Bechtle Makes Significant Progress Towards Yearly Goals
Bechtle, the German IT company, is set for a change in leadership and a promising future, according to CEO Thomas Olemotz.
In a recent announcement, Olemotz revealed that the company is back on track for growth, with a positive trend observed in July. He also shared that the public sector orders are expected to pick up after the summer break, driving growth in the second half of the year.
Olemotz revealed that he will be stepping down to make way for the younger generation. His designated successor is Christian Jehle, who is currently the CFO at Computacenter in the UK. Jehle’s appointment is part of a planned and careful succession strategy by Bechtle, with Olemotz expected to retire in summer 2027 after 20 years at the company.
Jehle’s contract will run until the end of 2028, allowing him to be well integrated before potentially taking over CEO responsibilities. Jehle brings with him extensive experience in finance, having previously held similar roles at Experian and Finastra, also in the UK.
The second quarter results showed a slight increase in sales, with revenue, including software sales, for the quarter rising 5% to 1.93 billion euros. Profit before taxes, however, was 66.8 million euros, 20% below the previous year's level. Despite this, Olemotz aims to reduce and close the gap created in the first half of the year by the end of the year.
Bechtle had forecasted earnings before taxes to be 5% below or above last year's level of 345 million euros. The company aims for revenue growth of up to 5% and stable sales for the full year. The positive trend is attributed to Bechtle's second quarter performance.
However, earnings before taxes for the year are expected to be in the lower half of the expected range, according to Olemotz. This is due to the continued impact of the pandemic and supply chain disruptions.
Despite these challenges, Bechtle's stock increased by up to 12% due to optimism about the second quarter results. The company is aiming to achieve its revenue and profit targets for the year.
Olemotz will be 64 years old in 2026 when he leaves Bechtle, after two decades of service. He will not renew his contract, which expires at the end of 2026. Sales for the second quarter rose 0.8% to 1.49 billion euros.
In conclusion, Christian Jehle is an experienced finance executive with international experience in IT and software services companies, brought in to support and eventually continue the leadership at Bechtle following Thomas Olemotz. Despite a slight dip in profit before taxes, the company remains optimistic about its future growth prospects.
Christian Jehle's appointment as the successor to Thomas Olemotz signifies a strategic shift in Bechtle's leadership, bringing extensive finance experience from his past roles in technology-focused businesses like Experian and Finastra. The company remains optimistic about its future growth prospects in the business and technology sector, aiming to achieve its revenue and profit targets despite the challenges presented by the pandemic and supply chain disruptions.
