Shelly Group Q1 Prelim Reports Surpass Targets

Market Overview (07 Apr – 11 Apr)
The main Bulgarian index SOFIX increased this week by 0.40% to 882.88 points. The broad index BGBX40 decreased this week by 0.39% to 169.02 points. BGREIT decreased by 0.63% this trading week to 214.51 points.
Corporate News
Webit Investment Network (WIN) announced that they will be increasing their capital via SPO. The new shares will have emission value of BGN 1.25 compared to current market price of BGN 1.39. WIN has been outperforming many of its peers and has been in the top 1% in the world for similar investment funds when compared for revenue growth of the portfolio companies. The proceeds are intended to be used for additional investments and expansion of the portfolio. Up to 12,364,797 shares will be offered, hoping to raise BGN 15.5mln. The issue will be successful if 1,564,664 shares (BGN 1.96mln) are purchased.

Shelly Group (SLYG) announced that the preliminary results for Q1 show that the revenues from Shelly products and related services have reached EUR 26.5mln, which is a 29% increase compared to the same period last year. With that, the company significantly surpassed the expectations for Q1 of 25% increase. Additionally, they issued a statement that a possible escalation on the tariff issue with regards to the US market will have a very limited impact on the company considering that this market is still very little for SLYG.

 Economic News

ü  Retail sales rose 2.4% YoY in February. This marks the softest rise since May 2024, as sales growth eased for non-food products (5.1% vs. 11% in January) and automotive fuel (11.5% vs. 15.5%). Meanwhile, trade in food, beverages, and tobacco declined by 2.1%, following a 3.9% rise in January. On a seasonally adjusted monthly basis, retail sales dropped 1.7%, the sharpest decline since April 2023, slipping further from a revised 0.9% fall in the previous period.

ü  Industrial production dropped by 4.6% YoY in February. This marked the third consecutive month of decline in industrial activity and the steepest in the sequence, mainly due to a sharp decrease in manufacturing output (-7.1% vs -0.3%). Meanwhile, production recovered significantly for electricity, gas, steam & air-conditioning supply (11.2% vs -13.6%), while it declined less for mining and quarrying (-1.8% vs -4.5%). On a seasonally adjusted monthly basis, industrial activity went down by 0.7% in February, slowing from an upwardly revised 2.1% loss in the preceding period.

ü  Construction output growth eased to 7.4% YoY in February, from an upwardly revised 8.1% increase in the previous month. The slowdown was due to moderated growth for civil engineering works (9.7% vs 11.0% in January) and specialized construction activities (7.6% vs 8.8%). Meanwhile, production growth rose slightly for building construction (5.8% vs 5.6%).

ü  The trade deficit rose to BGN 969.1 million in February 2025 from BGN 891.3 million in the same month last year, as exports dropped while imports rose. Exports decreased by 1% year-on-year to BGN 6,619.8 million due to lower sales to the EU (-2.7%). However, exports to non-EU countries grew by 2%. Meanwhile, imports edged up by 0.2% to BGN 7,588.9 million, driven by increased purchases from non-EU countries (4%). Imports from the EU declined by 2.2%. In the January to February period, the country’s trade gap widened sharply to BGN 2,943.6 million from BGN 1,935.6 million in the corresponding period a year ago.

 

Full report can be read here.