Shares in Also Holding rose on Wednesday as the Swiss technology company announced that it will stick to its full-year and mid-term guidance. Despite reporting lower first-half net profit and sales, Also Holding remains optimistic about its future prospects.
At 1409 GMT, Also Holding's shares were up 3% at CHF191.40, having earlier reached a peak of CHF193.80. This positive response from the market reflects investors' confidence in the company's ability to overcome the challenges it currently faces.
For the year 2023, Also Holding expects to achieve earnings before interest, taxes, depreciation, and amortization (EBITDA) in the range of 265 million euros to 305 million euros ($293 million-$337.2 million). Additionally, the company aims to achieve mid-term EBITDA between EUR330 million and EUR420 million.
"Subject to the increasing political and economic volatility since the beginning of the year, we confirm our short- and medium-term targets," stated Chief Executive Gustavo Moeller-Hergt. This reaffirmation of their targets demonstrates Also Holding's determination to pursue its goals despite external uncertainties.
During the first half of the year, Also Holding recorded a net profit of EUR52.5 million, a decrease compared to EUR62.9 million in the same period last year. Sales also declined from EUR5.52 billion to EUR4.83 billion.
EBITDA dropped from EUR127.5 million to EUR111.5 million, according to the company's statement.
Analysts at Stifel acknowledged that while sales were weaker than anticipated, Also Holding's first-half EBITDA exceeded their expectations. This suggests that the company successfully managed its costs and maintained profitability despite the challenging market conditions.