Double digit growth for SAP

SAP, the financial software giant, has posted operating profit increases of 81% and profits before tax rises of 97%.

The first quarter results for the software suppliers, who provide technology to McDonalds, Pepsi Co and Apple, have surpassed analyst expectations.

SAP switched to IFRS reporting and under those rules operating profit increased a huge 81% to €557m compared to €307m for the same quarter in 2009. The company believes the 2009 figures were impacted by restructuring costs of €166m last year.

Non IFRS profits after tax increased 65% to €435. This equates to a IFRS increase of 97% from €196 in the first quarter of this year to €387 for Q1 2010.

“A solid top-line performance in combination with an increasing operating margin puts us on track to achieve our financial objective of profitable growth over the long term,” said Werner Brandt, CFO of SAP

The company expects 2010 results to show a non-IFRS software revenue increase of 4% - 8% from 2009 revenues of €8.2bn, compared to a 5% decline the previous year.

The company recently lossed its CEO Leo Apotheker after the chairman, Hasso Plattner, announced the business would go back to having two chief execs.

Plattner admitted mistakes were made by the management when they tried to increase support service fees by 22% last year.

Further reading:

Oracle bites into SAP market share

SAP chairman admits customer trust was lost