EQS-News: Shelly on a continuous growth path in the nine-month period 2024

Shelly on a continuous growth path in the nine-month period 2024
 

• Group revenue grows by 47.2% to EUR 65.0 million (BGN 127,0 million)
• EBIT increases by 29.2% to EUR 15.4 million (BGN 30,0 million)
• Consolidated net profit grows by 38.5% to EUR 13.8 million (BGN 26.9 million)
• Cash flow as a driver for R&D, working capital and product expansion
• Growth in Shelly Cloud user base to around 1.7 million (31 December 2023: 1.3 million)
• 1st Capital Markets Day highlights achievements on the way to meeting medium-term guidance
• Outlook for 2024 reaffirmed: Revenue growth to EUR 105.0 million and increase in EBIT to EUR 26,0 million

Sofia / Munich, 13 November 2024 – Shelly Group AD (Ticker SLYG / ISIN: BG1100003166) (“Shelly Group”), a provider of IoT and smart building solutions based in Sofia, Bulgaria, has continued to grow profitably in 9M 2024 by internationally expanding its distribution channels and addressable customer base, as well as by broadening its product and service portfolio. With a revenue performance above the market average in all sales regions, the German-speaking countries continued to make the largest contribution to growth with an increase of 47.4% to EUR 32.5 million (BGN 63.6 million). The international expansion of distribution structures was further accelerated and is expected to sustainably drive the positive development, particularly in Italy and the Iberian Peninsula.

Group figures (unaudited)

Note: The equity ratio and cash comparison relate to the reporting dates 30 September 2024 and 31 December 2023. The figures for the nine-month period 2024 are unaudited. Rounding differences may occur.

Shelly Group achieved a 47.2% increase in group revenue to EUR 65,0 million (BGN 127,1 million) in the nine-month period of 2024. Earnings before interest and taxes (EBIT) grew by 29.2% to EUR 15.4 million (BGN 30.0 million). The EBIT margin remained at a high level of 23.6%. In addition to increased sales and marketing expenses in connection with trade fair participations, third-party marketing activities and online advertising, the clearance sale of products from previous generations had a noticeable impact. Group net result increased by 38.5% to EUR 13.8 million (BGN 26.9 million).

With an equity ratio of 88.7% as at 30 September 2024, the Shelly Group has a solid balance sheet (31 December 2023: 85.8%). Here, the net result contributed to the increase in equity. At the same time, total liabilities decreased by 8.1%.

With a cash outflow of EUR 1.4 million (BGN 2.7 million), cash flow from operating activities in the nine-month period of 2024 reflects in particular a targeted increase in working capital from the Company's own funds to strengthen growth momentum. The corresponding increase in inventories and advance payments for production was offset by an overall improvement in receivables management. Improved planning using the newly implemented SAP system, increasing economies of scale in procurement and faster inventory turnover, as well as more efficient deliveries and shorter payment terms, are expected to contribute to an optimization of working capital from 2025 onwards. The cash flow from investing activities reflects investments in research and development as well as the acquisition of a further 16% in Shelly Tech (GOAP), the acquisition of a further 50% in Shelly Asia Ltd, and the sale of the former office building (Shelly Properties). The cash flow from financing activities was attributable in particular to the dividend payment and the repayment of financial liabilities. Cash and cash equivalents decreased accordingly to EUR 11.4 million (BGN 22.3 million) as of 30 September 2024 compared to EUR 15.7 million (BGN 30.7 million) as of 31 December 2023. The Shelly Group has a solid capital and financial structure for further growth.

1st Capital Markets Day highlights achievements on the way to meeting medium-term guidance

After the end of the reporting period, Shelly Group successfully held its first Capital Markets Day in Frankfurt/Main on 5 November 2024 with over 50 institutional investors, analysts and press representatives in attendance. In addition, more than 150 capital market participants and shareholders from around the world joined via live stream. At the Capital Markets Day, Co-CEOs Dimitar Dimitrov and Wolfgang Kirsch explained how the Shelly Group is revolutionizing the smart building solutions market, showed how Shelly products are winning over the hearts and homes of customers, outlined the business strategy and growth drivers, as well as the capital market strategy and long-term perspective until 2030. Various growth initiatives are expected to contribute to this, such as economies of scale in procurement and sales, as well as an increase in market share by expanding the product portfolio, geographic reach and market segments for professional and DIY (do-it-yourself) users. By the end of 2026, Shelly Group expects to be able to achieve a turnover of around EUR 200 million and an EBIT of EUR 50 million.

Outlook for 2024 reaffirmed

For the current financial year 2024, the Board of Directors confirms its expectation of revenue growth to EUR 105.0 million (BGN 205.4 million) and an increase in EBIT to EUR 26.0 million (BGN 50.9 million). In the past financial year 2023, revenue amounted to EUR 74.9 million (BGN 146.5 million) and EBIT to EUR 19.1 million (BGN 37.4 million).

Wolfgang Kirsch, Co-CEO of Shelly Group, on business development: “After the first nine months of the current financial year, Shelly Group is not only on track operationally towards the 2024 revenue and earnings forecast, but is also recording numerous strategic successes on the way to achieving its medium-term targets by 2026. We have accelerated the international roll-out of our distribution channels, broadened our product portfolio and consistently expanded our target groups. While our retail customers are increasingly demanding our premium services, we are further expanding the share of high-margin business with professional partners.”

Earnings Call:

Co-CEOs Dimitar Dimitrov and Wolfgang Kirsch will comment on the unaudited consolidated 9M 2024 results by means of a webcast presentation on 14 November 2024, 09.00 CET (10.00 EET). The webcast/call will be held in English.

Please register to participate in the webcast/call at:
Shelly Group – Earnings Call Unaudited 9M 2024.

The unaudited nine-month report is available under Publications/Financial Results on the Company's website at corporate.shelly.com.

Note: EUR/BGN exchange rate is fixed at EUR 1 = BGN 1.95583.

About Shelly Group

Shelly Group AD 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. Shelly Group 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 6 subsidiary companies and has offices in Bulgaria, Germany, and Slovenia as well as in China and USA. Shelly Group’s products have already conquered over 100 markets. Shelly Group AD 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 SLYG.

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