EQS News: Shelly to Continue Growth in 6M 2024 – Expanding Distribution Channels and Addressable Customer Base | 13.08.24

Shelly to Continue Growth in 6M 2024 – Expanding Distribution Channels and Addressable Customer Base

• Group turnover grows by 49.0% to EUR 41.8 million (BGN 81.7 million)
• EBIT increases by 54.9% to EUR 10.8 million (BGN 21.1 million)
• Consolidated net profit grows by 58.4% to EUR 9.3 million (BGN 18.1 million)
• Targeted increase in working capital from own resources to strengthen growth momentum
• Growth in Shelly Cloud user base to approximately 1.5 million (December 31, 2023: 1.3 million)
• Premium app developing promisingly with continuous growth
• Outlook for 2024 strengthened: Turnover growth to EUR 105.0 million and increase in EBIT to over EUR 26.0 million

Sofia / Munich, 13 August 2024 – Shelly Group AD (Ticker SLYG / ISIN: BG1100003166) (“Shelly Group”), a provider of IoT and smart building solutions based in Sofia, Bulgaria, has recorded unabated growth in 6M 2024 with the expansion of distribution channels and the addressable customer base. Another growth driver was again the expansion of the product range (excluding accessories) by around 31% to more than 90 products. The first figures for the usage of the premium app are promising. After around EUR 0.2 million in the first half of the year, a revenue contribution of EUR 0.6 million with a gross margin of almost 100% is expected for the full year 2024 with continued growth. With revenue growth above the market average in all sales regions, the German-speaking countries continued to make the largest contribution to growth with an increase of 62.8% to EUR 21.5 million (BGN 42.1 million). The rest of Europe performed well, particularly in Italy, Spain and Benelux, and is expected to gain further momentum as regional sales structures expand. In the rest of the world, Asia and Australia showed promising development.

Group figures (unaudited)

Remark: The equity ratio and cash comparison relate to the reporting dates of June 30, 2024 and December 31, 2023. The figures for the six-month period 2024 are unaudited. Rounding differences may occur.

Shelly Group achieved a turnover growth of 49.0% Group income to EUR 41.8 million (BGN 81.7 million) in the six months of 2024. Earnings before interest and taxes (EBIT) grew faster than revenue by 54.9% to EUR 10.8 million (BGN 21.1 million). The EBIT margin improved from 24.9% to 25.8%, despite increased sales and marketing expenses related to trade fair participation, third-party marketing activities and online advertising costs. Group net result increased by 58.4% to EUR 9.3 million (BGN 18.1 million).

Immediately equity ratio of 88.8% as of June 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 decreased by 14.7%.

With a cash outflow of EUR 0.7 million (BGN 1.4 million), cash flow from operating activities in the six-month period of 2024 mainly reflects the demand-related increase in working capital due to higher inventories and a simultaneous increase in receivables and prepayments for production. The targeted increase in working capital from own resources is intended to strengthen the growth momentum. From 2025, the measures already implemented to optimize working capital should take effect. These include improved planning based on the recently introduced SAP system, increasing economies of scale in purchasing and faster inventory turnover, as well as more efficient deliveries and shorter payment terms. Cash flow from investing activities also reflects the acquisition of a further 16% in Shelly Tech (GOAP), the acquisition of a further 50% in Shelly Asia Ltd. and investments in research and development, while cash flow from financing activities was mainly attributable to the dividend payment. Cash and cash equivalents decreased accordingly to EUR 10.5 million (BGN 20.6 million) as of June 30, 2024 compared to EUR 15.7 million (BGN 30.5 million) as of December 31, 2023. The Shelly Group has a solid capital and financial structure for further growth.

Outlook for 2024 strengthened

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 more than 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: “Shelly Group continued its growth trajectory unabated in the first half of 2024. We have consistently pursued our strategy of continuously expanding our sales channels and strategically expanding our product portfolio. We are very pleased that the Premium App and Installer Finder have been so well received by our customers and partners and are continuing to develop their potential. Thanks to our earnings power and the resulting liquidity, we are in the fortunate position of being able to clearly focus on growth momentum. At the same time, we see further opportunities to increase growth and profitability.”

Profit talk:

Co-CEOs Dimitar Dimitrov and Wolfgang Kirsch will comment on the unaudited consolidated 6M 2023 results through a webcast presentation on 14 August 2024, 09.00 Central European Time (10:00 am) (Eastern European Time)The webcast/call will be held in English.

Please register to join the webcast/call on:
Shelly Group – Unaudited Profit Report 6M 2024.

The unaudited semi-annual report is available in the Investor Relations section of the Company’s website at https://corporate.shelly.com/publications/financial-results/.

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

About Shelly Group

Shelly Group AD is a technology holding company that stands for innovation through development, production and distribution of high-quality IoT products. End users and their needs are always at the center 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 subsidiaries and has offices in Bulgaria, Germany and Slovenia, as well as in China and the USA. Shelly Group 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 are traded under GSIN A2DGX9, ISIN BG1100003166, ticker SLYG.

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