SHELLY GROUP’S STELLAR PERFORMANCE IN H1 2024

19 August 2024

Stock Exchange Stats

BSE Weekly Gainers & Losers

Market Overview (05 August – 09 August)

The main Bulgarian index SOFIX increased this week by 1.40% to 866.67 points. The broad index BGBX40 increased this week by 1.29% to 170.45 points and BGREIT increased this week to 197.63 points, up by 2.01%.

Corporate News

Shelly Group (SLYG) – announced their H1 2024 consolidated results. Consolidated sales increased 49% YoY to EUR 41.8mln (BGN 81.7mln). EBIT grew 54% YoY to EUR 10.8mln (BGN 21.1mln) and Net Profit increased 58.4% YoY to EUR 9.3mln (BGN 18.1mln). As expected the DACH region had the greatest contribution to the growth, adding 62.8% or EUR 21.5mln (BGN 42.1mln). The rest of the EU also marked a very positive growth, namely Italy, Spain, Belgium, Netherlands and Luxembourg and the expectations are that these markets will be key for the future growth of the company. The company plans on increasing the working capital with own funds to support the expected growth. The client base of Shelly Cloud increased to 1.5mln users (as of the end of 2023). With that, the annual targets for 2024 are confirmed – sales growth to EUR 105mln and EBIT growth to EUR 26mln.

Advance Terrafund (ATER) published results as of the end of July 2024. Current land ownership stands at 180,569 decares marking a growth of 1,694 decares over the last 6 months. The collected rent from the expected BGN 9.5mln for the 2023-2024 agricultural year stands at 29.3%.

Telematic Interactive (TIB) announced that they are calling a GSM on 13.09.2024 at the Black&White Club in hotel Millennium Sofia. Main points would be making a decision to distribute a dividend from the accumulated profit.

Economic News

• The current account surplus shrank to € 222.8 million in June from € 608 mln in the corresponding month of the previous year. The deficit widened for goods account (€ -177.9 mln vs € -73.2 mln in June 2023) and primary income (€ -380.8 mln vs € -168.2 mln). Meanwhile, the surplus shrank for services account (€ 662.7 mln vs € 709.8 mln) and secondary income (€ 118.8 mln vs € 139.7 mln). In the 12-month period ending June, the country recorded a current account deficit of € 486.2 mln, up from a deficit of € 424.9 mln last year.
• The inflation rate eased to 2.4% in July from 2.5% in the previous month, as prices slowed down for housing & utilities (2.5% vs 3.9%) and deflated for clothing & footwear (-1.5% vs 0.2%). In contrast, prices accelerated for restaurants & hotels (8.5 vs 7.5%), recreation & culture (2.4 vs 1.3%), transport (5.3% vs 4.9%) and alcoholic beverages & tobacco (5.5% vs 5.3%). Meanwhile, food and non-alcoholic beverages maintained the same rate of increase (1.5%).
• The economy expanded by 2% YoY in the second quarter of 2024, following a 1.7% rise in the previous 3 months. It marked the fastest pace of economic growth since the second quarter of 2023, as final consumption rose by 2.8%, and gross fixed capital formation surged by 6%. At the same time, exports of goods and services increased by 0.9%, and imports of goods and services by 2.5%.

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
Sofia 1000,
140 G. S. Rakovski Str.
Tel.: + 359 2 937 98 65
e-mail: info@sis.bg

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