GK Software Reports Significant Profit and Sales Growth for 2021
GK Software SE's 2021 annual report reveals an 11.3% increase in sales and a 64.3% rise in EBIT, driven by a successful transition to cloud-based solutions.
German retail software provider GK Software SE has released its annual report for 2021, highlighting significant financial growth and a successful pivot towards cloud services. The company reported an 11.3% increase in sales, reaching 130.8 million euros from 117.6 million euros in 2020.
This growth was achieved despite the ongoing global pandemic and a strategic shift towards Software as a Service (SaaS) contracts, which defer revenue recognition to future periods. Earnings Before Interest and Taxes (EBIT) saw a substantial increase of 64.3%, climbing to 17.3 million euros from 10.5 million euros the previous year. Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) grew by 40.4% to 26.8 million euros, representing a 20.5% EBITDA margin on sales. Net profit more than doubled year-on-year to 13.3 million euros.
The company secured 15 new core business contracts in 2021, seven of which were SaaS agreements. These new contracts represent up to 44,665 installations across 6,120 stores on four continents. Recurring and repeatable revenue accounted for nearly two-thirds of the company's income. Revenue from cloud business operations and subscriptions quadrupled to 22.9 million euros from 5.3 million euros in the previous year.
Based on these results and early 2022 trends, GK Software anticipates continued revenue growth and a further improvement in EBIT for 2022, aiming to meet its mid-term forecast. The company projects sales between 160 million and 175 million euros by 2023, with an EBIT margin of 15%.