SNP revenue in fiscal year 2020 roughly at previous year's level

Heiner Diefenbach
| 4 min read
  • - 2020 consolidated revenue of € 143.8 million slightly below previous year (2019: € 145.2 million)
  • - New corporate strategy successfully implemented
  • - Expansion of the global partner network
  • - Guidance for 2021: € 160 - 180 million in revenue and 5 - 8 % EBIT margin
  • - Preliminary figures for Q1 2021 published

 

Heidelberg, April 21, 2021 – SNP Schneider-Neureither & Partner SE, a world-leading provider of solutions for digital transformation processes and software-based data migrations, published today its audited annual financial statements for fiscal year 2020. Along with their publication, SNP also confirmed the preliminary figures for the past fiscal year published on January 15, 2021. Revenue fell slightly by 1 % from € 145.2 million to € 143.8 million. Of this, € 49.9 million was attributable to the software segment and € 93.9 million to the services segment. As a result of further investments in growth, particularly in the expansion of the workforce, the operating result (EBIT) fell from € 3.4 million in the previous year to € 0.8 million in 2020. This corresponds to an EBIT margin of 0.6 %, compared to 2.4 % in the previous year.

"For the economy, the past year was extraordinary due to COVID-19. And we at SNP also had to process the death of our founder and CEO Dr. Andreas Schneider-Neureither. Taking this into account, we are satisfied with the figures for 2020," said Prof. Dr. Heiner Diefenbach, CFO of SNP SE. "On the other hand, we are much more positive about the outlook for the future. Our new corporate strategy is being very well received by both our customers and our partners. We are ideally positioned in the market and are cautiously optimistic for the current fiscal year."

SNP SE has updated its corporate strategy in three areas. The IT company is positioning itself more focused than ever. It has evolved from a business transformation company to a specialist for data transformation in the SAP world. This message is clearly expressed in the slogan "The Data Transformation Company". In addition, SNP has adapted its business model - moving away from a purely service-oriented to a software- and solution-oriented model. And the new go-to-market strategy will also support further growth: Adding to direct sales, SNP is increasingly building on sales via a global partner network of IT consultancies, system integrators, management consultancies and hyperscalers.

This allowed the company to successfully expand its global partner network in 2020. Last year alone, around 20 new partnerships were added – including Scheer, all for one Group, Wipro, Abacus, Microsoft, Cloud4C, Accely, Fujitsu, MHP and Swisscom, among others. Overall, SNP already generated € 26.2 million or 18 % of its revenue from partners. Order entry even grew disproportionately by 26 % to € 47.6 million.

"We have the largest international partner network for data transformation in the SAP landscape. This enables us to use our platform for data transformation, CrystalBridge, everywhere in the world with our customers and to constantly improve it with customer insights," explains SNP CEO Michael Eberhardt.

SNP's business developed very differently in the six regions: Revenue in the largest region Central Europe (CEU) fell by 6 % to € 78.4 million and in the JAPAC region by 20 % to € 5.3 million. In all other regions, however, the previous year's results were exceeded: Revenue in the Eastern Europe, Middle East and Africa region rose by 7 % to € 22.6 million and in the Latin America region by 14 % to € 15.3 million. Revenue in the USA also increased by 7 % to € 14.6 million, while in the UK & Ireland revenue went up 1 % to € 7.6 million.

The development towards a software- and solution-oriented business model is particularly evident in the performance of the Software segment, which grew by 4.8 % from € 47.6 million to € 49.9 million. The software share of the total revenue amounts to 34.7 % or a plus of 1.9 percentage points. By contrast, revenue in the Service segment fell by 3.8 % from € 97.6 million to € 93.9 million. Service revenue accounted for 65.3 % of the total revenue.

Order entry in fiscal year 2020 went back by 8.4 % from € 201.3 million to € 184.4 million. At the same time the order backlog increased by 19.5 % and grew from € 92.7 million to € 110.8 million. These figures represent a good starting point for further growth. In the Software segment, orders on hand rose by 26.4 % and in the Service segment by 11.4 %.

On the capital side, SNP is very well positioned. Compared to the end of the previous year, equity increased by € 20.8 million to € 87.7 million, mainly due to a capital increase carried out in July 2020. This improved the equity ratio by 3.2 percentage points from 39.2 % to 42.4 %.

In fiscal year 2020, SNP also invested in its workforce. The company grew by 98 employees. As of December 31, 2020, SNP thus had a total of 1,463 employees worldwide.

SNP's management is positive about the outlook for fiscal year 2021 and expects consolidated revenue of between € 160 million and € 180 million. Both software and service revenues are expected to increase significantly. In addition, the company expects an EBIT margin of between 5 and 8 %.

Preliminary figures for Q1 2021

SNP also published its preliminary figures for the first quarter of 2021 today, with a total revenue of € 33.1 million, down from € 34.4 million in a quarter last year, that was not yet influenced by COVID-19. This corresponds to a decline of 3.8 %. Thanks to various efficiency measures, EBIT improved by about a third from minus € 3.9 million to minus € 2.6 million. SNP will publish the full figures for the first quarter of 2021 on April 29.

Contact person at SNP:

Nicole Huber
Executive Vice President Corporate Development
Tel.: +49 6221 6425-920
E-mail: nicole.huber@snpgroup.com

 Christoph Marx
Global Head of lnvestor Relations
Tel.: +49 6221 6425-172
E-mail: christoph.marx@snpgroup.com

 

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