Qt Group Plc, stock exchange release, April 24, 2025 at 8.00 am EEST
This release is a summary of Qt Group Plc's Interim Statement for January-March 2025. The complete report is attached to this release as a PDF file, and it is also available on the company's website at www.qt.io/investors.
First quarter 2025: Challenging operating environment slowed down net sales growth
January-March 2025
- Net sales increased 4.8 percent to EUR 47.2 million (EUR 45.1 million). The effect of exchange rates on the comparison period's net sales was EUR 0.6 million, and at comparable exchange rates, net sales increased by 3.4 percent.
- Operating profit (EBITA) was EUR 8.5 million (EUR 11.0 million) or 17.9 percent (24.3%) of net sales.
- Operating profit (EBIT) was EUR 6.5 million (EUR 9.0 million) or 13.7 percent (19.9 %) of net sales.
- Earnings per share were EUR 0.20 (EUR 0.30).
The figures in brackets refer to the comparison period, i.e., the corresponding period in the previous year. The percentage of change in net sales at comparable exchange rates is calculated by translating the net sales from the comparison period of 2024 with the actual exchange rates of the reporting period of 2025 and by comparing the reported net sales in 2025 with the calculated 2024 net sales at comparable exchange rates.
Key figures
| EUR 1,000 | 1-3/2025 | 1-3/2024 | Change, % | 1-12/2024 |
| Net sales | 47,236 | 45,078 | 4.8% | 209,063 |
| Operating profit (EBITA) | 8,460 | 10,961 | -22.8% | 71,199 |
| EBITA, % | 17.9% | 24.3% | 34.1% | |
| Operating profit (EBIT) | 6,452 | 8,954 | -27.9% | 63,169 |
| EBIT, % | 13.7% | 19.9% | 30.2% | |
| Return on equity, % | 2.7% | 6.0% | 38.1% | |
| Return on investment, % | 3.4% | 6.9% | 43.4% | |
| Interest-bearing liabilities1 | 7,599 | 4,463 | 70.3% | 4,316 |
| Cash and cash equivalents1 | 80,570 | 34,436 | 134.0% | 64,861 |
| Net gearing, %1 | -39.8% | -23.1% | -33.9% | |
| Equity ratio, %1 | 82.3% | 71.6% | 81.6% | |
| Earnings per share (EPS), EUR | 0.20 | 0.30 | -34.8% | 2.26 |
| Diluted earnings per share, EUR | 0.20 | 0.30 | -34.6% | 2.26 |
| Personnel, on average | 878 | 797 | 10.1% | 834 |
1 At the end of period
Juha Varelius, President and CEO
Geopolitical tensions cause significant uncertainty to Qt Group's operating environment and global trade in general, which slowed down the company's net sales development during the first quarter. Net sales increased 3.4 percent at comparable exchange rates and was EUR 47.2 million. Weak economic situation and uncertain outlook increased companies' caution to start new product development projects or make additional investments in on-going projects. Quality assurance and testing business grew in line with our expectations.
Operating profit (EBITA) was EUR 8.5 million or 17.9 percent of net sales in January-March 2025. Operating profit development was burdened by weaker than estimated net sales growth. The company continued long-term strategic investments as planned, and in January-March 2025 personnel increased especially with marketing and R&D experts in quality assurance and testing business. Total personnel were 888 at the end of the quarter.
Qt Group lowers its net sales outlook for 2025 due to significant uncertainty caused by geopolitical risks. Possible tariffs and trade wars may, if realized, cause considerable harm to companies' willingness to invest and business commerce in the short and medium term at least. Despite the challenging market environment, the company's long term growth outlook is still very positive. The increase in the number of displays and devices is a significant growth driver to Qt development tools, while the growing use of AI in software development increases the need for quality assurance tools and test automation.
Outlook for 2025
Outlook for 2025 (issued on April 23, 2025):
We estimate that our full-year net sales for 2025 will increase by 10-20 percent year-on-year at comparable exchange rates and that our operating profit margin (EBITA %) will be 30-40 percent in 2025.
News conference
Qt Group will organize an English-language news conference on April 24, 2025, at 1:00 - 2:00 pm EEST in Helsinki, Finland, and as a live webcast at www.qt.io/investors. CEO Juha Varelius and CFO Jouni Lintunen will be presenting the results.
Analysts and investors can participate in the news conference in person or via conference call at https://palvelu.flik.fi/teleconference/?id=50051503.
Further information:
President and CEO Juha Varelius, tel. +358 9 8861 8040
Distribution:
Nasdaq Helsinki
Key media
www.qt.io
