EQS-News: Shelly on a continuous growth path in the nine-month period 2024 | 13.11.24

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

• Group turnover 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
• Grow Shelly Cloud user base to approximately 1.7 million (December 31, 2023: 1.3 million)
• The First Capital Markets Day will highlight achievements on the way to achieving the medium-term guidelines
• Outlook for 2024 reconfirmed: revenue growth to EUR 105.0 million and EBIT increase 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, continued to grow profitably in the ninth month of 2024 by expanding its distribution channels and addressable customer base internationally and by broadening its product and service portfolio. With a sales 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 stimulate positive development, especially in Italy and the Iberian Peninsula.

Group figures (not checked)

Remark: The equity ratio and the cash comparison relate to the reporting dates of September 30, 2024 and December 31, 2023. The figures for the nine months of 2024 have not been audited. Rounding differences may occur.

Shelly Group achieved an increase of 47.2% in group income to EUR 65.0 million (BGN 127.1 million) in the nine months 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 higher sales and marketing costs associated with trade fair participation, third-party marketing activities and online advertising, the sell-out of previous generation products had a noticeable impact. Net result of the group increased by 38.5% to EUR 13.8 million (BGN 26.9 million).

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

With a cash outflow of EUR 1.4 million (BGN 2.7 million), cash flow from operations in the nine-month period of 2024 specifically reflects a targeted increase in revenue working capital from the company’s equity to strengthen growth momentum. The corresponding increase in inventories and prepayments for production was offset by an overall improvement in accounts receivable management. Improved planning using the newly implemented SAP system, increasing economies of scale in purchasing and faster inventory turns, as well as more efficient deliveries and shorter payment terms, are expected to contribute to working capital optimization from 2025. 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 consisted mainly of dividend payments and the repayment of financial debts. Cash and cash equivalents decreased accordingly to EUR 11.4 million (BGN 22.3 million) as of September 30, 2024, compared to EUR 15.7 million (BGN 30.7 million) as of December 31, 2023. The Shelly Group has a solid capital and financial structure for further growth.

The First Capital Markets Day will highlight achievements on the way to achieving the medium-term guidelines

Following the end of the reporting period, Shelly Group successfully held its first Capital Markets Day in Frankfurt/Main on November 5, 2024, in the presence of more than 50 institutional investors, analysts and press representatives. In addition, more than 150 capital market participants and shareholders from all over the world participated via livestream. 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 the hearts and homes of customers, outlined the business strategy and growth drivers, as well as as well as the capital market strategy and the long-term perspective until 2030. Various growth initiatives are expected to contribute to this, such as economies of scale in purchasing and sales, but also an increase in market share by expanding the product portfolio, geographical reach and market segments for professional and DIY -self-users. Shelly Group expects to achieve a turnover of approximately €200 million and an EBIT of €50 million by the end of 2026.

Outlook for 2024 reconfirmed

For the current financial year 2024, the Board of Directors confirms its expectation of turnover 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, turnover amounted to € 74.9 million (BGN 146.5 million) and EBIT € 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 operationally on track towards its 2024 revenue and profit guidance, but is also achieving numerous strategic successes on the way to achieving its medium-term objectives in 2026. We have accelerated the international rollout of our distribution channels, broadened our product portfolio and consistently expanded our target groups. As our private customers increasingly demand 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 through a webcast presentation on 14 November 2024, 9am CET (10am). EAT). The webcast/call will take place in English.

Please registry to join 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.

Remark: The EUR/BGN exchange rate is set at EUR 1 = BGN 1.95583.

About the Shelly group

Shelly Group AD is a technology holding company that stands for innovation through the development, production and distribution of high-quality IoT products. End users and their needs are always at the center of development. Founded in Bulgaria, Shelly Group works with a team of young, talented developers dedicated to producing competitive and easy-to-use products. The Group consists of 6 subsidiaries and has offices in Bulgaria, Germany and Slovenia, as well as in China and the USA. Shelly Group’s products have already conquered more than 100 markets. Shelly Group AD has been listed on the Bulgarian Stock Exchange since December 2016 and on the Frankfurt Stock Exchange since November 2021, where its shares trade under GSIN A2DGX9, ISIN BG1100003166, ticker SLYG.

Contact Investor Relations

CROSS ALLIANCE communications GmbH
Sven Pauly
Phone: +49 89 125 09 0331
Email: [email protected]
www.crossalliance.de