Press release – Trading update Q1 2021

Key points
·       Q1-2021 revenue up with 2% compared to Q1-2020
·       Recurring revenue up 13% compared to previous year
·       Challenging component market

2021 first quarter revenue
Revenue in the first quarter of 2021 grew by 2% compared to the sound first quarter of 2020. The business units Healthcare, Identification Systems, Light Controls, Livestock Management and Staffing Solutions managed to grow their revenue compared to the same period last year. Revenue at the business units Retail and Security Management was down on last year. The recurring revenue in the first quarter was up 13% compared to the same period last year.

New strategic plan
The new strategic plan for the coming five years entitled ‘Step Up!’ was presented at the Capital Markets Day on 17 March 2021. The most important goal of this plan is to build and expand leading positions in various markets based on the current portfolio of propositions to accelerate the company’s revenue growth. Along with the plan, financial objectives towards 2025 were unveiled. These include a revenue that is developing towards annual high-single-digit autonomous growth and an operating (EBIT) margin that grows towards 15%.

Challenging component market
As global shortages of electronics components continued to worsen over the past few months, it is becoming increasingly challenging to guarantee the continuity of product supplies to our customers. We cannot rule out delays of deliveries to our customers over the coming months. In addition, this component shortage, together with rising transport prices, is leading to increasing upward pressure on the cost prices of our products.

Outlook
Nedap expects that developments in the various markets worldwide will continue to be driven by the COVID-19 pandemic. This, combined with the uncertainty in the supply chain, makes that it is too early in the year to make a reliable statement about how revenue is likely to develop over the year.

Read the full press release here: Press release – Trading update Q1