Business

Multiconsult ASA Exhibits Strong First Quarter Performance in 2024

OSLO, Norway, May 8, 2024 – Multiconsult ASA (OSE: MULTI), a leading firm in engineering consultations, has reported a robust start to the year with its first quarter financial results demonstrating strong operational performance and heightened activity levels across the board. The company's EBITA for the first quarter stood at an impressive NOK 136.8 million. This figure represents an EBITA margin of 10.0 percent - a testament to the company’s continued positive trajectory in terms of profitability and sustained growth patterns. The results benefited from a high activity level, with a billing ratio that saw 2.5 percentage points increase to 73.5 percent, compared to the same period in the previous year. Net operating revenues experienced a 4.3 percent upsurge, amounting to NOK 1,366.9 million, largely driven by 9.8 percent organic growth, adjusted for calendar effects. Despite six fewer working days compared with last year's first quarter, which caused an NOK 113.7 million negative impact on both net operating revenues and EBITA, the company secured a substantial order intake, reinforcing its robust future prospects.

Quarter Overview: A Glance at the Key Metrics

The first quarter of 2024 has been highlighted by several noteworthy developments for Multiconsult ASA:

• A promising increase in net operating revenues by 4.3 percent reaching NOK 1,366.9 million, marking significant progress from the previous NOK 1,310.2 million.
• Organic revenue growth, once adjusted for the calendar effect, made an impressive jump of 9.8 percent.
• EBITA attained the mark of NOK 136.8 million, equating to an EBITA margin of 10.0 percent, demonstrating continued profitability.
• The comparative effect of the calendar difference from the first quarter of 2023 negatively influenced net revenues and EBITA by NOK 113.7 million.
• Billing ratio showed remarkable improvement, standing at 73.5 percent, which was an increase of 2.5 percentage points.
• Strong order intake demonstrated the company's ongoing market prowess, boasting NOK 1,847 million.
• Order backlog solidified future prospects, registering at NOK 5,086 million.
• Staff strength expanded by 9.9 percent with full-time equivalents (FTE) reaching 3,550.
• Net profit was reported at NOK 95.5 million with earnings per share pegged at NOK 3.52.
• The overall market outlook has maintained stability, indicative of a foreseeable steady growth climate for the firm.
• The quarter summarized an impressive intake, underpinned by exceptional operational performance and compelling results.

CEO Insights: Steering Toward Innovation and Growth

Grethe Bergly, the CEO of Multiconsult, reflected on the quarter's strong start, noting the continuity of momentum from the year's end of 2023. Bergly attributes the positive results to the commendable order intake, organic growth, and overall impressive operational performance, which has been buoyed by a high billing ratio that outperformed the prior year's quarter by 2.5 percentage points. Bergly praised the Multiconsult team for their dedication and proficiency in delivering high-value projects that cater to client demands and contribute positively to society. The demand for Multiconsult’s services has remained strong, as evidenced by the quarter’s robust order intake totaling NOK 1.85 billion.

Underpinning the company's strategy is its ambition to significantly influence the industry and partner with clients that are bold enough to embark on unconventional and innovative projects. In line with this vision, Multiconsult played a vital role in the development of the solar plant at Isfjord Radio in Svalbard, which recently clinched the prestigious Solar Energy Award for Facility of the Year. This project showcases Multiconsult's capacity to extend its expertise in extreme arctic conditions, highlighting solar power's potential role in supporting the transition to green energy even in the harshest climates.

Looking ahead, the company anticipates a stable market, with a solid and growing order backlog, which signals a diversification of its portfolio across different business areas. Even as the housing and real-estate market continues to face challenges, the broader building and property market indicates signs of stabilization.

Financial Breakdown of the First Quarter

Revenue Streams Flourish

The financial performance for the first quarter of 2024 sees net operating revenues reaching NOK 1,366.9 million, which represents a noteworthy 4.3 percent growth from the previous year. The robust organic growth rate, standing at 9.8 percent post-adjustment for calendar effects and acquisitions, speaks volumes about Multiconsult’s growing influence and reach in the market. The increase in revenue can be attributed to an improved billing ratio, expanded capacity from a higher headcount, and escalated billing rates, all of which combined to push the revenue figures upwards.

Expenditure Insights

On the expenditure front, operating expenses have escalated by 12.7 percent from the previous year, amounting to NOK 1,170.9 million. This increase aligns with standard salary adjustments, an uptick in manning levels from recent acquisitions, and a sharp rise in net recruitment. Other operating expenditures, including costs related to office space, consultation, IT infrastructure, and overall inflationary trends, climbed by 9.1 percent, amounting to NOK 153.0 million.

Profitability Metrics

EBITDA for the quarter endured a 27.7 percent drop from the preceding year, standing at NOK 196.1 million, reflecting an EBITDA margin of 14.3 percent. EBITA was reported at NOK 136.8 million, indicating a decrease of 36.8 percent over the same period last year but still maintaining a solid EBITA margin of 10.0 percent.

A Look Ahead: Sustained Market Stability

As the company moves forward, the general market outlook appears stable, with various business areas showing promising trajectories. The housing and real estate sector may yet present challenges, but the wider building and property sectors appear stable, albeit with lingering uncertainties. Multiconsult is closely monitoring its architectural business and making precise staffing adjustments as necessary, while the remaining business segments continue to project a solid and upbeat market expectation.

To delve deeper into the CEO's comments and for a comprehensive overview of Multiconsult's performance in the first quarter, stakeholders and interested parties are encouraged to review the first quarter 2024 report for detailed insights.

Investor Engagement and Resource Availability

In keeping with its commitment to transparency and stakeholder engagement, Multiconsult has organized a dual-language presentation on May 8, 2024. Interested participants are welcomed to attend the Norwegian rendition at the luxurious Hotel Continental in Oslo at 08:30 CEST. Subsequently, an English presentation is scheduled for 09:30 CEST, accessible through a live webcast. The interactive platform will allow for the submission of questions in real-time during either language session.

For those interested in attending the Norwegian presentation at 08:30, details are available at the provided link: Norwegian Presentation Link.

The English session at 09:30 can be accessed via this link: English Presentation Link.

Comprehensive materials including a live webcast, the complete report, presentation, and recordings will be made publicly available on Multiconsult's investor relations webpage www.multiconsult-ir.com and also on https://newsweb.oslobors.no/.

Investor and Media Contact:

• For further information concerning financial insights, Ove B. Haupberg, CFO is available at +47 401 00 900 or via email at [email protected].

• For media inquiries, Gaute Christensen, VP Communications can be reached at +47 911 70 188 or at [email protected].

This announcement is in association with Cision, an esteemed provider of news and press release distribution services. More details can be found at http://news.cision.com.

In addition to the resources outlined, the following materials are available for download:

• Multiconsult First Quarter 2024 - Stock Market Announcement - PDF which showcases an official stock market release for the investors and general public.

• Multiconsult First Quarter 2024 Presentation - PDF providing a visual and textual presentation of the quarter's performance.

• Multiconsult First Quarter 2024 Report - PDF for a comprehensive printed report detailing financials and strategic insights of the quarter.

Multiconsult ASA continues to manifest strong operational expertise and a competitive edge in engineering consultations with these positive results and strategic outlook, maintaining its course towards sustained growth and innovation.