Frankfurt am Main — German software giant SAP said on Tuesday it would launch a billion-euro restructuring plan after profits stagnated in 2018, while insisting it was on track to grow revenues and earnings this year. Net profit added just 1% last year to some €4.1bn, but operating, or underlying profit at the Walldorf-based group surged 17%, to €5.7bn, on revenues up 5% at €24.7bn. The result “sets us up perfectly for continued strong, profitable growth in 2019 and beyond”, CFO Luka Mucic said in a statement. SAP said it plans to spend between €800m and €950m “to further simplify company structures and processes”. Executives aim to realise “a minor cost benefit” this year, before slashing annual outgoings by up to €850m from 2020. The programme comes on top of the group’s recent $8bn acquisition of Qualtrics, which CEO Bill McDermott said meant SAP was “poised to revolutionise the business software industry”. The Californian firm is an industry leader in the comparatively new field...

BL Premium

This article is reserved for our subscribers.

A subscription helps you enjoy the best of our business content every day along with benefits such as exclusive Financial Times articles, ProfileData financial data, and digital access to the Sunday Times and Times Select.

Already subscribed? Simply sign in below.



Questions or problems? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now