Revenue growth, costs under pressure from inflationary factors
In the three quarters of 2022, the Atende Group posted a year-on-year increase in consolidated revenue by 11% to PLN 143.1 million. However, due to external factors, gross profit on sales is similar to that reported in the previous year (PLN 34.3 million, down 3% y/y), operating profit deteriorated and EBITDA decreased by 32% to PLN 3.8 million. In the 3rd quarter of 2022 alone, the Atende Group's sales revenues were similar to those earned in the corresponding period of the previous year (PLN 40.3 million vs PLN 40.6 million), and gross profit on sales stood at PLN 9.0 million, down 14% y/y.
The performance after three quarters is largely attributable to an increase in operating costs, including increased salary costs, rising inflation rates and a significant appreciation of USD against PLN, with a significant portion of supplies being settled in USD. Additionally, delays in equipment deliveries continue to be a challenge in the integrator market. Nevertheless, all reported sectors delivered year-on-year increases in sales. This increase was mainly driven by the public sector (up by PLN 5.0 million y/y) and the industry, trade and services sector (up by PLN 4.9 million y/y). The Management Board also maintains its internal guidance for the full-year performance.
Atende Group's performance in the third quarter was delivered under pressure from increased operating costs and delays in product deliveries. In anticipation of these threats, we implemented a number of measures over the year to diversify the portfolio of our own products, as well as those offered by our technology partners. These measures, coupled with the prospect of eliminating bottlenecks in the supply chains of key manufacturers, are factors that give us an optimistic view of the performance for 2022 as a whole – explains Marcin Petrykowski, President of the Management Board of Atende.
The combined impact of the Atende Group’s subsidiaries on the consolidated profits was positive. Of these, OmniChip, which designs electronic devices and integrated circuits for third-party semiconductor companies, is particularly noteworthy. In addition to carrying out design orders, the company continued to work on the spatial light modulator being developed as part of the REALHOLO project, funded by the EU Horizon 2020 research and innovation programme, and on the selection of proprietary IP (Intellectual Property) technology in the semiconductor area.
Key to the implementation of the Atende Next strategy is the continued diversification of our business based on solutions provided by global technology leaders. We have been intensively ramping up our customer partnerships in the area of cloud services in close collaboration with key cloud technology providers. Above all, we are focused on developing our own software solutions, which we believe can be the foundation for companies' digital transformation in the areas of cyber security or energy management – concludes Marcin Petrykowski.