Ad hoc announcement pursuant to Art. 53 LR
In a challenging environment, CREALOGIX is back in the black with a positive operating result in the first half of the 2022/2023 financial year. Sales increased by 1.1%, or 6.8% in local currencies, on an adjusted comparison level and in Swiss francs - excluding the sold, non-strategic Swiss Learning Hub AG.
The measures introduced in the previous financial year, and the sale of the Digital Learning business led to an EBITDA of CHF 8.5 million. Without the sales effect of the Swiss Learning Hub AG, the EBITDA amounted to CHF 1.0 million. When preparing the half-year results, CREALOGIX decided to remove the Digital Learning stake from its books in its entirety and not just 67%. The complete deconsolidation of the Swiss Learning Hub AG meant an improved result compared to the provisional figures in the announcement on 24 January 2023.
Implemented measures are showing their first results
As announced, the build-out of the development bank platform in the first half of the year was successfully concluded. This removed the one-off investment for the setup of the new business area from the previous years. Furthermore, a long-term development contract was concluded with the development banks.
A bundle of measures led to cost savings and efficiency increases. The solution and product portfolio was purposefully consolidated on the core business. Thanks to this focus, a consistent expenditure budget was possible and profitability could be improved.
Slight growth and operational gain
Total sales in the first half of 2022/2023 came in at CHF 42.3 million compared with the adjusted sales of CHF 41.8 million in the same period of the previous year, representing an increase of CHF 0.5 million.
Despite inflation and an uncertain overall economic situation, EBITDA increased from CHF -3.8 million in the same period last year to CHF 8.5 million or CHF 1.0 million excluding the sales effect of the Swiss Learning Hub AG thanks to cost saving measures.
The resulting net profit of CHF 3.9 million, in which goodwill from past acquisitions is constantly amortised in accordance with conservative accounting practices, and research and development expenses are charged directly to the income statement, improved the equity ratio to 29.3%. Free cash flow has now improved significantly to CHF -2.8 million (previous year CHF -15.4 million).
Continuation of the positive development
CREALOGIX is building on the foundation laid in the first half of 2022/2023 and continues to pursue its chosen path with focus on profitability. The first phase of implementing cost-cutting measures and increasing efficiency was successfully implemented in 2022. 2023 will see further focus in the area of the product and solution portfolio. CREALOGIX expects a further improvement in EBITDA in the full-year 2022/2023 figures. On an adjusted comparative level (deconsolidation of the Swiss Learning Hub AG), CREALOGIX expects slightly lower sales.
You can download the full 2022/2023 half-year report here.