Speedy AD – 2025 Q1 cons. review – Growing competition limits growth potential

Q1 Consolidated Results

• Revenues in Q1 2025 marked a 6.1% increase to BGN 135mln. The rise in sales was driven by the growth in domestic in the domestic market by 6.9% to BGN 66.8mln. The revenues from foreign markets was at the same level increasing just 0.5% due to higher competition.
• The number of transported shipments was 19.8 million, 7% less than the previous year. The decrease is driven by the drop in foreign markets (Greece).
• OPEX increased by 5.1% YoY to BGN 117.8mln. Within that, the expenses for external services, which is the subcontractors in foreign markets, increased just 1% as a result of the lower amount of parcels and the use of external parties for the deliveries. Personnel expenses increased 12.6% to BGN 30.4mln stemming from the increased salaries and the larger workforce to handle the domestic market. Salaries indexations were needed considering the overall macro environment. The investments in automation and employee productivity have compensated to a large degree the growth in this account.
• Amortization increased 14.6% due to the increased investments. The overall drop in OPEX, however, resulted in EBIT increasing 12.9% to BGN 15.6mln and EBITDA increasing 13.5% to BGN 25.2mln.
• The profitability margins marked a slight increase. EBITDA margin increased from 19.7% to 21.1%. Net Profit margin increased from 10.5% to 11% and Net Profit increased 10.2% to BGN 14.8mln. The main reasons are the very low increase in external services already mentioned, the 6.1% drop in materials expense to BGN 4.3mln and the 1.9% drop in other operational expenses to BGN 1.5mln.
• To a great degree it is understood that the company will be reaping benefits from process and cost optimizations at a decreased rate and that they will reach market saturation soon considering their competition. Their dividend yield for 2024 was 2.88% and it would be hard to increase it considering the amount of cash left after operations. The stock price movement has shown this sentiment, indicating a steady downward move from BGN 220 in October 2024 to BGN 190-200 levels currently. The only alternative for them would be to look for other markets one way or another in the next couple of years. On the other hand, the introduction of staff-less delivery premises by some parcel delivery companies and thus save on personnel cost might be a way to postpone the need for that with a couple of years.

Full report can be accessed here.