Summary of interim period, October-December 2024
- Net sales SEK 927 million (740), an increase of 25%
- Recurring revenues SEK 769 million (611), an increase of 26%
- EBITA SEK 269 million (224), an increase of 20%
- EBITA margin 29% (30)
- Operating profit SEK 178 million (146), an increase of 22%
- Operating margin 19% (20)
- Earnings per share before dilution SEK 2.43 (2.13), an increase of 14%
- Cash flow from operating activities SEK 102 million (-11)
- Acquisitions of Olyslager, Roidu and Figlo
Summary of interim period, January-December 2024
- Net sales SEK 3,334 million (2,778), an increase of 20%
- Recurring revenues SEK 2,878 million (2,346), an increase of 23%
- EBITA SEK 1,002 million (876), an increase of 14%
- EBITA margin 30% (32)
- Operating profit SEK 697 million (590), an increase of 18%
- Operating margin 21% (21)
- Earnings per share before dilution SEK 10.74 (9.04), an increase of 19%
- Cash flow from operating activities SEK 1,041 million (718)
- The Board of Directors propose a dividend increase to SEK 3.60 per share (3.00)
New peak levels for sales, earnings and cash flow
2024 had a strong conclusion with new peak levels for both sales and earnings. All types of revenue increased. Total sales for the fourth quarter amounted to SEK 927 million, an increase of 25%. Our recurring revenues accounted for SEK 769 million, an increase of 26%. Licensing, service and other revenues also increased compared with the same period last year, following high levels of activity and the completion of several major projects which are now shifting to contribute to our recurring revenues in the years ahead. The EBITA level increased by 20% and amounted to SEK 269 million, compared to SEK 224 million last year.
Sales for the full year totaled SEK 3,334 million, adjusted for currency effects, reflecting an increase of 20%, of which 9% was organic and 11% was from acquisitions. Our EBITA surpassed SEK 1 billion for the first time, reaching SEK 1,002 million. The margin was 30%.
Cash flow from operating activities also strengthened. For the quarter, it amounted to SEK 102 million compared with SEK -11 million, but most notably, a clear increase can be observed for the full year: SEK 1,041 million compared with SEK 718 million, an improvement of an impressive 45%. As most of our revenue comes in during the first quarter due to our prepaid recurring revenues, the year follows the standard seasonal pattern.
Growth in both sales and earnings demonstrates once again the strength of our business model, which is based on recurring revenues, market-leading positions and business-critical products in our existing business units. These are expanded through acquisitions of similar companies. Many business units support the most value-generating processes of our 26,000 customers, in over 20 different verticals. The Group is therefore relatively less sensitive, especially in the short term, to fluctuations in the macro environment or challenges in specific segments. During the year, we continued to increase the use of AI, which has improved our efficiency as an organization and will benefit our customers more and more through new products and modules for increased automation of processes. We continue to see that our customers are managing their payments and the net inflow of customers is stable. This gives us a good platform for continuing our development from now, as we enter our anniversary year. We are currently working mainly from our six home markets, but we have sales to over 50 countries worldwide. These are markets that can be expanded both organically and through new acquisitions.
Regarding acquisitions, the year finished on a high note with the addition of three fine companies to the Group. We conclude the full year of 2024 with fully seven new companies, which is a record for us. Acquisitions for the quarter included Dutch Olyslager, an international software and data company for lubricant and fluid suppliers. Finnish Roidu was acquired later the same month, with an offering based on digital tools for evaluating patient, employee and customer experiences, primarily in the Finnish healthcare sector. Finally, Dutch Figlo was acquired in December. The company provides software for financial planning and mortgage calculations. We are a secure and permanent home for vertical software companies and we have a strong and stable offering for customers, staff and owners. The Board proposes an increased dividend, for the 23rd consecutive year, to SEK 3.60 per share, an increase of 20%.
Finally, I would like to thank all of our employees, without whom these successes would not have been possible, and I look forward to celebrating Vitec's 40 years during the anniversary year of 2025.
Olle Backman, CEO and President,
Vitec Software Group
For more information, please contact
Olle Backman, CEO and President, Vitec Software Group AB (publ)
olle.backman@vitecsoftware.com, +46 70 632 89 93
Patrik Fransson, Investor Relations, Vitec Software Group AB (publ),
patrik.fransson@vitecsoftware.com, +46 76 942 85 97
About Vitec Software Group
Vitec is a leading provider of Vertical Software and has its origin and headquarters in Umeå, Sweden. Our products are developed to meet specific needs within various niche markets in society. The expertise of our employees, combined with our shared corporate culture and business model, enable continuous improvement and innovation. We grow through the successes of our companies, as well as through acquisitions. Everything we do is based on a long-term perspective. Because we are to rely on - today and tomorrow. Vitec has 1,660 employees, is listed on Nasdaq Stockholm and had net sales of SEK 3,334 million in 2024. Read more at vitecsoftware.com.
This information is information that Vitec Software Group is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact persons set out above, at 2025-02-05 08:00 CET.
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