Zalaris' Q2/17 revenues were up 33.2% to NOK 126.9 million (incl. sumarum AG which was acquired in the quarter and included from 18 May), with an EBIT margin of 5.7%. First half-2017 pro forma revenues for the combined entity are 15.4% higher compared to the same period in 2016.
Zalaris, a leading provider of payroll and HR services, announced mid-May the acquisition of sumarum AG. Through the acquisition, Zalaris is gaining an immediate access into Germany, Europe’s largest economy with more than 80 million people and a high concentration of medium-size and large international companies.
“Q2 of 2017 has been a milestone quarter for Zalaris staking out a new direction for growth. We are also happy to deliver continued growth as new customers have come aboard in this quarter", says Hans-Petter Mellerud, Zalaris’ CEO and founder.
The acquisition also introduces the company to other German speaking countries on the continent, notable Switzerland and Austria.
Growth continues, both organically and through the acquisition of sumarum. Sales increased 33.2% to NOK 126.9 million in Q2/17, including sumarum. On a stand-alone basis, Zalaris grew 7.9%, booking revenues of NOK 102.9 million for the quarter.
Profit in Q2 was marked by the usual seasonal variations for both Zalaris and sumarum. After a strong Q1/17, EBIT, excluding other costs, reached NOK 7.2 million or a profit margin of 5.7% in the quarter. NOK 10.8 million in other costs were related to the acquisition of sumarum.
Continued growth for cloud
The cloud services business maintains a trend of significant revenues growth up to NOK 18.9 million (NOK 6.0 million) in Q2/17. Cloud services now represent 14.9% of total revenues.
“All customers now require cloud solutions, boosting demand and activity for our Cloud business. We believe this trend will continue and perhaps even gain further momentum in the coming years”, Mellerud says.
Zalaris’ Cloud business added five-year contract to deliver SAP SuccessFactors-based cloud services to China Euro Vehicle Technology, a Sweden-based automotive innovator with an estimated 2 000 employees and contractors. Statkraft chose Zalaris to deliver solutions and services to more than 3 000 employees in four countries.
New colleagues in Germany
On 26 April Zalaris announced the acquisition of the leading German HR outsourcing company sumarum AG. The DACH area, comprising Germany, Austria and Switzerland, now represents the second most important geographical market for Zalaris after Norway (in Q3/17).
Pro forma revenues for the combined entity in H1/17 of NOK 305.6 million represents a 15.4 per cent growth compared to 50% of the FY 2016 as presented in the information memorandum describing the transaction.
“Whether looking internally at our operations or externally at market opportunities, we have never been in a better position to become a leading international provider of innovative cloud-based payroll and HR services”, Mellerud states.
All integration efforts are progressing well in accordance with overall plans.
Hans-Petter Mellerud, CEO and founder
Mobile: +47 928 97 276
Nina Stemshaug, CFO
Mobile: +47 982 60 394
Zalaris excels in delivering comprehensive cloud- based HR and payroll services. The company is certified as a SAP Business Process Outsourcing (BPO) Partner and is a leading SAP Human Capital Management (HCM) and SuccessFactors consulting partner. Founded in 2000, Zalaris today operates in Denmark, Estonia, Finland, India, Latvia, Lithuania, Norway, Poland, Sweden and Germany, including local-language service centers with extensive expertise in HR- related laws and regulations. Learn more about Zalaris at www.zalaris.com