SAF Tehnika Consolidated Interim Report for Q3 and 9 months of financial year 2021/2022
Riga, 2022-05-11 15:32 CEST --
In the third quarter of the financial year 2021/2022, the Group’s unaudited consolidated net turnover was 8.6 million euros, which is 46% more than in the third quarter of the FY 2020/2021. The Group ended the third quarter of the financial year 2021/2022 with a profit of EUR 1.65 million (unaudited). The unaudited consolidated result for the 9-month period of the financial year 2021/2022 is profit of EUR 5.14 million.
The turnover in North and Latin Americas was 49% or EUR 4.2 million. Compared to the turnover in the same quarter of the previous financial year, the turnover increased by 9%.
The turnover in Europe and CIS countries amounts to 37% or EUR 3.2 million, which is 82% more than in the 3rd quarter of the previous financial year. The turnover of the AMEA (Asia, Middle East, Africa) region grew 4 times compared to the corresponding quarter of the previous financial year and accounts for 14% or EUR 1.2 million.
In the reporting quarter, the Group’s products were sold in 62 countries.
The Group’s unaudited consolidated turnover for the 9-month period of the financial year 2021/2022 was EUR 25.57 million, which is 48% more than the amount of revenue in the previous financial year.
The Group’s expenditures did not exceed the planned volumes and were generally higher than in the same period a year earlier, which is due to the increase in the number of employees, investment in sales promotion in existing and new market segments. The Group continues to invest in the development of new products and modification of existing products.
The unaudited consolidated result for the 9-month period of the financial year 2021/2022 is profit of EUR 5.14 million. The Group’s profit for the 9 months of the previous financial year 2020/2021 was EUR 2.11 million. The Group’s net cash balance at the end of the period was 4.6 million euros.
In the third quarter, special emphasis was placed on raising awareness and competitiveness of the Aranet brand in global markets. A brand strategy and a new visual identity have been developed, along with a brand story in a video format and a new Aranet.com website that provides a much more transparent and clear view of Aranet products and solutions offered.
Since the outbreak of hostilities in Ukraine by Russia, the direct impact on the Group’s activities is relatively limited, but the uncertainty of the business environment has increased. 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 could be expected to experience more and more difficulties - alternative transport options could increase the time and cost of delivery. As in times of global pandemic, the company 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 and “SAF Services” LLC. Both of the mentioned companies are operating from Denver, CO, USA serving North American market.
CFO, Member of the Board
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