Affecto continues to grow profitably at a faster pace than the market

Affecto’s net sales grew by 17% in the third quarter to 27.9 million euros (Q3 2020: 23.9 million €). EBIT grew to 2.1 million euros (1.1 million €). The quarter was better than the corresponding quarter during the two previous years regarding both net sales and EBIT.

Net sales from the beginning of the year were 90.6 million euros (78.0 million €); an increase of 16% compared to the corresponding period last year. EBIT for the three first quarters has grown significantly: 5.4 million euros when last year the corresponding figure was 0.9 million euros.

”Our performance in the third quarter was good. We have succeeded in our main goal for this year, i.e. in improving our profitability. In our main business, we have also managed to grow faster than the market in all Nordic countries,” says Affecto’s CEO Pekka Eloholma.

Sweden has seen the highest growth rate (71%), even though there the result is still negative due to the ongoing growth-oriented development actions. All other Affecto countries – Finland, Norway, Denmark and the Baltics – have grown profitably.

“In Sweden we have improved our position and visibility on the market as a provider of Business Intelligence solutions. Now the subsidiary has grown large enough to make a profit and focus on improving profitability,” says Eloholma.

The good result is rooted in long-term, persistent work to improve Affecto’s offering to meet customer needs. Today, Affecto is known on the BI market as a forerunner; this has made to possible to deepen customer relationships into partnerships. As a consequence, projects have grown in size.

One example of a customer partnership is the recent agreement with Norway Post, covering two years and including an option on two more years. The agreement encompasses application management services and further development of Norway Post’s BI system, which provides timely information on volumes and time consumption in the different phases of production and distribution. The deal is estimated to be worth approximately 0.9–1.8 million euros.

Affecto’s order backlog on the 30th September was 45.2 million euros, which is 4% higher than in 2010 (43.6 million €). The uncertainty about general economic developments has hardly affected the company’s daily work. Affecto still expects to meet its targets for 2011: at least doubling its operating profit of 2010 and growing at least 10%.

The whole group focuses on improving profitability and growing faster than the market.

”We believe the BI market will continue to grow next year as well. However, its focus may change: when the economic outlook becomes bleaker, organisations are likely to concentrate on measuring and managing performance, just like they did in the previous downturn,” states Eloholma.

For further information:

Pekka Eloholma, CEO, Affecto

Tel. +358 205 777 737, e-mail pekka.eloholma(a)affecto.com