Etteplan: Small weakness in profitability in Q2, full year guidance unchanged - Nordea

Revenue growth was close to consensus (Refinitiv) but EBITA came 7% below consensus in Q2. Adjusted EBITA in Software and Technical documentation segments were also under our expectations in Q2. Project postponements combined with unexpected demand variation reduced efficiency and utilisation ratios leading to a weaker than expected profitability. Travelling and training expenses were also up in Q2 y/y. However, the number of hours sold in the Chinese market was down only by 1.6% y/y in Q2 which was good performance taking into account COVID-19 lockdowns in the country. Operating cash flow was only EUR 4.4m in Q2. Increased receivables and higher expenses had a negative effect on cash flow in Q2. Full year guidance was unchanged. Etteplan is relatively confident for the demand situation in H2 2022. But uncertainty related to industrial investments and order backlogs has increased.

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