Unterföhring/Munich, May 30, 2018. KPS AG (WKN: A1A6V4 / ISIN: DE000A1A6V48), Europe’s leading management consultancy for business transformation and process optimization in retail, increased its sales by 6.7% from EUR 82.8 million in the first half of 2016/2017 to EUR 88.4 million in the first half of 2017/2018. Earnings before interest and taxes fell to EUR 7.5 million compared with EUR 12.5 million in the previous year due to M&A-related write-downs, higher personnel costs and the fact that the first quarter fell short of expectations.
Besides acquisitions, the significant sales growth is due in large part to the acquisition of transformation projects with well-known customers from the retail and consumer goods industries. KPS is consistently pursuing its internationalization strategy with the strategic acquisitions of Saphira Consulting A/S in Denmark, ICE Consultants Europe SL in Spain, Infront Consulting & Management GmbH in Germany and Envoy Digital Limited in the UK in the year under review and the previous year. These were the main reasons for the 19.7% disproportionate increase in personnel expenses and depreciation and amortization of EUR 1.5 million, which had a significant negative impact on earnings. This has led to a change in the profit forecast for the full year 2017/2018. Earnings in the second quarter increased significantly compared to the first quarter, underlining the traditional upward trend throughout the year.
“Earnings in the first half of the year were significantly impacted by the consequences of the acquisitions. Through these investments, we have significantly improved our position for future growth and are consistently pursuing our internationalization strategy. For the current fiscal year, the effects of M&A-related write-downs and higher personnel costs mean that we have to adjust our earnings forecast. However, the increasing integration of our acquisitions promises significant growth potential, which will also have a positive effect on earnings in the future,” explains Leonardo Musso, Member of the Executive Board of KPS AG.
The Executive Board and management of KPS AG confirm the sales forecast for fiscal year 2017/2018 of EUR 160-170 million and have adjusted the earnings forecast from originally EUR 23-26 million to EUR 16–20 million. This includes the sales contributions of ICE Consultants Europe SL, Barcelona, Spain, acquired on October 2, 2017, as well as Infront Consulting & Management GmbH, Hamburg, Germany, and Envoy Digital Limited, London, UK, acquired in early 2018. The Supervisory Board and Executive Board of KPS AG continue to pursue their strategy of internationalization.
The detailed report for the first half of 2017/2018 is now available for download at www.kps.com.
May 30, 2018