Software AG collects margin targets – figures as expected

Frankfurt (Reuters) – Because of the bleak economic prospects, Software AG is saying goodbye to its previous targets.

The figures for the past quarter and for 2022, which were in line with expectations, did not change that. The operating margin is expected to be 16 to 18 percent in 2023, the SAP rival announced on Tuesday. A few months ago, the company had announced a value of 25 to 30 percent. The stock then slipped by around two percent in Lang & Schwarz’s business.

Software AG predicted an increase in product sales of six to ten percent for the current year. Growth of 10 to 15 percent can be expected for recurring revenues.


Software AG struggled with a slump in profits in the second and third quarters of 2022. Despite the weak numbers, company boss Sanjay Brahmawar expressed optimism in a Reuters interview that the targets for 2022 would be achieved.

Thanks to a recovery in business in the fourth quarter, this worked. According to further information, organic product sales rose by 24 percent to 251.4 million euros and the operating profit margin improved by 3.8 percentage points to 23.1 percent. The organic recurring revenues would have reached 660 million euros at the turn of the year. That is ten percent more than twelve months earlier. On this basis, the company posted a seven percent increase in organic product sales to EUR 773.4 million for the full year and an increase in operating margin of 1.6 percentage points to 21.2 percent.

(Report by Hakan Ersen, edited by Scot W. Stevenson. If you have any questions, please contact our editorial team at [email protected] (for politics and economics) or [email protected] (for companies and markets). )

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