ESI Group releases its sales for the third quarter of 2022 (period from July 1st to September 30th). The proforma figures consider the July divestitures and the cessation of sales in Russia. Note that there was still €0.6m linked to these divestitures and Russia in Q3, and €2.7m Year to date (9 months).
The first nine months of the year show strong growth in our recurring revenues at +7,3%, as well as a decline in perpetual software licenses and services. Our decisions to divest non-core activities, stop operations in Russia and rigorously manage costs bode well for the execution of our 3-year plan “One ESI 2024 – Focus to Grow”, aiming for considerable improvements in both profit and growth. These figures align with our messages at last month’s Investor Conference and illustrate our business's strengthened health and resiliency. We are moving in the right direction to ensure the sustainability of our company and to fulfill the expectations of all our stakeholders.
Cristel de Rouvray
Chief Executive Officer of ESI Group
Third-quarter year-over-year and proforma comparison
In Q3 2022, ESI Group generated sales of €21.8m (+0.1%, -1.3% cer) driven by licenses at €17.6m (+4.0%, +2.3% cer). The New Business activity is stable year to date.
9-month, year-over-year and proforma comparison
ESI Group's sales for the first 9-months of 2022 amounted to €104.0m (+4.1%, +2.7% cer) compared to €99.9m for the same period last year, driven by licenses +5.0% at current rate. Recurring revenues increased by 7.3%, at current rate, at 93.2% compared to 91.0% in 2021.
The business grew across all geographies at a current (Americas at 16.0%) and constant rate. The 9-month 2022 sales geographical breakdown by region was as follows: EMEA represents 46.8% (vs 48.3%), Asia represents 37.2% (vs 37.1%) and the Americas represent 16.1% (vs. 14.4%).
All the industries of focus of the Group (Automotive, Aerospace, Energy, and Heavy Industry) grew during the first 9 months of the year. The main driver of ESI Group’s business, Automotive led that growth confirming the positioning of the company.
