4 million, took place in the segment of revenues from sales to TMT sector customers, but it still constitutes the largest part of Comarch Group's business. This decrease is temporary and was due to significantly higher foreign exchange income from the valuation of receivables in the first quarter of 2020 compared to the first quarter of 2021. Sales of IT systems to telecoms amounted to PLN 91.6 million. Revenues from sales to industrial and utilities customers also declined. Entrepreneurs from these industries purchased Comarch products worth PLN 43.1 million, 12% less than a year ago. Revenues from sales to public entities also fell in Q1 2021: by PLN 1.3 million and to SME customers in the DACH region, by PLN 1.0 million.
- Comarch started the year with very good financial results for the first quarter of 2021. We increased sales and improved profitability at both the operating and net level. This strong performance is the result of many years of investment in new and existing products, as well as active business development in new markets, including Western Europe and Asia. This meticulously pursued long-term strategy is profitable, and the Comarch Group’s situation is stable and guarantees security of operations in the event of a volatile economic situation in Poland and worldwide, says Konrad Tarański, Deputy President of the Management Board and CFO of Comarch.
- The past year has been a challenging one for the company in terms of business and organisation. The coronavirus pandemic forced the implementation of changes in many areas of the company's operations and the preparation of necessary procedures both in the area of maintaining the continuity of customer service and ensuring employee safety. The very good financial results show that Comarch has met this challenge. The company's stable financial situation and business diversification in terms of geography and products make Comarch resistant to micro and macroeconomic changes, adds Konrad Tarański.