SAF Tehnika Consolidated Interim Report for Q2 and 6 months of financial year 2022/23In the second quarter of the financial year 2022/ 2023, the Group's unaudited consolidated net turnover was 10.5 million euros which is an increase of 15 % compared to the second quarter of the financial year 2021/2022. The Group ended the second quarter of the financial year 2022/2023 with a profit of EUR 1 million (unaudited). The consolidated unaudited result of 6 months of the financial year 2022/2023 is profit of EUR 3.56 million.Riga, 2023-02-08 16:58 CET --
The turnover of the region of the countries of North and Latin America amounted to 77%, or EUR 8.1 million. Compared to the same quarterly turnover last financial year, the turnover increased by 97%.
The turnover of the European region is 21%, or EUR 2.1 million, which is 48% less than in the 2nd quarter of the previous financial year. Compared to the corresponding quarter of the last financial year, the turnover of Asia, Africa and the Middle East region is three times less and accounts for 3% of the total quarterly turnover. Fluctuations in quarterly turnover are explained by the implementation of some more large-scale projects.
In the reporting quarter, the Group’s products were sold in 60 countries.
The Group’s costs did not exceed the planned levels, and The Group continues to invest in the development of new products and product modifications.
The Group’s unaudited consolidated net turnover for 6 months of the financial year 2022/2023 was EUR 21.95 million, which is a 29% increase compared to the volume of revenues in the last financial year.
The consolidated unaudited result of 6 months of the financial year 2022/2023 is profit of EUR 3.56 million. The Group’s profit for the 6 months of the previous financial year 2021/2022 was EUR 3.49 million.
In the 2nd quarter EUR 532 thousand were invested in the acquisition of fixed assets.
In December 2022, dividends were paid in the amount of EUR 0.68 (sixty-eight cents) per share, or total EUR 2.02 million. To ensure liquidity, in August of the financial year 2022/2023, the Parent Company entered into a Credit Line Agreement with Luminor Bank AS for the total amount of EUR 4.95 million. At the end of the reporting period, the use of the credit line was EUR 1.87 million.
Since the outbreak of hostilities in Ukraine by Russia, the overall uncertainty of the business environment has increased. Although its direct impact on the Group’s activities is relatively limited, the Group carefully assesses possible cost growth forecasts and potential risks. The Group’s operations are affected by the global shortage of various electronic components. Supply chains remain difficult – alternative transportation options increase delivery times and costs. The company regularly reviews procurement volumes and deadlines, and continues to accumulate inventory in order to be able to fulfil most of the orders within normal lead times. This applies to all SAF product families – microwave links, Spectrum Compact and Aranet.
The Group continues to explore market demand and problematic issues in order to be able to provide necessary product modifications, as well as continues investments in product development. The goal of the Company is to stabilize sales levels to ensure a positive net result in the long term.
About SAF Tehnika:
„SAF Tehnika” JSC is an ISO certified wireless data transmission equipment manufacturer. The company's products are produced in Latvia, Europe and sold in over 130 countries worldwide. „SAF Tehnika” has been listed on Nasdaq Riga since 2004. SAF Tehnika wholly owns subsidiaries “SAF North America” LLC, which operates from Denver, CO, USA and serves the North American market and “SAF Tehnika Asia” LTD in Singapore.
Additional information:
Zane Jozepa
CFO, Member of the Board
zane.jozepa@saftehnika.com
www.saftehnika.com
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