Another Quarter of Eclipsed Sales Records
Q1 2023 results
9 June 2023
Allterco continued the winning streak, where total revenues increased 57.6% YoY to reach over BGN 27.6m by Q1 2023. The real majority of sales is attributable to the Shelly brand devices (smart homes), which as of the year end made 95.4% of all sales (up from 94% in 2021), while the rest was for the Myki
tracking devices. Sales breakdown was not offered in the quarterly reports and we do not expect major changes.
EBITDA increased 55.7% to reach BGN 7.5mln, which is the result of the increased investments last year in the sales channels and RND processes.
Net profit of the group increased 51.5% despite the abovementioned investments and the Net margin dropped minimally by just 0.86% to 21.42%.
The total user pool of Shelly Cloud, the app for the Shelly device, increased 26.6% for the last 3 months to reach 857,000.
The expectations for 2023 are to increase revenues by 51% to BGN 141mln (BGN 94mln at year end) as well as EBIT by 63% to BGN 33mln (BGN 22mln in 2022). As for mid-term plans, the management expects revenues to increase by 43% p.a. to reach over BGN 400 mln and EBIT to grow at 48% to get
to the BGN 100mln per year by 2026.
Geographically, the DACH region remains the most important for the company as it generates over 51% of the revenues in 2022. According to the company, the investments in the sales channels in that market yielded the most significant results. The forecasts for it are to continue recording similar growth in 2023 as well as, perhaps at a slightly diminished growth rate till 2026.
The expectations are that the Scandinavian markets will turn to be a major growth factor, followed by the UK, France, Italy and Spain.
The management has great hope for the new generations of devices, which will be smaller and more effective. They will also use their own Shelly microchips and their native operating system Shelly OS.
The administrative expenses grow over 59% to reach BGN 6.8mln primarily due to the growth of External services (increasing 177% to BGN 2.5mln) and Personnel expense (increasing 33% to BGN 4mln). Both accounts are important for the growth strategy and the higher expenditure there is rather a sign of investments in sales channels, rather than inefficiencies.
The company remains very liquid and stable with cash representing over 13x total debt and 38x short term debt.
BGN 0.25 per share is the planned dividend for 2022. This will be decided on the general meeting on 12 June 2023.
Ivaylo Valchev
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
Sofia International Securities
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Tel.: + 359 2 937 98 65
e-mail: info@sis.bg
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