Bechtle is progressing towards achieving its annual goals
Thomas Olemotz, the CEO of German IT services and technology provider Bechtle, has announced that he will not be renewing his contract when it expires at the end of 2026. This decision is part of a planned leadership transition within the company.
In a statement, Olemotz stated that he is generally satisfied with the company's performance and the trend is positive. However, he believes that it is time for a new leader to take the reins.
The CEO will have served on the board for 20 years by the end of his tenure, making him one of the longest-serving CEOs in the industry. Olemotz will be 64 years old in 2026.
Despite the upcoming leadership change, Bechtle remains focused on its financial goals. The company aims for a 5% increase in revenue and stable sales for the full year.
The CFO duties will be taken over by Fabian Gratzer starting in July 2024, ensuring continuity in the company's financial leadership before Olemotz's departure. Gratzer has been with Bechtle since 2011 and has been the CFO since 2016.
In addition to the leadership transition, Bechtle has also made some changes in its management team. Christian Jehle, who was previously with competitor Computacenter, has joined Bechtle as the new CFO starting in July 2023.
The company's financial performance for the first half of 2023 has been mixed. Profit before taxes in the second quarter was 66.8 million euros, 20% lower than the previous year. However, revenue, including software sales, increased by 5% to 1.93 billion euros. Sales rose by 0.8% to 1.49 billion euros.
Despite the shortfall in profit, Olemotz is optimistic about the company's prospects for the rest of the year. He is banking on orders from the public sector to drive growth in the second half of 2023.
The developments in the second quarter of 2023 have put Bechtle back on track, according to Olemotz. He cited July of 2023 as a positive indicator for the company.
Despite initial forecasts of earnings before taxes to be within 5% of the previous year's level of 345 million euros, Bechtle is still some way off the growth figures it set for itself. The company had initially forecast earnings before taxes to be around 360 million euros for the year.
Despite the challenges, shares of Bechtle rose by as much as 12% to over 41 euros on Friday, indicating investor confidence in the company's future.
In conclusion, Bechtle is undergoing a leadership transition with CEO Thomas Olemotz not renewing his contract in 2026. The company is still aiming to meet its sales and profit targets for the year 2023, despite a shortfall in profit for the first half of the year. The company is optimistic about its prospects for the rest of the year, particularly in the public sector.
Bechtle, in its ongoing business operations, continues to prioritize its finance goals, aiming for a 5% increase in revenue and stable sales for the full year of 2023, despite a 20% decrease in profit before taxes for the second quarter.
The transition in the company's leadership, with the departure of CEO Thomas Olemotz in 2026, will not affect Bechtle's focus on its financial objectives and growth targets.
