Speedy – Q3 2024 consolidated results

Sales, EBITDA and Net Profit increased yet again

• Revenues in Q3 2024 marked a 14.2% increase to BGN 376mln. The growth was driven nearly equally by both domestic and international sales. Unlike in 2023, where growth was primarily due to the growth in sales in Greece, now all 3 major markets – Bulgaria, Romania and Greece contributed. Domestic sales grew 12.5% to BGN 187.8mln, while international markets gained 14.4% to BGN 180mln.
• The number of transported shipments for the 9 months was 58.8 million, 9% more than the previous year. The price hike was below the inflation rate and this way the company hopes to stay competitive.
• OPEX increased by 15% YoY. The largest contributors are the expenses for external services and personnel services, which represent 85% of OPEX. External services expanded by 16.2% to reach BGN 208.5mln. Within that, the amount for subcontractors is 87% of external services, amounting to BGN 181.6mln. This is the account that is most directly related to the greater revenues as it is incurred per shipment and is fundamental to the growth in Greece and Romania.
• Personnel expense increased by 16% to BGN 84.4mln. The increased personnel expenses are part of the salary indexations in line with the overall macro environment. The investments in automation and employee productivity have compensated to a large degree the growth in this account.
• Amortization increased 16% due to the increased investments. This resulted in EBIT increasing 6.3% to BGN 34.3mln and EBITDA increasing 10.6% to over BGN 64mln.
• The profitability margins decreased, however. EBITDA margin dropped down to 17% from 17.6% last year. Net Profit margin dropped from 8.1% to 7.4% even if Net Profit rose 4.3% to BGN 28mln. The main reason are the abovementioned increases in external services and personnel expense.
• 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 currently is 2.82% and it would be hard to increase it considering the amount of cash left after operations. Which means that 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.