Shelly Group remains on track with continued high revenue and earnings growth in 9M 2023
 

• Group revenue increased by 49.3% to EUR 44.1 million (BGN 86.3 million)
• EBIT grew by 68.6 to EUR 11.9 million (BGN 23.2 million)
• Net profit at Group level increased by 65.6% to EUR 9.9 million (BGN 19.4 million)
• Shelly cloud user base growth of 62.5% driven by new app to 1.1 million in 9M/23 (31 December 2022: 677 thousand)
• Outlook 2023 confirmed: Revenue growth of 51.0% to EUR 72.0 million and EBIT to increase by at least 63.5% to more than EUR 17.0 million

Sofia / Munich, 13 November 2023 – Shelly Group AD (Ticker SLYG / ISIN: BG1100003166) ("Shelly Group"), a provider of IoT and smart building solutions based in Sofia, Bulgaria, has continued its encouraging business performance recorded in the first half of the year throughout the third quarter of 2023, despite geopolitical uncertainties. The lighting and energy management markets in particular showed strong growth. With a positive revenue trend in all focus markets, the German-speaking region continued to make the largest contribution to growth, more than doubling to EUR 22.1 million. Northern and Southern Europe are developing promisingly.

Group figures (unaudited)

Note: The equity ratio comparison is from 30 September 2023 to 31 December 2022. The figures for the nine-month period 2023 are unaudited. Rounding differences may occur.

Shelly Group achieved a 49.3% increase in group revenues to EUR 44.1 million (BGN 86.3 million) in the nine-month period 2023. Earnings before interest and taxes (EBIT) following the intensified investment in sales and R&D structures in the previous year increased by 68.6% to EUR 11.9 million (BGN 23.2 million). Optimizations in the supply chain and product portfolio more than offset the overall cost increase. Net result at the Group level increased by 65.6% to EUR 9.9 million (BGN 19.4 million).

With an equity ratio of 84.6% as of 30 September 2023, Shelly Group enjoys a solid balance sheet (31 December 2022: 89.0%). Here, the unappropriated profit was offset in particular, by an increase in trade liabilities in connection with the expansion of business activities. In addition, loss carryforwards in connection with the acquisition of a Slovenian company, bonus payments to employees, and the distribution of dividends were noticeable.

Cash flow from operating activities in the nine-month period 2023 with an inflow of EUR 9.6 million (BGN 18.8 million) reflects in particular a lower inventory level alongside an increase in receivables. With a cash outflow of EUR 2.5 million (BGN 4.9 million), the prior-year period was characterized in particular by increased inventory levels and advance payments to suppliers to proactively manage potential delays in the supply chains. Cash and cash equivalents as of 30 September 2023 increased accordingly to EUR 18.1 million (BGN 35.4 million) compared to EUR 14.4 million (BGN 28.2 million) as of 31 December 2022. Shelly Group maintains a sufficient basis for financing further growth.

Outlook 2023 confirmed

For the current fiscal year 2023, the Board of Directors continues to expect revenue growth of 51.0% to EUR 72.0 million and EBIT to increase by at least 63.5% to more than EUR 17.0 million.

Dimitar Dimitrov, Co-CEO of Shelly Group, commented on product development: “In the nine-month period of 2023, we more than quadrupled the number of product launches compared to the previous year to 22 devices. And we still have surprises in the pipeline for the fourth quarter to offer customers added value. Our customer focus and technological leadership through new functions and areas of application are paying off, as is the expansion of our research and development team. The Gen3 products with Shelly chip are due for market launch in 2024 and we want the Gen4 products to follow in 2025. In doing so, we remain well ahead of technology trends in the market. This lead, combined with our very strong value-for-money positioning, has always been the foundation of Shelly's success.”

Wolfgang Kirsch, Co-CEO of Shelly Group, added on business performance: “The Shelly Group continued its encouraging business performance recorded in the first half of the year throughout the third quarter of 2023, despite the geopolitical uncertainties. Particularly in challenging times, we can score points with the consistent value-for-money focus of our products, as demonstrated by the strong demand in the areas of lighting and energy management. The same applies to the professional sector, for example in the partnership with Vodafone for energy management in Africa or with Zendure for photovoltaic balcony power plants. Our core markets are developing splendidly and the rest of Europe and our US business are also showing an increasingly positive trend. With the recent expansion of production capacities, we are prepared for further company growth.“

Earnings Call:

Co-CEOs Dimitar Dimitrov and Wolfgang Kirsch will comment on the unaudited consolidated 9M 2023 results by means of a webcast presentation on 14 November 2023, 09.00 CET (10.00 EET). The webcast/call will be held in English.

Please register to participate in the webcast/call at:
Shelly Group – Earnings Call Unaudited 9M 2023.

The unaudited nine-month report is available in the Investor Relations section of the Company's website at allterco.com.

Note: EUR/BGN exchange rate fixed at EUR 1 = BGN 1.95583.

About Shelly Group

Shelly Group AD is a technology holding company that stands for innovation through the development, manufacture, and distribution of high-quality IoT products. End users and their needs are always at the heart 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 subsidiary companies and has offices in Bulgaria, Germany, and Slovenia as well as in China and USA. Shelly Group’s products have already conquered over 100 markets. Shelly Group AD has been listed on the Bulgarian Stock Exchange since December 2016 and on the Frankfurt Stock Exchange as of November 2021 where its shares are traded under GSIN A2DGX9, ISIN BG1100003166, ticker SLYG.

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