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Nepa publishes preliminary results for Q2 2023
July 31, 2023
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Nepa anticipates that net sales for the second quarter of 2023 will amount to approximately SEK 75 million and EBIT to approximately SEK -10 million. The decrease in earnings is mainly attributed to a continued weak ad hoc revenue development and an excessive cost structure. Additional cost-saving measures have been implemented during the quarter to achieve the targeted annualized cost base of SEK 220 million by Q4 2023. Excluding restructuring costs, the adjusted EBIT is expected to be approximately SEK -3 million. Nepa will after these measures meet the targeted run rate by Q4 2023 but continue to take measures to ensure profitable operations.
Although ad hoc revenue has continued to decline since its peak in H1 2022, subscription revenue and ARR (Annual Recurring Revenue) have remained consistent. Given the prevailing market conditions, Nepa has during the quarter implemented supplementary measures to achieve the targeted cost structure. The company incurred restructuring costs of circa SEK 7 million in the quarter. Nepa remains actively engaged in restoring profitability and continues during H2 2023 to take additional measures, including redundancies, to achieve this goal.
The Board’s search process for a permanent CEO is progressing according to plan, and further announcements will be made in due course.
All figures in this press release are preliminary and unaudited. The interim report for Q2 2023 will be published at 08:00 CET on August 18, 2023.
