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Talenom Oyj
Quarterly Report • Apr 24, 2025
3297_rns_2025-04-24_c7b11d6e-b459-4c84-9b5e-583313f1161d.pdf
Quarterly Report
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Business Review Q1 2025
The separation of the Software business was completed, the Finnish business grew while profitability improved further
1 Jan. − 31 Mar. 2025 (unaudited)
Business Review Q1 2025:
The separation of the Software business was completed, the Finnish business grew while profitability improved further
January–March 2025 in brief
- Net sales EUR 35.7 million (34.1), growth 4.9% (8.8). Due to the income recognition principles of the Software business, net sales were EUR 1.5 million higher than in the comparison period. Comparable net sales growth was 0.5%.
- EBITDA EUR 10.7 million (9.5), 29.9% (27.9) of net sales
- Operating profit (EBIT) EUR 4.7 million (3.9), 13.1% (11.3) of net sales
- Net profit EUR 2.5 million (2.0)
- Earnings per share EUR 0.06 (0.04)
| Group | 1–3/2025 | 1–3/2024 | Change, % |
|---|---|---|---|
| Net sales, EUR 1,000 | 35,718 | 34,053 | 4.9% |
| Net sales growth, % | 4.9% | 8.8% | |
| EBITDA, EUR 1,000 | 10,669 | 9,486 | 12.5% |
| EBITDA of net sales, % | 29.9% | 27.9% | |
| Operating profit, EUR 1,000 | 4,673 | 3,855 | 21.2% |
| Operating profit of net sales, % | 13.1% | 11.3% | |
| Return on investment (ROI), % (rolling 12 months) | 8.1% | 6.0% | |
| Interest-bearing net liabilities, EUR 1,000 | 91,611 | 84,697 | 8.2% |
| Gearing ratio, % | 174% | 172% | |
| Equity ratio, % | 29.0% | 26.9% | |
| Net investments, EUR 1,000 | 4,413 | 8,039 | -45.1% |
| Liquid assets, EUR 1,000 | 9,021 | 12,314 | -26.7% |
| EPS, EUR | 0.06 | 0.04 | 23.1% |
| Weighted average number of shares during the period | 45,477,972 | 45,434,562 | 0.1% |
| Net profit, EUR 1,000 | 2,507 | 2,034 | 23.2% |
Key figures
Guidance for 2025 unchanged
Talenom estimates that 2025 net sales will be around EUR 130–140 million and EBITDA around EUR 36– 42 million.
CEO Otto-Pekka Huhtala
The Group's net sales in the first quarter were EUR 35.7 (34.1) million. The growth was 4.9% (8.8). We are now, for the first time, reporting the key figures for the business areas under the updated strategy, Software business and Accounting business. The net sales of the Accounting business were EUR 28.8 million and continuously billed Software business EUR 6.9 million. Due to the income recognition principles of the Software business, net sales were EUR 1.5 million higher than in the comparison period.
A more detailed description of the Software business can be found in the key business figures section of the review.
In Finland, the decline in transaction volumes of our customers has stopped. Thanks to successful new customer acquisition in 2024, Finland's comparable net sales increased by approximately 4.9% (0.1), while net sales still declined in the last quarter of 2024. We estimate that a turning point is at hand in the volumes and growth of the Finnish business.
Sweden's net sales decreased as a result of customer churn in 2024. In Sweden, efforts to turn net sales growth around have progressed, and this is our main priority in the near future. We saw the trend turning for the better in new sales and customer churn. ONE Talenom operating methods, processes and the introduction of our software are progressing systematically. We estimate that the combined effects of the measures will be reflected in financial performance towards the end of the year.
Spain's net sales remained at the level of the comparison period. New customer acquisition has progressed well. We have systematically focused on improving profitability by investing in acquiring recurring and profitable customers. As a result, one-off net sales have decreased while recurring net sales have increased, improving the conditions for profitability and growth in the future. The transition to einvoicing driven by legislation is the most significant trend driving future customer demand. We have built software capabilities to respond to market change. We also continued to roll out our proprietary software to our customers to facilitate their business and prepare them for the e-invoicing transition.
