Q.beyond AG Anticipated to Show Operational Improvements in Q1 Report

NuWays AG has released an analysis on q.beyond AG, expecting the company to show potential operational improvements in its Q1 results, scheduled for release on May 13th. The research suggests muted top-line growth but notable progress in bottom-line, attributed to efficiency measures.

q.beyond is projected to post a slight 2% year-on-year gain in Q1 sales, amounting to €47.5 million. The company has restructured its reporting into two segments: Managed Services and Consulting. Despite limited overall sales growth expected for the year, q.beyond is poised to benefit from the ongoing SAP S/4HANA transformation momentum, following a recent project completion with Neue Westfälische.

The improvement in Q1 EBITDA is notable, predicted to rise to €1.4 million from a previous €-1.3 million. This is largely due to increasing near- and off-shoring, which is part of the strategy to enhance gross margins and profitability, particularly within consulting and development sectors. Further profitability improvements are envisaged across 2024.

Looking forward, q.beyond might explore inorganic growth opportunities by year-end, leveraging its financial position with over €30 million net cash, which could enable strategic mergers and acquisitions. The company maintains a "Buy" recommendation with a target price of €1.00.