Press release – H1 2019: revenue down 2.6%, recurring revenue up 19%

Groenlo, the Netherlands, 25 July 2019, 18.15

Highlights

  • Revenue totalled €94.2 million in the first half of 2019, down 2.6% on the same period of 2018
    • The Healthcare, Security Management and Identification Systems business units all showed good performance
    • The Livestock Management business unit saw revenue drop compared with the exceptionally strong first half of 2018 and remained, as expected, on a par with the level of the second half of 2018
    • At the Retail business unit, revenue was down on the first half of 2018
  • Recurring revenue rose by 19% and now represents 23% of total revenue
  • Operating profit was down 19% to €8.1 million (first half of 2018: €10.0 million) due to ongoing investments in the organisation, especially in recruiting new staff for product development and marketing & sales
  • Net profit came in at €6.7 million, compared to €8.8 million in the first half of 2018
  • Nedap maintains the expectation that revenue for the whole of 2019 will be up on 2018

“In the first half of 2019, virtually all business units showed healthy development,” explains Ruben Wegman, CEO of Nedap. “Healthcare managed to sustain its robust growth. At Security Management and Identification Systems, investments made in recent years have translated into a stronger market position and growing revenue. Revenue at Livestock Management stabilised as expected at the level of the second half of 2018, but this is, however, a drop on the exceptionally strong first half of 2018. Due to challenging market conditions in the retail sector, willingness to invest in conventional anti-shoplifting systems remains low. Growth in recurring revenue from the Nedap !D Cloud proposition is not yet up to the level needed to absorb the drop in revenue from anti-shoplifting systems. Market interest in Nedap’s RFID solutions, however, continues to increase, and a growing number of leading customers has meanwhile opted for !D Cloud. Nedap continues to be committed to and invest in the further development of the organisation. Over the first half of 2019, we have managed to attract a large number of highly qualified employees, whom we need to be able to make the most of our propositions’ potential.”

Download the complete press release here: Press-release-Nedap-figures-H1-2019