Talenom as an investment

Outlook and guidance

Talenom's guidance for 2023 (updated 12 October 2023)

Talenom estimates that 2023 net sales will be around EUR 120–125 million, EBITDA around EUR 30–34 million, comparable operating profit excluding software-related write-downs around EUR 10–13 million and operating profit around EUR 7–10 million.

Background for the change:

In line with its strong growth strategy, the company entered 2023 with resources tuned to growth. However, the market situation changed significantly during the spring. The company’s growth has been slower than expected this year as a result of the effects from the general economic slowdown in Finland and Sweden. The weak economic cycle has resulted in decreasing customer-specific invoicing as customers’ businesses contract and in weaker net sales growth than anticipated. In resourcing, Talenom prepared for stronger growth, which, together with weaker-than-targeted net sales, has depressed profitability. Due to the economic cycle that weakened further in the second half of the year, the impact of the adjustment measures initiated during spring will not be sufficiently visible during the rest of the year. These measures have progressed as planned and will significantly improve the profitability base in 2024 while maintaining the preconditions for growth in line with the strategy. The company’s business is still very profitable relative to the industry.

Talenom’s architectural reform has progressed faster than expected, and as a result old software will be decommissioned. In the third quarter, the company will make a non-recurring write-down of approximately EUR 3.2 million related to software investments.