EQS-News: Allterco in 9M/22 with revenue and earnings above expectations on stable cost base

Allterco in 9M/22 with revenue and earnings above expectations on stable cost base
 

• Consolidated operating revenue increases by 55.0% to BGN 60.5 million (EUR 30.9 million)*
• EBITDA at stable cost base with growth of 20.0% to BGN 14.5 million (EUR 7.4 million)* despite targeted increased investments in sales and R&D structures
• EBIT increases to BGN 13.7 million (EUR 7.0 million)*
• Net profit at Group level despite negative special effect from write-off of a receivable at BGN 11.7 million (EUR 6.0 million)* compared to BGN 10.0 million (EUR 5.1 million) in 9M/21
• Increased guidance for full year 2022 confirmed

Sofia / Munich, 14 November 2022 Allterco JSCo (ticker A4L / ISIN: BG1100003166) ("Allterco"), a provider of IoT and smart home products based in Sofia, Bulgaria, posted stronger than expected growth in 9M/22. With better-than-expected performance across all product categories, energy consumption meters in particular saw above-average demand. MyKi tracking devices again achieved growth rates above pre-pandemic levels.

Group figures (unaudited)

Note: The figures for the nine-month period 2022 are unaudited. Rounding differences may occur.

Allterco achieved a 55.0% increase in consolidated operating revenues to BGN 60.5 million (EUR 30.9 million)* in 9M/22. Revenue from the sale of goods and productions amounted to BGN 57.8 million (EUR 29.6 million)*, up 50.1%. Operating earnings before interest, taxes, depreciation, and amortization (EBITDA) increased by 20.0% to BGN 14.5 million (EUR 7.4 million)* despite targeted increased investments in sales and R&D structures. Earnings before interest and taxes (EBIT) increased by 22.9% to BGN 13.7 million (EUR 7.0 million)*. Net result at the Group level was BGN 11.7 million (EUR 6.0 million)* compared to BGN 10.0 million (EUR 5.1 million) in the prior-year period, despite a negative special effect from the write-off of a receivable.

With an equity ratio of 90.4% as of 30 September 2022, Allterco enjoys a solid balance sheet (31 December 2021: 90.6%). Here, in addition to the unappropriated profit, the reduction in non-current bank loans by 19.3% to BGN 1.6 million (EUR 0.8 million)* as well as the payout of a dividend of BGN 1.8 million (EUR 0.9 million) were particularly noticeable.

Cash flow from operating activities with a cash outflow of BGN 4.9 million (EUR 2.5 million)* compared to a cash inflow of BGN 4.7 million (EUR 2.4 million) in 9M/21 reflects in particular increasing inventories matching higher sales revenue and advance payments to suppliers to proactively address potential delays in the supply chains. Cash and cash equivalents decreased accordingly to BGN 24.7 million (EUR 12.6 million)* as of 30 September 2022 compared to BGN 26.0 million (EUR 13.3 million) as of 31 December 2021, providing a sufficient basis for financing further growth.

For the full year 2022, the management confirms the guidance raised in an ad hoc announcement on 3 November 2022 of an increase in revenues from the sale of goods and productions to EUR 4546 million (2021: EUR 30.4 million) and earnings before interest and taxes (EBIT) between EUR 1010.5 million (2021: EUR 9.6 million).

Dimitar Dimitrov, Co-CEO of Allterco JSCo, commented on product development: The great appreciation by our customers is the well-deserved reward for our relentless efforts to continuously improve our products, to bring solution-driven new applications and devices to market again and again, and to contribute to seamless integration in the Smart Home in an increasingly connected world. Interaction is particularly important to us, whether through the continuous improvement of user interfaces and user experience or in support. This gives us a development lead of two to three generations over our competitors' products. We are already looking forward to presenting a variety of new innovative products at CES in Las Vegas in early January 2023.

Wolfgang Kirsch, Co-CEO of Allterco JSCo, added on business performance: We are particularly pleased that we grew in all product categories and in all regional markets. As such we exceeded our own expectations. So based on a solid order backlog and a strong start to the final quarter of 2022, we have raised our full-year guidance for 2022 after the end of the reporting period. In this context, our investments in expanding our global sales teams, increasing R&D capacity, and developing the market for professional users are already paying off. At the same time, we have our costs fully under control in the face of multiple economic challenges. Based on the continued demand for energy-saving solutions, we expect a successful year-end business and confirm our raised targets for the full year.

The unaudited nine-month report is available in the Investor Relations section of the Company's website at allterco.com.

* EUR/BGN exchange as of 14 November 2022 1 EUR = BGN 1.95583

Earnings Call:

Co-CEOs Dimitar Dimitrov and Wolfgang Kirsch will comment on the unaudited consolidated 9M 2022 results by means of a webcast presentation on 15 November 2022, 09.00 CET (10.00 EET). The webcast/call will be held in English.

Please register to participate in the webcast/call at:
Allterco JSCo Earnings Call 9M 2022.

For further information, please visit allterco.com

About Allterco

Allterco JSCo is a technology holding company that stands for innovation through the development, manufacture, and distribution of high-quality IoT products. End users and their needs are always at the heart of development. Allterco was founded in Bulgaria and works with a team of young, talented developers who are dedicated to producing competitive and user-friendly products. The Group consists of 5 subsidiary companies and has offices in Bulgaria, China, USA and Germany. Allterco's products have already conquered over 100 markets. Allterco JSCo has been listed on the Bulgarian Stock Exchange since December 2016 and on the Frankfurt Stock Exchange as of November 2021 where its shares are traded under GSIN A2DGX9, ISIN BG1100003166, ticker A4L.

Contact Investor Relations

CROSS ALLIANCE communication GmbH
Sven Pauly
Phone: +49 89 125 09 0331
Mail: sp@crossalliance.de
www.crossalliance.de