The Group's EBITDA was EUR 10.7 million (9.5) and operating profit was EUR 4.7 million (3.9). The Accounting business' EBITDA was EUR 5.3 million and the Software business' EBITDA adjusted for the income recognition principle was EUR 3.8 million. The change in the net sales recognition principle in the Software business, together with unallocated one-off items, has a net positive impact of approximately EUR 0.9 million compared to the reference period. Finland's excellent profitability impacted profitability positively, while the profitability of other countries remained low. Operating profit development was further hampered by increased depreciation. The level of investment in proprietary software decreased by approximately EUR 0.8 million compared to the reference period. The impact of the lower investment level is visible as improved cash flow.
Our outlook has brightened as the strategy update has progressed. We have put the updated strategy into practice, and we are already seeing clear positive signs. By focusing on our core businesses, we will achieve results faster. We move forward with two solid pillars, software and accounting services, leveraging our expertise in the market's digital transformation. Our vision is to be the most preferred partner in financial management.
Group's financial development in January-March 2025
Net sales increased by 4.9% to EUR 35.7 million (34.1). The Software business started as a separate business, and the basis for determining net sales changed at the same time. As of 1 January 2025, sales income from the Software business has been recognized separately based on software usage. Previously, according to the accounting principles, software charges were considered part of the monthly accounting service package, and sales income from software charges was recorded monthly, together with other sales income included in the accounting service package. Due to a change in accounting policy, net sales recognition was brought forward, which meant a one-off increase in net sales of approximately EUR 1.5 million for the first quarter. Comparable net sales growth was thus approximately EUR 0.2 million, or 0.5%.
Personnel costs amounted to EUR 19.7 million (20.0), representing 55.2% (58.8) of net sales. Other operating expenses, including materials and services, totalled EUR 5.4 million (5.0) or 15.1% (14.8) of net sales.
EBITDA increased by 12.5% to EUR 10.7 million (9.5) or 29.9% (27.9) of net sales. Most of the EBITDA improvement came from Finland. The development in Sweden slowed down the profitability improvement, with net sales remaining below the comparison period. Operating profit increased by 21.2% and amounted to EUR 4.7 million (3.9) or 13.1% (11.3) of net sales. The change in the net sales recognition principle in the Software business, together with unallocated one-off items, has a net positive impact of approximately EUR 0.9 million compared to the reference period, and the impact is visible both in EBITDA and operating profit.
Net profit grew by 23.2% to EUR 2.5 million (2.0). Net financial expenses stood at EUR 1.0 million (1.0).
The Group's comparable key figures
| Reported key figures | Comparable key figures | ||||||
|---|---|---|---|---|---|---|---|
| 1-3/2025 | 1-3/2024 | Change | 1-3/2025 | 1-3/2024 | Change | ||
| Net sales, EUR 1,000 | 35,718 | 34,053 | 4.9% | 34,218 | 34,053 | 0.5% | |
| Net sales growth, % | 4.9% | 8.8% | 0.5% | 8.8% | |||
| EBITDA, EUR 1,000 | 10,669 | 9,486 | 12.5% | 9,492 | 9,218 | 3.0% | |
| EBITDA of net sales, % | 29.9% | 27.9% | 27.7% | 27.1% | |||
| Operating profit, EUR 1,000 | 4,673 | 3,855 | 21.2% | 3,496 | 3,587 | -2.6% | |
| Operating profit of net sales, % | 13.1% | 11.3% | 10.2% | 10.5% |
The comparison key figures exclude a one-off increase of EUR 1.5 million in the reporting period's net sales due to a change in the net sales recognition policy. A EUR 0.3 million expense related to additional purchase prices from acquisitions in the reporting period and a EUR 0.3 million income recognition in the comparison period have also been deducted from EBITDA and operating profit.
