Zalaris ASA: A Strategic Vision for Sustainable Growth
June 18, 2025, 12:50 pm
Location: United States, California, Palo Alto
Employees: 10001+
Founded date: 1972
Zalaris ASA stands at a crossroads, reaffirming its ambitious revenue target of NOK 2 billion by 2028. This Norwegian company, a player in payroll and HR transformation, has recently completed a strategic review. The findings are clear: the current path is the best route to long-term value creation.
The strategic review, conducted with the help of ABG Sundal Collier, explored various options. After careful consideration, the Board of Directors decided to stick with the existing strategy. This choice is not made lightly. It reflects a solid foundation built on recent operational improvements. The past year has seen Zalaris achieve above-target growth and profitability.
In the first quarter of 2025, Zalaris reported a remarkable 19% increase in revenue year-over-year. This growth trajectory is not just a blip; it marks the seventh consecutive quarter of strong performance. The annualized run-rate has reached approximately NOK 1.5 billion, a milestone achieved a full year ahead of schedule. The adjusted EBIT margin also saw a significant boost, climbing to 14.1%. This indicates a robust business model, one that is not just surviving but thriving.
The company’s CEO, Hans-Petter Mellerud, emphasizes the momentum. Zalaris is not just aiming for NOK 2 billion in revenue; it is also focused on enhancing EBIT margins. The ambition is clear: organic growth will drive this journey. The company is committed to a cash conversion target of 70%, with plans to distribute 50% of its profit before tax to shareholders. This commitment signals a strong focus on shareholder value.
Zalaris is not just about numbers. It aims to be a leader in payroll and HR transformation on a global scale. The company is deepening its partnership with SAP, leveraging cloud-based solutions and artificial intelligence. This strategic move positions Zalaris to better serve European customers with scalable solutions. The emphasis on local and industry-specific needs showcases a tailored approach, one that resonates in a diverse market.
However, the journey is not without challenges. The company has faced low daily trading volumes, leading to price volatility. This situation complicates stable valuations for shareholders. The Board is aware of this issue and is committed to improving share liquidity. By enhancing marketability and trading dynamics on the Oslo Stock Exchange, Zalaris aims to create a more stable environment for its investors.
The strategic review also considered acquisition proposals. However, the Board concluded that these offers did not reflect Zalaris’ true value, especially in light of its recent financial performance. This decision underscores a confidence in the company’s trajectory. Zalaris believes in its potential to unlock superior value for shareholders.
The commitment to long-term value creation is evident. Zalaris is not just chasing short-term gains; it is building a sustainable future. The company’s scalable business model, combined with sustained revenue growth, positions it well for the future.
As Zalaris moves forward, it remains focused on its core mission. The goal is to enhance operational efficiency while delivering superior value to stakeholders. The strategic review has provided clarity and direction. With a proven strategy and positive momentum, Zalaris is poised to continue its upward trajectory.
In conclusion, Zalaris ASA is a company on the rise. Its reaffirmed revenue target of NOK 2 billion by 2028 is ambitious yet achievable. The strategic review has reinforced the belief in its current path. With strong financial performance, a commitment to innovation, and a focus on shareholder value, Zalaris is ready to navigate the complexities of the market. The future looks bright for this Norwegian powerhouse.
Zalaris is not just a company; it is a beacon of growth in the payroll and HR transformation landscape. As it charts its course, stakeholders can expect a journey marked by resilience, innovation, and sustainable value creation. The road ahead may be challenging, but Zalaris is equipped to meet it head-on. With a clear vision and a dedicated team, the company is set to redefine success in its industry.
The strategic review, conducted with the help of ABG Sundal Collier, explored various options. After careful consideration, the Board of Directors decided to stick with the existing strategy. This choice is not made lightly. It reflects a solid foundation built on recent operational improvements. The past year has seen Zalaris achieve above-target growth and profitability.
In the first quarter of 2025, Zalaris reported a remarkable 19% increase in revenue year-over-year. This growth trajectory is not just a blip; it marks the seventh consecutive quarter of strong performance. The annualized run-rate has reached approximately NOK 1.5 billion, a milestone achieved a full year ahead of schedule. The adjusted EBIT margin also saw a significant boost, climbing to 14.1%. This indicates a robust business model, one that is not just surviving but thriving.
The company’s CEO, Hans-Petter Mellerud, emphasizes the momentum. Zalaris is not just aiming for NOK 2 billion in revenue; it is also focused on enhancing EBIT margins. The ambition is clear: organic growth will drive this journey. The company is committed to a cash conversion target of 70%, with plans to distribute 50% of its profit before tax to shareholders. This commitment signals a strong focus on shareholder value.
Zalaris is not just about numbers. It aims to be a leader in payroll and HR transformation on a global scale. The company is deepening its partnership with SAP, leveraging cloud-based solutions and artificial intelligence. This strategic move positions Zalaris to better serve European customers with scalable solutions. The emphasis on local and industry-specific needs showcases a tailored approach, one that resonates in a diverse market.
However, the journey is not without challenges. The company has faced low daily trading volumes, leading to price volatility. This situation complicates stable valuations for shareholders. The Board is aware of this issue and is committed to improving share liquidity. By enhancing marketability and trading dynamics on the Oslo Stock Exchange, Zalaris aims to create a more stable environment for its investors.
The strategic review also considered acquisition proposals. However, the Board concluded that these offers did not reflect Zalaris’ true value, especially in light of its recent financial performance. This decision underscores a confidence in the company’s trajectory. Zalaris believes in its potential to unlock superior value for shareholders.
The commitment to long-term value creation is evident. Zalaris is not just chasing short-term gains; it is building a sustainable future. The company’s scalable business model, combined with sustained revenue growth, positions it well for the future.
As Zalaris moves forward, it remains focused on its core mission. The goal is to enhance operational efficiency while delivering superior value to stakeholders. The strategic review has provided clarity and direction. With a proven strategy and positive momentum, Zalaris is poised to continue its upward trajectory.
In conclusion, Zalaris ASA is a company on the rise. Its reaffirmed revenue target of NOK 2 billion by 2028 is ambitious yet achievable. The strategic review has reinforced the belief in its current path. With strong financial performance, a commitment to innovation, and a focus on shareholder value, Zalaris is ready to navigate the complexities of the market. The future looks bright for this Norwegian powerhouse.
Zalaris is not just a company; it is a beacon of growth in the payroll and HR transformation landscape. As it charts its course, stakeholders can expect a journey marked by resilience, innovation, and sustainable value creation. The road ahead may be challenging, but Zalaris is equipped to meet it head-on. With a clear vision and a dedicated team, the company is set to redefine success in its industry.