Inside information, profit warning: Sitowise lowers its full year adjusted EBITA margin (%) guidance while maintaining net sales guidance, and provides preliminary key figures for the third quarter
Other stock releases - 19.10.2023 at 14.00 UTC+2
Sitowise Group Plc Stock Exchange Release 19 October 2023 at 2.00 p.m. (EEST)
Sitowise lowers its full year adjusted EBITA margin (%) guidance due to weakened market outlook especially in the Buildings business area and the weaker than expected performance in the Sweden business area in the third quarter. Sitowise keeps its full year 2023 net sales guidance unchanged.
New guidance:
Sitowise Group estimates that its net sales in year 2023 in euros will increase compared to 2022, and that its adjusted EBITA margin (%) for the whole year 2023 will be below year-to-date adjusted EBITA margin level of 9.2%, but above 8%.
Previous guidance (issued on 28 February and repeated on 16 August)
Sitowise Group estimates that its net sales in year 2023 in euros will increase compared to 2022, and that its adjusted EBITA margin (%) will be broadly at the same level as the adjusted EBITA margin of 2022.
Background for revising guidance
Sitowise's Infra and Digital Solutions business areas continued their strong growth in the third quarter 2023, but on the Group level net sales growth halted due to the Buildings and Sweden business areas performing under expectations. The development in Buildings was adversely impacted by the further deterioration of the underlying Finnish construction market. The Sweden business area, on the other hand, suffered from internal headwinds on top of slight market softening.
The outlook for the rest of the year in the Buildings business area is weak, and we expect the challenges to continue also in 2024. In other business areas we see both areas of stronger and weaker demand, but the weaker economic outlooks in both Finland and Sweden slow down growth. The expected go-lives of new ERP and CRM systems in Finland in the last quarter of 2023 bring additional pressure to the utilization rate.
Preliminary key figures for July-September 2023
| M€ | Q3/2023 prel. | Q3/2022 | Q1-Q3/2023 prel. | Q1-Q3/2022 |
| Net sales | 45.6 | 45.9 | 158.1 | 146.1 |
| Adj. EBITA | 3.5 | 4.9 | 14.6 | 15.1 |
| margin (%) | 7.6% | 10.7% | 9.2% | 10.3% |
Sitowise will publish its Interim Report for January-September 2023 on Thursday, 2 November 2023 at 8.30am (EEST). There will be a webcast for analysts, media and investors at noon (EEST) on the same day.
Sitowise Group Plc
Board of Directors
Additional information:
Hanna Masala, CFO, Sitowise Group Plc, tel. +358 40 558 1323
Distribution:
Nasdaq Helsinki
Major media
www.sitowise.com
About Sitowise
Sitowise is a Nordic expert in the built environment with strong focus on digitality. We provide design and consulting knowhow to enable more sustainable and smarter urban development as well as smooth transportation. Sitowise offers services related to real estate and buildings, infrastructure, and digital solutions both in Finland and in Sweden. Global megatrends drive huge changes that require a re-evaluation of the smartness in the built environment – therefore we have set our vision to be Redefining Smartness in Cities. The Group's net sales were EUR 204 million in 2022 and the company employs more than 2,200 experts. Sitowise Group Plc is listed on Nasdaq Helsinki under the trading symbol SITOWS.