Country-specific financial development
Finland
| 1–3/2025 | 1–3/2024 | Change, % | |
|---|---|---|---|
| Net sales, EUR 1,000 | 26,053 | 23,409 | 11.3% |
| Net sales growth, % | 11.3% | 0.1% | |
| EBITDA, EUR 1,000 | 11,283 | 9,297 | 21.4% |
| EBITDA of net sales, % | 43.3% | 39.7% | |
| Depreciation and amortisations, EUR 1,000 | -4,764 | -4,425 | 7.7% |
| Operating profit, EUR 1,000 | 6,519 | 4,872 | 33.8% |
| Operating profit of net sales, % | 25.0% | 20.8% |
January-March 2025
Net sales increased by 11.3% to EUR 26.1 million (23.4). In Finland, the decline in transaction volumes of our customers has stopped. Thanks to successful new customer acquisition in 2024, Finland's comparable net sales turned to growth. Comparable net sales increased by approximately 4.9% (0.1) thanks to successful new customer acquisition. Comparability was affected by the change in the net sales recognition principle in the Software business, which improved reported net sales by EUR 1.5 million.
EBITDA was EUR 11.3 million (9.3), representing 43.3% (39.7) of net sales. Profitability improved clearly due to net sales growth and efficiency measures.
Sweden
| 1–3/2025 | 1–3/2024 | Change, % | |
|---|---|---|---|
| Net sales, EUR 1,000 | 5,983 | 6,956 | -14.0% |
| Net sales growth, % | -14.0% | 3.4% | |
| EBITDA, EUR 1,000 | -179 | -22 | -718.2% |
| EBITDA of net sales, % | -3.0% | -0.3% | |
| Depreciation and amortisations, EUR 1,000 | -706 | -716 | -1.4% |
| Operating profit, EUR 1,000 | -884 | -737 | -19.9% |
| Operating profit of net sales, % | -14.8% | -10.6% |
January-March 2025
Net sales decreased by -14.0% to EUR 6.0 million (7.0). In Sweden, net sales decreased as a result of customer churn in 2024. Integration challenges have caused more customer churn than normal in the first acquisitions. We saw the trend turning for the better in new sales and churn, but the 2024 customer churn will negatively impact net sales development in 2025.
EBITDA was EUR -0.2 million (0.0), representing -3.0% (-0.3) of net sales. Profitability was burdened by the decrease in net sales, and the aim is to scale the number of employees to correspond to net sales. Cost scaling has not been possible at the same pace as the decline in net sales, as we have aimed to secure growth preconditions. Profitability has also been burdened by the implementation of our own platform, which requires resources to ensure the progress of the project and has kept the cost level higher than under normal circumstances.
Spain
| 1–3/2025 | 1–3/2024 | Change, % | |
|---|---|---|---|
| Net sales, EUR 1,000 | 3,563 | 3,537 | 0.7% |
| Net sales growth, % | 0.7% | 232.0% | |
| EBITDA, EUR 1,000 | 8 | -20 | 141.5% |
| EBITDA of net sales, % | 0.2% | -0.6% | |
| Depreciation and amortisations, EUR 1,000 | -522 | -490 | 6.4% |
| Operating profit, EUR 1,000 | -514 | -510 | -0.8% |
| Operating profit of net sales, % | -14.4% | -14.4% |
January-March 2025
Net sales were at the level of the comparison period at EUR 3.6 (3.5) million. The focus of new customer acquisition was on acquiring customers with recurring invoicing, which resulted in a decrease in nonrecurring net sales. Organic growth is expected to strengthen with well-functioning new customer acquisition and the entry into force of the e-invoicing Directive. The e-invoicing Directive requires every business to acquire software to send and receive e-invoices. In light of current information, the Directive will enter into force in stages in 2025-2027, depending on the size of the company. This is expected to increase demand for Talenom's turnkey solution, which provides the customer with software and service in the same package.
The relative EBITDA was 0.2% (-0.6%). We focused on improving profitability by streamlining processes and investing in acquiring recurring and profitable customers.
