Milestone quarter, new markets opened up
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",
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
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
"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
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