Opportunity For Growth And Entering New Markets
Q3 2022 results
21 March 2023
Allterco announced a 49.8% YoY increase in consolidated revenues from sales of IoT devices and related services to BGN 57.7 mln (EUR 29.5 mln) in the first nine months of 2022. Revenues from sales of IoT devices under the Shelly brand increased by 51.0% to BGN 54.5 mln (EUR 27.8 mln), followed by revenues from sales of MyKi tracking devices, which increased by 32.5% to BGN 3.2 mln (EUR 1.6 mln). Largest markets for Shelly devices are Germany and Italy, followed by Spain, Portugal, Netherlands, Austria and Belgium.
With these revenues, Allterco exceeded the budget and forecast for the nine months of 2022. Compared to the nine months of 2021, the Company’s growth rate was increasing, in line with management’s expectations for an annual growth rate of 43% for 2022.
At the end of the reporting period, the total costs increased by 67.5% compared to the same reporting period of the previous year. This increase was largely due to a 91.0% increase in salary and social security, external service costs which increased by 51.5% and other operating expenses, which increased by 376%. The increase in other operating expenses was primarily due to write offs of receivables, write-offs of receivables and write-offs of development costs.
The largest part in the reported expenses was occupied by salary and social security expenses with 53.2%, followed by external services with a part of 19.2%, and by sales expenses with 11.6%.
Based on the successful development of the business and the solid volume of orders, Alterco raised its initial forecasts for 2022. The company expects revenue growth to EUR 45-46 mln (initially EUR 43.5 mln) and EBIT to EUR 10–10.5 mln (initially EUR 9.6 mln) in the financial year 2022.
The General Meeting of the Shareholders decided that the company will acquire 100% of the capital GOAP Racunalniski inzeniring in avtomatizacija procesov d.o.o., Slovenia for a price of up to EUR 5.5 mln.
To accelerate its international expansion, Alterco chose Dublin, Ireland, internationally center of IT development talent, to base its newest center for research and development.
Atanas Videv
Equity Analyst
Tel.: +359 2 937 9862
e-mail: valchev@sis.bg
Svetozar Abrashev
Senior Managing Partner
Tel.: +359 2 937 9869
e-mail: abrashev@sis.bg
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