Other countries (Italy)
| 1–3/2025 | 1–3/2024 | Change, % | |
|---|---|---|---|
| Net sales, EUR 1,000 | 119 | 151 | -20.8% |
| Net sales growth, % | -20.8% | 6.8% | |
| EBITDA, EUR 1,000 | -120 | -39 | -210.9% |
| EBITDA of net sales, % | -100.8% | -25.7% | |
| Depreciation and amortisations, EUR 1,000 | -5 | -1 | 550.0% |
| Operating profit, EUR 1,000 | -126 | -40 | -217.7% |
| Operating profit of net sales, % | -105.1% | -26.2% |
Talenom acquired a bridgehead from Italy in early 2023. Our priority is to grow organically in Italy. The Italian business model has changed, and responsible accountants produce some of the services through outsourcing. Therefore, net sales have decreased. Measured by EBITDA, the Italian business is currently loss-making, which is caused by investments in the Software business and the pilot being launched in Italy.
Unallocated items
Unallocated items include net sales and cost recognition of additional purchase prices related to acquisitions. The impact of these was EUR 0.6 million negative compared to the reference period.
| 1–3/2025 | 1–3/2024 | Change, % | |
|---|---|---|---|
| Net sales, EUR 1,000 | |||
| Net sales growth, % | |||
| EBITDA, EUR 1,000 | -323 | 268 | -220.4% |
| EBITDA of net sales, % | |||
| Depreciation and amortisations, EUR 1,000 | |||
| Operating profit, EUR 1,000 | -323 | 268 | -220.4% |
| Operating profit of net sales, % |
Comparison figures according to the changed segment reporting by operating country
From the beginning of 2025, the Spanish business will be reported separately, while other countries will comprise the Italian business.
| Spain | Q1'2023 | Q2'2023 | Q3'2023 | Q4'2023 | Q1'2024 | Q2'2024 | Q3'2024 | Q4'2024 |
|---|---|---|---|---|---|---|---|---|
| Net sales, EUR 1,000 | 1,065 | 1,679 | 2,361 | 2,811 | 3,537 | 4,017 | 3,763 | 3,297 |
| EBITDA, EUR 1,000 | -397 | -149 | -98 | -253 | -20 | 428 | 250 | -476 |
| EBITDA, % of net sales Depreciation and amortisations, |
-37.2% | -8.9% | -4.1% | -9.0% | -0.6% | 10.7% | 6.6% | -14.4% |
| EUR 1,000 | -167 | -219 | -284 | -356 | -490 | -498 | -494 | -484 |
| Operating profit, EUR 1,000 | -563 | -368 | -381 | -609 | -510 | -70 | -244 | -960 |
| Other countries (Italy) | Q1'2023 | Q2'2023 | Q3'2023 | Q4'2023 | Q1'2024 | Q2'2024 | Q3'2024 | Q4'2024 |
|---|---|---|---|---|---|---|---|---|
| Net sales, EUR 1,000 | 141 | 99 | 150 | 193 | 151 | 144 | 162 | 200 |
| EBITDA, EUR 1,000 | 18 | -42 | 33 | -3 | -39 | -56 | -36 | -17 |
| EBITDA, % of net sales Depreciation and amortisations, |
12.9% | -42.7% | 21.7% | -1.3% | -25.7% | -38.7% | -22.1% | -8.6% |
| EUR 1,000 | -1 | -1 | -2 | -2 | -1 | 1 | -2 | -5 |
| Operating profit, EUR 1,000 | 17 | -44 | 31 | -5 | -40 | -55 | -38 | -22 |
Key business figures January-March 2025
From the beginning of 2025, Talenom reports key figures for two business areas: Software business and Accounting business. Comparable key figures for the business areas are not available for 2024.
