KPS continues successful growth in the 3rd quarter of 2016/2017
Unterföhring/Munich, 11 August 2017 – KPS AG successfully continued its growth in the 3rd quarter of 2016/2017. As a result of the ongoing internationalization of its business model, Group sales increased by 3.4 percent compared to the same quarter of the previous year to 39.7 million euros (Q3 2015/2016: 38.4 million euros). Despite greater investments in workforce expansion, among other things, the Group EBIT at 5.9 million euros was close to the level of the prior-year period (Q3 2015/2016: 6.0 million euros). Earnings after taxes increased by 3.0 percent to 5.9 million euros (Q3 2015/2016: 5.7 million euros). The Executive Board confirms the forecast for the current business year 2016/2017.
KPS AG (WKN: A1A6V4 / ISIN: DE000A1A6V48), Europe’s leading management consulting firm for business transformation and process implementation in the retail sector, recorded solid growth in its core business for the 3rd quarter of 2016/2017 (1 April 2017 to 30 June 2017) in line with expectations. Based on the strict implementation of the internationalization strategy, KPS generated growth momentum in particular in the US market.
“Right from the start, our subsidiary KPS Consulting Inc. has been performing well in one of the most important software, technology, and digital markets of all – the USA. This shows that high-quality process optimization and IT infrastructure consulting services are no longer the exclusive domain of the Silicon Valley, but now come from Unterföhring too. And we are proud of this,” says Leonardo Musso, Member of the KPS AG Executive Board.
In the 3rd quarter of 2016/2017, sales and earnings increased in line with expectations. On the basis of unaudited IFRS Group figures sales went up by 3.4 percent to 39.7 million euros (Q3 2015/2016: 38.4 million euros). Due to the workforce expansion to drive further company growth, the operating result (EBIT) of -1.0 percent was close to the level of the prior-year at 5.9 million euros (Q3 2015/2016: 6.0 million euros). The EBIT margin amounted to 14.9 percent (Q3 2015/2016: 15.6 percent). Overall, earnings after tax increased in the reporting period by 3.0 percent to 5.9 million euros (Q3 2015/2016: 5.7 million euros). Earnings per share increased almost to the same degree as sales by 3.0 percent to 0.16 euros (Q3 2015/2016: 0.15 euros).
The Executive Board and management of KPS AG once again confirm the forecast for the business year 2016/2017 with stable and profitable growth to Group sales of 160 million euros and EBIT of 25.0 million euros. This corresponds to an increase in sales of around 10 percent and a rise in operating result of 12 percent. Alongside the increase in sales, KPS is focusing consistently on sustainable optimization of earnings margins. Continued implementation of the internationalization strategy is expected to generate additional growth stimuli. The successful entry to the US market gives management grounds for optimism with respect to further international projects.
Unterföhring, 11 August 2017
The Executive Board
KPS is Europe’s leading management consulting firm for business transformation and process implementation in the retail sector. The company offers end-to-end strategy and process consulting, with extensive implementation expertise in digital customer management, e-commerce and ERP. KPS customers profit from the vast project experience and deep sector knowledge of its consultants, enabling them to drive omnichannel and digital transformation projects to rapid success. With its proprietary Rapid Transformation® methodology, KPS has cut project turnaround times by up to 50 percent.
Founded in 2000, KPS employs about 800 consultants at its corporate headquarters in Munich with five additional locations throughout Germany and branch offices in Denmark, Austria, the Netherlands, Switzerland and the US. KPS plans to expand its market position in the retail and consumer goods sectors in the coming years through pioneering projects in all aspects of digital transformation.
Disclaimer: The press release contains forward-looking statements which are based on certain assumptions and estimates made by the company management of KPS AG. Even if the company management is of the opinion that these assumptions and estimates are appropriate, the actual future development and the actual future results may deviate substantially from these assumptions and estimates on account of a variety of different factors. These factors may include, for example, changes in the macroeconomic situation, exchange rates, interest rates, and changes in market development and changes in the competitive situation. KPS AG does not guarantee that the actual results achieved in future will be in accordance with the assumptions and estimates made in this press release and does not assume any liability in this respect.