Total revenue down 8%, recurring revenue up 20% in first half of 2024

Revenue amounted to €124.1 million in the first half of 2024, 8% less than in the first half of 2023 and recurring revenue was up 20% and accounts for 39% of total revenue (30% in the first half of 2023).

Other key points

• Added value in percentage of revenue increased to 71% (H1 2023: 69%).
• Operating profit decreased to €10.6 million (H1 2023: €16.1 million) in the first half of 2024.
• The operating margin was 8.5% (H1 2023: 12.0%).
• Nedap expects revenue growth in the second half of 2024.

Ruben Wegman, Nedap CEO: "As indicated earlier, the first half of 2024 started slower compared to the same period in 2023. The catch-up effect that boosted our revenue in the first half of 2023 has tapered off. Additionally, softening market conditions within Livestock and Retail have lasted longer than anticipated. While we continue to invest in growth, we are mindful of the temporary slowdown in revenue development and tempered the hiring of new talent in the first half of 2024. The upward trend in our recurring revenue continued, resulting in a higher added value as a percentage of revenue and reducing volatility in revenue development. We are confident in the long-term outlook for our key markets and foresee revenue growth in the second half of the year compared to the same period last year."

Outlook

We foresee revenue growth for the second half of the year compared to the same period in 2023. Due to ongoingvolatility, primarily in the livestock market, it is too early to predict the impact on the revenue growth for the yearas a whole. We reiterate our Step Up! financial ambitions, including an EBIT margin growing toward 15%, albeitwith a potential one-year delay.

Download the full press release here: 2024 Half-year figures Nedap N.V.