Columbus Q1 2023: Higher efficiency boosts operating profit by 33%
Columbus experienced good momentum in the first quarter of the year. Revenue increased by 7% (12% in local currencies) and operating profit increased by 33% in Q1 2023. The optimization of the delivery organization is now really taking effect with a boost in efficiency to 67% against 62% in Q1 2022.
“Our unwavering focus on improving efficiency, improved project quality and cross sales is now reflected in the significantly improved EBITDA margin of 10%. We delivered a solid result in Q1 2023, and we have a positive view of the development with a strong pipeline and order backlog”. Says CEO & President, Søren Krogh Knudsen
Strengthened business foundation
In recent years, Columbus has invested a lot of resources in streamlining the organization which has ensured a higher project quality and optimization of the delivery model. Quarter after quarter, we have delivered organic revenue growth and in Q1 2023, we have also lifted earnings significantly.
With the strengthened business foundation, we are now ready to grow through acquisitions. Therefore, it was also a great pleasure that we could announce the acquisition of the Danish IT security company, ICY Security, in mid-April 2023. Advisory within IT security has long been sought after by our customers, and with the acquisition we have gained an expanded advisory opportunity in a strategic very important area.
Positive development in earnings in Q1 2023
Revenue increased by 7% in Q1 2023 to DKK 391m. The development covers a growth of 12% in local currencies, where especially the decline in Swedish and Norwegian currency has negatively affected revenue. However, the underlying activity has more than lived up to our expectations with many new customers and a positive effect of the implemented price increases.
In Q1 2023, operating profit (EBITDA) increased to DKK 39m, corresponding to an EBITDA margin of 10%. Thereby, we reached an important milestone, and we continue to see good opportunities to improve earnings through further efficiency improvements. In Q1 2023, efficiency was lifted by 5 percentage points to 67% up from 62% in Q1 2022.
Progress across the business
Columbus’ service revenue continues to drive growth with a revenue share of 96% in Q1 2023, and the progress was delivered across the business. At country level, Denmark was leading the progress with a revenue increase of 23% to DKK 80m, but the rest of the Nordic region as well as the UK and US also showed progress. The strategic business areas: Digital Commerce, Data & Analytics and Customer Experience & Engagement all delivered growth rates above 25%.
See the revenue split on page 5 in the attached quarterly report for Q1 2023
Outlook for 2023 maintained
Based on the development in Q1 2023 and our strong pipeline and order backlog, we maintain our expectations for 2023 with:
- Revenue of DKK 1,550m – 1,600m, corresponding to an organic growth of 8-12% (12-15% in local currencies)
- EBITDA of DKK 119m – 139m, corresponding to an EBITDA margin of 7.4% - 9.0%
Key figures for Q1 2023
DKK m |
Q1 2023 |
Q1 2022 |
Development |
Revenue |
390.5 |
363.8 |
7% |
EBITDA |
39.2 |
29.5 |
33% |
EBITDA-margin |
10.0% |
8.1% |
+2 pct point |
Efficiency |
67% |
62% |
+5 pct point |
Avg. Number of full-time employees |
1,530 |
1,507 |
2% |
Kontakter
Camilla GrønnegaardColumbus
Tlf:+45 29 69 05 55cgr@columbusglobal.comFølg pressemeddelelser fra Columbus Global
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Columbus surpassed its organic growth expectations in 2023, delivering growth of 11%, and 15% adjusted for currency and acquisition. The growth is expected to continue. The Company has set new goals for the future, aiming to continuously grow the top line by 10% annually and improve profitability to an EBITDA margin of 15% by the end of 2026.
New analysis of Columbus’ financial results for Q3 2023 and new strategy; New Heights4.12.2023 14:22:29 CET | Nyhed
The stock analysis firm, Aktieinfo, has just published an analysis of Columbus’ results for Q3 2023 and the newly published strategy - New Heights. The analysis concludes, among other things, that: "After ten consecutive quarters of growth and maintaining guidance for 2023 with organic growth expected to be between 8-12% and an EBITDA margin of 7.4-9.0%, Columbus concludes the strategic plan Focus23. All goals have been achieved. Now, new ambitious yet achievable goals are set for the period 2024-26, anticipating an annual average organic growth of 10% and a significant improvement in the EBITDA margin to 15% by 2026. Columbus is thus taking a step towards 'New Heights' for revenue, earnings, and stock prices." The analysis can we found here (in Danish): https://ir.columbusglobal.com/static-files/7dc8b8dd-b686-4a70-8dc9-5b93f513aaa5
Columbus makes offer to acquire UK-based e-commerce consultancy30.11.2023 09:58:12 CET | Pressemeddelelse
Columbus A/S has submitted a conditional offer to acquire Endless Gain Ltd, a leading conversion rate optimization consultancy (CRO) focused on enhancing the digital customer experience for the UK retail industry
Strong Q3 Interim Report, new ambitious growth targets for 2024-2026 and new focus on Life Science15.11.2023 09:18:19 CET | Pressemeddelelse
In the third quarter of 2023, Columbus once again delivered impressive organic top-line growth of 15% (excluding acquisitions and currency), and the increase in operating profit (EBITDA) was as much as 28%. Columbus has created a solid foundation for the upcoming strategy period – New Heights – which in particular will focus on boosting profitability with an EBITDA margin of 15% by the end of 2026. Columbus expects 10% compounded annual growth in 2024 – 2026.
New analysis of Columbus’ financial result for Q2 2023 published by Aktieinfo31.8.2023 12:16:10 CEST | Pressemeddelelse
The analysis concludes, among other things, that: Columbus delivers what is promised. Growth adjusted for acquisition and currency was achieved with 16% in the second quarter (19% adjusted for currency and including acquisitions) and 14% in the first half of the year. In the second quarter, Columbus managed to invoice 70% of the consultants' hours. This testifies increased efficiency, which is one of the goals of the Focus23 strategy. With the execution of the Focus23 strategy, Columbus appears stringent and focused on servicing the core customer group. The analysis can we found here (in Danish): https://ir.columbusglobal.com/static-files/96127943-4e58-4e34-97be-3790aa0f0a06
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