Comparable Software business net sales were approximately EUR 5.4 million. The higher net sales in the first quarter were affected by a change in the net sales recognition principle of the Software business, which improved reported net sales by EUR 1.5 million, amounting to EUR 6.9 million. The profitability of the recurring software business, measured by EBITDA and adjusted for the recognition principle, was EUR 3.8 million, or 70.3%.
Net sales of the Accounting business were about EUR 28.8 million. Profitability measured by EBITDA was EUR 5.3 million, or 18.5%.
| Software business | Accounting business | Group |
|---|---|---|
| 6,884 | 28,834 | 35,718 |
| 5,333 | 5,336 | 10,669 |
| 77.5% | 18.5% | 29.9% |
| 2,651 | 2,022 | 4,673 |
| 38.5% | 7.0% | 13.1% |
A more detailed description of the Software business
Talenom's Software business in figures
- Over 12,000 customer companies
- Over 60,000 software users
- Over 9.5 million invoice transactions per year
- Over 200,000 logins per month
- Operates in four countries
- 140 professionals
- Over EUR 20 million in recurring net sales, consisting of Finland
- Over 40 partner accounting firms in Finland and the total market size is 4,500 accounting firms
Roadmap for launching Software business distribution
Q3/2024
• The strategy update focuses on starting software sales to other accounting firms as well
Q4/2024
- Separated into its own company, invoicing separately for software and services in Finland
- Management and responsibilities of the software and service business reorganized
Q1/2025
- Figures for the Software business reported separately
- Recruitment of business leads in Spain and Sweden
- Brand launch on 28 May 2025
2026
• Growth in 2025–2026 will mainly come from converting Swedish and Spanish customers to the software
2027
• Aiming to have over 50% of the platform business growth through Partner agencies
Investments and business acquisitions during the review period
Net investments during the review period totalled EUR 4.4 (8.0) million. Investments in proprietary software decreased by approximately EUR 0.8 million compared to the reference period.
| Investments | Q1'2025 | Q1'2024 |
|---|---|---|
| New customer agreements, EUR 1,000 | 907 | 909 |
| Software and digital services, EUR 1,000 | 3,149 | 3,901 |
| Acquisitions in Finland, EUR 1,000 | 0 | 0 |
| Acquisitions abroad, EUR 1,000 | 0 | 2,713 |
| Other investments | 357 | 517 |
| Total net investments, EUR 1,000 | 4,413 | 8,039 |
Business acquisitions after the review period
On 10 March 2025, Talenom Plc agreed to acquire the entire share capital of the Spanish company Querol & Querol Assessors S.l. The acquired business was transferred to Talenom on 1 April 2025.
Purchase prices, net sales and operating profit of the acquisition targets acquired after the review period:
| EUR 1,000 | Share transactions | Business acquisitions |
|---|---|---|
| Total purchase prices | 1,750 | 0 |
| Maximum contingent consideration | 50 | 0 |
| Net sales, previous 12 months at time of purchase, total | 1,421 | 0 |
| Operating profit, previous 12 months at time of purchase, total | 248 | 0 |
Principles for preparing the business review
This Business Review is not an Interim Financial Report prepared in accordance with the IAS 34 standard. The Company prepares its interim financial reporting in accordance with the Securities Market Act, in addition to which the Company releases Business Reviews for the first three and nine months of the year. The Business Reviews contain key information regarding the financial position and development of the Group. The operating segments have been formed based on geographical areas. Segment reporting is based on the operating countries of the Group companies. Countries in the early development phase are reported as one item.
The figures of the Business Review are unaudited.
The Company reports commonly applied alternative performance measures to reflect the underlying business performance and enhance comparability between financial periods. Alternative performance measures not based on IFRS standards provide notable additional information to company management, investors and other interested parties. Alternative performance measures should not be considered as a substitute for key figures in accordance with IFRS. Alternative performance measures used by the company include operating profit, operating profit as % of net sales, comparable operating profit, comparable operating profit as % of net sales, EBITDA, EBITDA as % of net sales, return on investment (ROI) %, interest-bearing net liabilities, net gearing ratio %, equity ratio %, working capital, and net investments. The formulas are presented below in the section "Formulas".
