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Comarch’s Financial Results for the Four Quarters of 2022

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Comarch’s Financial Results for the Four Quarters of 2022

The Comarch Group generated over PLN 1.86b in revenue from the sales of products and services during the twelve months of 2022. This is over PLN 230m, i.e. by PLN 14.2 per cent more than in the previous year. This performance resulted in a net profit attributable to equity holders of the parent of PLN 109.1m, down by PLN 13.9m from a year ago. The operating profit was down by PLN 39.3m amounting to PLN 147.9m. EBITDA amounted to PLN 241.8m, or PLN 37.5m less than in the same period of 2021. During the period, the operating profitability stood at +8%, with the net profitability amounting to +5.9%.

The Comarch Group increased its revenues thanks to a sales growth both in foreign markets, mainly in the telecommunications, industrial and financial and banking sectors, and business development in Poland, where sales of ERP class solutions in particular grew dynamically. The total foreign sales of the entire Group amounted to PLN 1.08b, representing 58% of the total business.
The sales revenue in Q4 2022 alone reached PLN 544.4m, increasing year-on-year by PLN 24.5m. The operating profit amounted to PLN 16.5m and was down by PLN 47.0m, or 74% less than in Q4 2021. In contrast, the net profit attributable to equity holders of the parent reached PLN 36.4m, down by 4.5%. The Group generated EBITDA of PLN 40.3m in the fourth quarter of 2021, down by PLN 50.3m, or 55.5% less  than in the equivalent period of the previous year. The value of revenue and the operating profit generated in Q4 2022 was heavily affected by the appreciation of PLN against foreign currencies in the period and the related foreign exchange losses.

Sales to telecommunications companies accounted for the largest share of revenue in 2022, growing by PN 40.6m to PLN 446.6m. The highest increase of 26.6% was recorded in sales to the industrial companies. Customers in this sector purchased systems and services amounting to PLN 229.9m. Sales of solutions to  SMEs in Poland grew by almost 23%.  Their value amounted to PLN 294m, or PLN 54.5m more than in 2021. In contrast, the sales of ERP solutions in the DACH market increased by 4.9%. Sales of solutions for the public sector recorded a large increase of almost 20%. Contracts with public administration institutions generated revenue of PLN 159.9m, an increase of PLN 26m compared to the previous year. Comarch also improved its sales to customers in the retail and service sector. Its amount increased by nearly PLN 10.7m to PLN 256.5m. The sales of solutions to customers in the finance and banking sector also grew. Those institutions bought products and services worth PLN 261.7m, which represents an increase of PLN 35.4m, i.e. by 15.6%, compared to the equivalent period of last year. In contrast, there was a 7% drop in the sales of products to healthcare institutions.

“Despite major turmoil in the political and economic environment and in the financial markets, Comarch maintains its strong position in the IT industry. We are developing sales of solutions and services in Western Europe and North America, and we are looking for more markets, keeping a close eye on the ASEAN region in particular. We are also expanding our market offer, especially in terms of financial services, telemedicine and e-commerce, as well as investing in solutions based on Comarch Cloud technology,” says Konrad Tarański, Vice President of the Management Board and CFO at Comarch. “The strategy of Comarch invariably assumes a long-term development of the Company, the pillars of which include the diversification of Comarch's offer with regard to products, industries and regions, as well as significant expenditure on research and development activities. At the same time, operations are being adjusted to the changing global business environment. The Group's very good financial performance disclosed over years proves the effectiveness of such management,” adds Konrad Tarański.

In 2022, the Comarch Group increased its headcount; as of 31 December 2022, the Group employed 6,871 people, 148 more than as at 31 December 2021.