Atea reported exceptionally strong organic growth, higher EBIT, and very positive cash flow from operations in the third quarter of 2022.
Rapid growth across business
Atea’s gross sales in Q3 2022 were NOK 10.4 billion, up 23% from last year. Currency differences had a negative impact on reported growth, as sales in foreign currencies were translated into a stronger Norwegian krone. Organic sales growth in constant currency was 27%.
IFRS revenue in the third quarter was NOK 8.1 billion, an increase of 24% from last year. Atea reported double-digit revenue growth across each of its geographies in the Nordic and Baltic countries, and across all of its business lines. Hardware revenue grew by 28%, software revenue grew by 21% and services revenue grew by 14%.
Based on strong revenue growth, Atea reported record high operating and net profit in the third quarter. EBIT in Q3 2022 grew by 9% from last year to NOK 284 million. Net profit after tax was NOK 196 million, compared with NOK 186 million last year.
“The market for IT infrastructure is currently very strong, but Atea’s sales growth this quarter has been outstanding. Our company is capturing market share in all geographies,” commented Atea CEO Steinar Sønsteby. “Atea has a unique competitive position as a full-service IT infrastructure partner, enabling its customers to successfully pursue their digital transformation initiatives and manage the increasing complexity of their IT environments. This competitive position has never been stronger or more important for customers.”
Very positive cash flow
Cash flow from operations in Q3 2022 was positive NOK 655 million (inflow), compared with negative NOK 503 million (outflow) last year. Atea’s strong cash flow performance in Q3 2022 was driven by higher profits and a major reduction in inventory and other working capital items.
As announced in the last earnings report, Atea had built inventory in previous quarters to secure customer deliveries during a period of supply constraints in the electronics industry. As supply constraints have since eased, Atea has taken active measures to reduce inventory in the third quarter. This process of inventory reduction resulted in very positive cash flow in the third quarter and will continue in the coming months.
“Supply chain constraints have eased greatly since the start of 2022, and delivery times from vendors have substantially normalized in most hardware categories,” commented Atea CEO Steinar Sønsteby. “As a result, we are able to reduce our inventory levels while still ensuring deliveries to customers.”
The interim report and presentation are available at:
https://www.atea.com/investors/financial-reports/
A webcast of management's presentation of the financial results is available at:
https://www.atea.com/investors/financial-reports/2022/webcast-q3-22/
For further information, please contact:
Steinar Sønsteby, CEO Atea ASA, mobile (+47) 930 55 655
Robert Giori, CFO Atea ASA, mobile (+47) 934 09 188
About Atea
Atea is the leading supplier of IT infrastructure in the Nordic and Baltic regions. Atea is present in 85 cities with nearly 8,000 employees in Norway, Sweden, Denmark, Finland, Lithuania, Latvia and Estonia. Atea delivers hardware and software from leading global vendors, and provides consulting and technical services to support its customers with the design, implementation and operation of their IT environments. Atea had gross sales of approximately NOK 41 billion (EUR 4.1 billion) in 2021 and is listed on Oslo Stock Exchange. www.atea.com