TABLES
Consolidated comprehensive income statement
| 1 Jan. – 31 Mar. | 1 Jan. – 31 Mar. | ||
|---|---|---|---|
| EUR 1,000 | 2025 | 2024 | 2024 |
| Net sales | 35,718 | 34,053 | 126,231 |
| Other operating income | 28 | 493 | 2,955 |
| Materials and services | -877 | -918 | -3,532 |
| Costs arising from employee benefits | -19,699 | -20,017 | -75,640 |
| Depreciation and amortisations | -5,996 | -5,631 | -23,337 |
| Other operating expenses | -4,502 | -4,124 | -15,259 |
| Operating profit (EBIT) | 4,673 | 3,855 | 11,417 |
| Financial income | 70 | 95 | 284 |
| Financial expenses | -1,088 | -1,125 | -4,786 |
| Net financial expenses | -1,018 | -1,030 | -4,502 |
| Profit (loss) before taxes | 3,655 | 2,825 | 6,915 |
| Income | |||
| taxes | -1,149 | -790 | -825 |
| Profit (loss) for the financial year | 2,506 | 2,034 | 6,090 |
| Other items of comprehensive income | |||
| Items that may be reclassified subsequently to profit or loss | |||
| Translation differences | -36 | -17 | -58 |
| Cash flow hedging | -36 | 0 | -119 |
| Taxes on items that may be reclassified subsequently to profit or loss | 7 | 0 | 24 |
| Total comprehensive income for the financial year | 2,441 | 2,018 | 5,937 |
Consolidated balance sheet
| EUR 1,000 | 31 Mar. 2025 |
31 Mar. 2024 |
31 Dec. 2024 |
|
|---|---|---|---|---|
| ASSETS | ||||
| Non-current assets | ||||
| Goodwill | 68,643 | 68,643 | 68,643 | |
| Other intangible assets | 55,061 | 54,335 | 54,310 | |
| Right-of-use assets | 8,611 | 10,428 | 9,382 | |
| Property, plant and equipment | 4,760 | 4,687 | 4,737 | |
| Other non-current financial assets | 209 | 203 | 186 | |
| Deferred tax assets | 2,673 | 1,520 | 2,603 | |
| Capitalised contract costs | 11,862 | 11,437 | 11,764 | |
| Total non-current assets | 151,819 | 151,253 | 151,624 | |
| Current assets | ||||
| Trade and other receivables | 20,275 | 19,023 | 16,733 | |
| Current tax assets | 1,222 | 1,199 | 952 | |
| Cash and cash equivalents | 9,021 | 12,314 | 8,669 | |
| Total current assets | 30,518 | 32,536 | 26,353 | |
| Total assets | 182,338 | 183,789 | 177,978 | |
| EQUITY | ||||
| Equity | 80 | 80 | 80 | |
| Reserve for invested unrestricted equity | 30,935 | 30,935 | 30,935 | |
| Fair value reserve | -124 | 0 | -95 | |
| Retained earnings | 21,832 | 18,366 | 23,458 | |
| Total equity | 52,722 | 49,380 | 54,377 | |
| LIABILITIES | ||||
| Non-current liabilities | ||||
| Financial liabilities | 91,159 | 70,730 | 86,157 | |
| Accounts payable and other liabilities | 0 | 2,015 | 650 | |
| Lease liabilities | 5,193 | 6,388 | 5,714 | |
| Deferred tax liabilities | 4,181 | 4,604 | 4,291 | |
| Total non-current liabilities | 100,533 | 83,737 | 96,812 | |
| Current liabilities | ||||
| Financial liabilities | 465 | 15,044 | 549 | |
| Accounts payable and other liabilities | 23,599 | 30,017 | 22,259 | |
| Lease liabilities | 3,815 | 4,093 | 3,866 | |
| Current tax liabilities | 1,204 | 1,518 | 115 | |
| Total current liabilities | 29,083 | 50,672 | 26,789 | |
| Total liabilities | 129,616 | 134,409 | 123,601 | |
| Total equity and liabilities | 182,338 | 183,789 | 177,978 |
FORMULAS
| = | net sales - net sales of the preceding year | ||
|---|---|---|---|
| Net sales growth, % | net sales of the preceding year | x 100 | |
| Operating profit (EBIT) | = | net sales + other operating income - materials and services - personnel expenses - depreciations and amortisations - other operating expenses |
|
| Operating profit (EBIT), % | = | EBIT net sales |
x 100 |
| Return on investment (ROI), % (rolling 12 months) |
= | operating profit (EBIT) before taxes + interest and other financial expenses total equity and liabilities - non-interest-bearing liabilities (average of the accounting period) |
x 100 |
| Interest-bearing net liabilities | = | interest-bearing liabilities - cash in hand and in banks | |
