KPS Full Year 2024 Earnings: Revenues Beat Expectations, EPS Lags

In the ever-evolving landscape of the retail sector, KPS AG (WKN: A1A6V4 / ISIN: DE000A1A6V48) has consistently demonstrated its ability to adapt and thrive. As the leading consulting partner for digital transformation in the retail sector, KPS specializes in Digital Strategy, Digital Customer Interaction, and Digital Enterprise. The company recently announced its results for the full year 2024, revealing a mixed bag of positive and negative developments.

KPS's revenue for the full year 2024 came in at €145.4 million, representing an 18% decline compared to the previous year. While the company experienced revenue growth in Spain and the UK, revenues in Scandinavia, Benelux, and particularly Germany declined due to weak economic growth and restrained investment activity in the retail sector. Despite this revenue decline, KPS's unadjusted EBITDA decreased only moderately by €1.8 million to €6.0 million, highlighting the stability of the company's business model and the measurable impact of its strategically expanded portfolio.

However, the company's earnings per share (EPS) lagged behind expectations, primarily due to a non-cash goodwill impairment of €17.0 million from previous acquisitions and restructuring costs associated with insolvencies. These factors resulted in a loss of €17.8 million for KPS, compared to a profit of €0.03 million in the previous year. Excluding these one-time effects, KPS's adjusted EBIT amounted to a positive €6.1 million, an increase of 7% compared to the adjusted amount from the previous year.



KPS's CEO expressed optimism about the company's future growth prospects, citing the growing customer base and the solid financial foundation established by the company's strategic initiatives. The company expects that economic challenges and political uncertainties, particularly in the European retail sector, will continue throughout the 2025 financial year. However, the growing customer base and the expansion of the product portfolio lay the groundwork for future earnings growth and give cause for cautious optimism.

In this context, the KPS Executive Board forecasts a revenue for the 2025 financial year to be between €129.5 million and €151.5 million. EBITDA is expected to be in a range from €10.2 million to €14.9 million. As KPS continues to navigate the challenging market conditions in the retail sector, the company's focus on internationalization, innovation, and industrialization will be crucial in driving its future growth and success.

In conclusion, KPS's full year 2024 earnings results reflect a mixed performance, with revenues beating expectations but EPS lagging behind. Despite the challenges faced by the company, its strategic focus and solid financial foundation provide a strong foundation for future growth and success in the retail sector. As the company continues to adapt and innovate, it remains well-positioned to capitalize on new opportunities and overcome the obstacles it faces in the market.