Asseco on the wave of growing role of digitization – record-breaking results for 2021
In 2021, Asseco generated sales revenues of PLN 14.5 billion, which marked an increase by 19% versus 2020. Sales of proprietary products and IT services increased by 17% year-on-year to PLN 11.3 billion. Consolidated operating profit went up by 20% to PLN 1.5 billion. Net profit attributable to shareholders of the parent company amounted to PLN 468 million, after an increase by 17%. The Group recorded significant improvement of results in all segments and sectors of its operations.
Last year, non-IFRS operating profit amounted to PLN 1.8 billion, which marked an increase by 21%. In turn, non-IFRS net profit stood at PLN 516 million, up by 14% from 2021.
The Group generated better results across all of its operating segments, which was possible thanks to its focus on supporting customers in the face of the pandemic and capitalizing on opportunities associated with the acceleration of digitization processes in companies and institutions. In 2021, foreign markets represented by the Formula Systems and Asseco International segments together accounted for 89% of the Group's total revenues. Sales of the Formula Systems segment increased by 23% to PLN 9.3 billion, while operating profit improved by 24% to PLN 760 million. In turn, revenues of the Asseco International segment increased by 13% to PLN 3.6 billion, while its operating profit improved by 12% to PLN 433 million. Sales of the Asseco Poland segment reached PLN 1.6 billion, up by 9% year on year, while its operating profit improved by 23% to PLN 263 million.
Asseco's revenues, which are very well diversified by sectors, were distributed as follows in 2021: general business - 40%, banking and finance - 35% and public institutions - 25%.
2021 was another very good year for Asseco. In the face of the continuing coronavirus pandemic, the Asseco team demonstrated great commitment, flexibility, responsiveness to customer needs, and adaptation to rapidly changing market demands. We consistently pursued a strategy of geographical, sectoral and product diversification of our business. We focused on selling our proprietary software, providing related services, and on increasing the scale of our business through acquisitions. Last year we were joined by 18 new companies operating in the Israeli, European, and American markets. We also strengthened our position in the areas of cyber security and cloud, which have taken on particular importance after 2020. All this translated into strengthening our position in all segments and business sectors. Therefore, we achieved record-breaking financial results, both at the level of revenues and profits, while maintaining profitability, said Adam Góral, President of the Management Board of Asseco Poland.
Asseco's consolidated order backlog for 2022 in variable exchange rates in the areas of proprietary software and services is currently worth PLN 9.8 billion and is 28% higher than in the same period last year. In fixed exchange rates, in which the backlog for 2021 was converted, the increase amounts to 18% to PLN 9.0 billion.
In 2022 our goal will still be to maintain Asseco's leading position in banking, insurance, energy, telecommunications, healthcare and public administration. All the time we focus on further development in the area of proprietary products and services. Apart from sector solutions, we will also reinforce our position in ERP systems, payments, and trust services. We will continue to invest in the development of cloud products and cyber security services. We will continue to grow not only organically, but also through acquisitions. Of course, when thinking about the development prospects for 2022, one has to mention the war in Ukraine, the long-term effects of which are difficult to predict today. The first days of the war have already shown how important it is to take care of the country's cyber security and to maintain the continuity of key systems and critical infrastructure - added Adam Góral.
Asseco consistently builds shareholder value and shares its profits with them; so far it has paid out PLN 2.7 billion in dividends. This year, the Company's Management Board is recommending a dividend payment of PLN 279 million from the 2021 profit, which translates into PLN 3.36 per share and constitutes 60% of the Group's consolidated net profit.
Non-IFRS figures including adjustments for: the cost of amortization of intangible assets recognized under the combination settlement (PPA), the costs of share-based payment transactions with employees (SBP), the costs and financial revenues resulting from the transactions of purchase and sales of companies (M&A) and tax effects associated with them.