| Gearing ratio, % | = | interest-bearing liabilities - cash in hand and in banks capital and reserves |
x 100 |
| Equity ratio, % | = | capital and reserves balance sheet total - advances received |
x 100 |
| Working capital | = | inventories + non-interest-bearing current receivables - non-interest-bearing current liabilities |
|
| Net investments | = | investments in tangible and intangible assets - sales of assets | |
| Earnings per share | = | net profit of the review period Weighted average number of shares outstanding during the review period |
|
| Compound annual growth rate (CAGR) |
= | 1 liikevaihto jakson lopussa ( ) vuosien määrä -1 liikevaihto jakson alussa |
|
| EBITDA | = | operating profit + depreciation + amortisation | |
| EBITDA, % | = | EBITDA net sales |
x 100 |
| Comparable EBITDA | = | EBITDA - one-off increase due to change in the recognition principle for net sales - expenses and income recognition related to additional purchase prices from acquisitions |
|
| Comparable operating profit | = | operating profit - one-off increase due to change in the recognition principle for net sales - expenses and income recognition related to additional purchase prices from acquisitions |
Operating profit (EBIT) measures Talenom's ability to generate a profit in its business operations. Operating profit is a key metric of the company's profitability and financial performance, and indicates the profit generated from business operations.
Operating profit margin refers to operating profit as a percentage of net sales and is used to proportion operating profit to net sales and improve comparability of operating profit over reporting periods.
Return on investment, meanwhile, measures operating result relative to invested equity. It describes Talenom's relative profitability, in other words, how effectively the company can generate profit for capital invested in the company.
Interest-bearing net liabilities is the net sum of Talenom's debt financing. The key figure provides information on the company's indebtedness and capital structure
Net gearing is the ratio between Talenom's equity and interest-bearing liabilities It describes the level of risk associated with the company's financing and is a useful metric for tracking the company's debt-to-equity ratio.
Equity ratio is a financing structure metric that shows what proportion of the company's balance sheet is financed by its own equity. Equity ratio provides information on the level of risk associated with financing and the level of equity used in business operations, and describes the company's solvency and tolerance against loss in the long term.
Working capital measures the amount of financing committed in Talenom's business operations and describes the efficiency of capital use.
Net investments measure the amount of investments minus the sale of fixed assets. The key figure provides additional information on the cash flow needs of business operations.
EBITDA is an important key figure that measures Talenom's ability to generate profit in business before depreciation, amortisations and financial items.
EBITDA margin refers to EBITDA as a percentage of net sales and is used to proportion EBITDA to net sales and improve comparability of EBITDA over reporting periods.
Comparable EBITDA describes EBITDA without one-off income statement impacts from changes in accounting principles and recognitions and expenses arising from additional purchase prices related to acquisitions.
Comparable operating profit describes operating profit without one-off income statement impacts from changes in accounting principles and recognitions and expenses arising from additional purchase prices related to acquisitions.
TALENOM PLC Board of Directors
Further information: Otto-Pekka Huhtala CEO, Talenom Plc +358 40 703 8554 [email protected]
