SD Worx surpasses $1 billion revenue in 2023
ANTWERP, BELGIUM — Human resources solutions provider SD Worx reported a consolidated revenue of €1.058 billion ($1.14 billion), up 10% from the previous year’s €962.1 million ($1.04 billion), marking a significant milestone for the company.
This growth is attributed to the company’s robust European expansion strategy, particularly through organic growth.
The company’s normalised EBITDA saw a substantial rise of 32.8%, climbing from €136.7 million ($148 million) in 2022 to €181.6 million ($196 million) in 2023. However, despite the revenue and EBITDA growth, the consolidated net profit experienced a decrease, falling from €81 million ($87 million) in 2022 to €70.1 million ($75 million) in 2023.
This decline is partly due to the exceptional net profit growth in 2022, which was influenced by the capital gain from the sale of SD Worx Real Estate NV’s real estate portfolio to WorxInvest.
SD Worx’s People Solutions entity, which offers payroll, core HR, talent, and workforce management solutions, was particularly successful, contributing significantly to the revenue increase.
However, the company also faced challenges, such as high indexations on salary costs and difficult economic conditions in the flexible work sector.
The company incurred restructuring and integration expenses totaling €9.5 million ($10 million), reflecting strategic organizational changes and the integration of recent acquisitions. Acquisition and transaction costs also increased, related to earn-out remeasurements and M&A transaction costs.
An impairment charge of €2.7 million ($2.9 million) was recognized on the goodwill of the Staffing & Career Solutions unit, reflecting the challenging macroeconomic conditions. The financial results showed a loss of €10.2 million ($11 million), primarily due to interest costs and financial charges on lease liabilities.
Despite these challenges, SD Worx remains committed to its growth strategy, leveraging technology and local expertise to provide user-friendly HR solutions across Europe.
Filip Dierckx, chairman of the board of directors at SD Worx, expressed gratitude to the team and customers for reaching the billion-euro revenue mark. He also highlighted the addition of CVC as an external minority shareholder, noting their valuable contribution to the company’s board of directors and their expertise in M&A and digitalization.
Meanwhile, SD Worx CEO Kobe Verdonck thanked employees and customers for their commitment and trust.
“In 2024, we will continue to execute our growth strategy to achieve our ambition: being the trusted leading European provider of HR solutions for all organizations and their workers,” he added.
