Econocom Group SE: Strong Organic Growth and Strategic Advancements in 2024

Econocom Group SE (XBRU:ECONB) reported robust financial results for the year 2024, showcasing strong organic growth and strategic advancements despite facing exceptional costs and market challenges. The company's revenue reached €2,744 million, increasing by 3.6% on a fully organic basis, in line with annual guidance. The operating margin stood at €110.4 million, representing a profitability rate of 4.0%. Consolidated net profit amounted to €37.7 million, i.e., earnings per share of €0.220, affected by the rise of non-recurring items arising from the group's transformation. Net financial debt was significantly reduced to €96 million by year-end.



Key strategic initiatives, such as the One Econocom plan and the acquisition of bb-net, drove the company's performance in 2024. The One Econocom plan aimed to enhance synergies between business lines, solutions, and geographical areas, as well as strengthen the sales force. This plan resulted in significant operational progress, with increased synergies between business lines and countries, and substantial investments in sales teams. The acquisition of bb-net, Germany's leading player in refurbished IT, consolidated the group's presence in the circular economy in Europe. This strategic transaction aligned with the One Econocom strategic plan, including its demanding financial and non-financial targets set by the Group.



Econocom Group's diversified business model contributed to its solid operating margin and profitability in 2024. The company's three activities—Products & Solutions (P&S), Technology Management & Financing (TMF), and Services—ensured a good balance and helped navigate the volatile technology industry. The P&S segment generated revenue of €1,205 million, up 0.5%, with an operating margin of €39.3 million, i.e., a profitability of 3.3%. The TMF segment achieved revenue of €1,048 million, marking a substantial increase of 7.7%, with an operating margin of €46 million at a profitability rate of 4.4%. The Services segment reported revenue of €491 million, up 3.1%, with an operating margin of €25 million, reflecting a 5.1% profitability rate.

In conclusion, Econocom Group SE's strong organic growth and strategic advancements in 2024 demonstrate the company's resilience and adaptability in the dynamic digital services landscape. The company's diversified business model, strategic initiatives, and focus on sustainability have positioned it well for continued success in the long term.