System integrator and services outfit Ordina has seen its top line shrink in its third financial quarter, due to declining sales in its Dutch homeland.
The firm's revenue decreased by 3.7 per cent year on year to €81.6m, but profits before tax grew by 13.5 per cent to €4.2m, compared with the €3.7m reported in the same period last year. As a result, profit margin rose from 4.3 to 5.2 per cent year on year.
Ordina's native Netherlands business bore the brunt of the sales decline, as revenue tumbled 8.7 per cent year over year to €60.8m.
Meanwhile the firm's overseas business – which comprises sales in Belgium and Luxembourg – flourished, as revenue surged by 14.6 per cent year over year to €20.9m.
Ordina's public sector business has repeatedly been put under strain, and as a result the firm introduced a cost-saving programme designed to create annual savings of around €6m. Last quarter appears no different as revenues generated through the public sector shrank by eight per cent year on year to €27.5m during the quarter. Sales put through the financial services sector took a 10.1 per cent hit year over year and reported revenues of €24m.
Yet Ordina intends to reverse the downward trend in its public sector business. The firm won five public sector framework contracts for IT outsourcing during Q3, which it claims will "create a solid basis for growth of revenues from the public sector in due course".
It blamed dwindling financial services sales on "the recent announcement of reorganisations in the sector".
The firm saw bright spots in its healthcare segment, which surged by 31.1 per cent year on year to €6.1bn, driven by "continued demand in the pharmaceutical sector in Belgium/Luxembourg".
CEO of Ordina Stépan Breedveld said: "With less revenues in the public sector and financial services segments, the result increased on the back of cost controls. The growth in the industry and healthcare segments continued. Belgium/Luxembourg performs well. The recent win of five framework IT outsourcing contracts from the Ministry for the Interior and Kingdom Relations creates a solid basis for growth in revenues from the public sector in due course. These contracts are for IT positions in outsourcing fields that Ordina did not previously fill directly."
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