SAF Tehnika Consolidated Interim Report for Q4 and 12 months of financial year 2021/2022
Riga, 2022-08-10 16:03 CEST --
In the fourth quarter of the financial year 2021/2022, the Group’s unaudited consolidated net turnover was 8.4 million euros, which is 2% more than in the fourthv quarter of the FY 2020/2021. The Group ended the fourth quarter of the financial year 2021/2022 with a profit of EUR 824 thousand (unaudited). The unaudited consolidated result of the financial year 2021/2022 is profit of EUR 5.96 million.
The turnover of the region of the countries of North and Latin America amounted to 64%, or EUR 5.4 million. Compared to the same quarter turnover last financial year, the turnover increased by 7%.
The turnover of the region of Europe and the CIS countries is 28%, or EUR 2.3 million. Compared to the corresponding quarter of the last financial year, the turnover of Asia, Africa and the Middle East region decreased by 4% and accounts for 8% of total quarterly turnover (or EUR 675 thousand).
In the reporting quarter, the Group’s products were sold in 66 countries.
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 Group’s unaudited consolidated turnover for the financial year 2021/2022 was EUR 33.97 million, which is 35% more than the amount of revenue in the previous financial year.
The consolidated unaudited result of the financial year 2021/2022 is profit of EUR 5.96 million. The Group’s profit for the previous financial year 2020/2021 was EUR 3.88 million. The Group’s net cash balance at the end of the period was 2.8 million euros.In the 4th quarter of the financial year 2021/2022, EUR 856 thousand were invested in the acquisition of fixed assets (total EUR 1.68 million in the financial year).
In the final quarter of the financial year, in order to strengthen its position in the international market and promote brand and product recognition, SAF Tehnika participated in 16 international exhibitions, covering industries of different scale in the USA, Europe and Asia. At the same time, great emphasis was placed on digital marketing activities and e-commerce, promoting both brand awareness and increasing sales figures.
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 are becoming increasingly difficult – alternative transportation options increase delivery times and costs. As in times of global pandemic, 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 and “SAF Services” LLC. Both of the mentioned companies are operating from Denver, CO, USA serving North American market.
CFO, Member of the Board