Comarch’s financial results for the four quarters of 2021
More than PLN 1.62 billion (EUR 354.9 million) worth of revenue from the sale of products and services of the Comarch Capital Group was achieved in the twelve months of 2021. This is almost PLN 88 million (EUR 11.4 million) more than last year. Net profit attributable to shareholders of the parent company reached PLN 120.5 million (EUR 26.3 million) and was similar to the result achieved in 2020. Comparable to last year’s result was EBITDA profit, which amounted to PLN 277.8 million (EUR 60.7 million), which was also comparable to last year’s result. The operating result amounted to PLN 185.6 million (EUR 40.5 million), down by around PLN 6 million (EUR 2.3 million) compared to the same period in 2020.
The increase in Comarch’s revenue is due both to the development of its foreign operations, mainly in the telecommunications sector, and to increased sales on the Polish market, where sales to the medical sector, as well as ERP solutions, have developed successfully. Total foreign sales of the entire group amounted to PLN 937.6 million (EUR 204.8 million), representing 57.7 percent of the total business.
Sales revenue in Q4 2021 reached PLN 517.4 million (EUR 113 million). The operating result amounted to PLN 61.8 million (EUR 13.5 million), while net profit attributable to shareholders of the parent company reached PLN 35.6 million (EUR 7.8 million. The Group generated EBITDA of PLN 89 million (EUR 19.4 million) in Q4 2021.
Sales to telecommunications companies accounted for the largest share of revenue in 2021, amounting to PLN 403.4 million (EUR 88.1 million). The highest increase – 53 percent. – recorded sales to the medical sector. Customers in this sector purchased systems and services worth PLN 62.5 million (EUR 13.7 million). Sales of solutions for SMEs in Poland also developed dynamically. The value of the sales amounted to PLN 239.5 million (EUR 52.3 million), i.e. by around PLN 33 million (EUR 6.2 million) more than in the previous year. Sales to customers in the trade and services sector also recorded an increase, with a value of PLN 246.2 million (EUR 53.8 million), PLN 14.5 million (EUR 2 million) more than in 2020. Comarch also improved sales to industrial and utilities customers by nearly PLN 2.5 million (in EUR this is a decrease of EUR 0.4 million due to changes in exchange rates in 2021 compared to 2020). In contrast, there was a decline in the finance and banking sector (down 12.7 percent) and the public administration sector (down 13.6 percent). Sales of ERP solutions in the DACH market also decreased by 14.8 percent.
“Financial results of the Comarch Capital Group show that the company’s situation is stable and the business is consistently growing. We maintain very good sales of products and services in the domestic market and successfully complete contracts abroad. The development of an international sales network and experience in conducting projects for global companies bring benefits and translate into contracts, among others, in Asian countries that invest heavily in modern technologies from foreign suppliers. We are also strengthening our presence in the Antipodes, where we are carrying out the largest contract in Comarch’s history – a contract with Vodafone New Zealand for the supply of software and provision of IT system maintenance services. At the same time, the company is not slowing down in Western European countries, where sales are growing steadily. The company’s good financial position also allows us to make investments in both new and existing product development and infrastructure. Construction is underway on a data processing center in Mesa, Arizona. The launch of our own data center, planned for this year, will allow us to strengthen our position in the US and increase the diversification of Comarch’s ICT infrastructure”, says Konrad Tarański, Vice President of the Management Board and CFO of Comarch.
The Management Board of Comarch SA monitors on an ongoing basis the impact of the political and economic situation in Ukraine and Russia on the activities of the Comarch Group. At present, the consequences of the Russian invasion of Ukraine do not have a significant negative impact on the economic situation of the Comarch Group, and operations are conducted without disruption. Comarch’s business is very well diversified geographically, by product, and by industry. The Group has projects in over 60 countries on 6 continents. The ICT infrastructure of the Comarch Group is also very well diversified and constantly improved. Comarch continues to be a stable workplace and business partner for customers around the world. Comarch Group revenue from sales in Ukraine and Russia in 2021 amounted to 1.5 percent of total sales revenue. Revenue from sales to Russia will be lower this year, as the Comarch Group is ceasing operations in Russia due to the hostilities in Ukraine and the sanctions being introduced. Every effort will be made to maintain continuity in project implementation in Ukraine.
“The Comarch Group stands in full solidarity with the Ukrainian people and on the first day of the conflict, 24 February, it launched an organized campaign to support the arrival of its Ukrainian employees and their families to Poland and ensure their stay. Dozens of people were helped, mainly women and children. At the same time, we address our assistance to all Ukrainian citizens. We provide support in all possible forms, e.g. by directly financing the supply of materials needed in Ukraine, using our car fleet to organize transport, by providing company housing, medical care at the iMed24 Medical Centre, Comarch’s recreational infrastructure, and we help organize the stay in Poland for people coming from Ukraine. We also coordinate assistance organized by Comarch employees”, informs Konrad Tarański.
In 2021, the Comarch Group increased its workforce; as of 31 December 2021, the Group employed 6,723 people, 261 more than on 31 December 2020.