Speedy

In line with ELANA Trading analysts’ expectations, leading courier Speedy sustained double digit top line growth for the 9M 2015. Group sales are up 66% y/y with majority coming from freshly consolidated Romanian arm – DPD Romania.
Currently, Romanian operations represent 1/3 of Speedy Group. Organic growth on the domestic Bulgarian arm stood at 12% y/y, expectedly down from 15% y/y in H1’15, driven by both B2B pallet delivery services and B2C e-commerce.
FY 2015 will be the first full year with clean post-acquisition consolidated results. Nevertheless, extrapolated Romanian arm results signal double digit growth on the new market as well, thus adding momentum to Speedy’s overall performance.

Continued investments to speed up growth and returns

With DPD Romania’s acquisition in November 2014, Speedy entered a 3x bigger but less developed market. DPD Romania is B2C focused and holds 4th largest market share (4% of the market) while Speedy is a B2B leader in Bul-garia and plans to transpose its model in Romania.

Speedy – the largest courier company in Bulgaria

Established 1998, Speedy is the largest courier company in Bulgaria with 37% market share. It is also the 2nd largest postal service provider after the incumbent Bulgarian Post.
In 2014, Europe’s 2nd largest land courier service provider GeoPost SA, part of the French La Poste Group, acquired 25% in Speedy at a 8x EV/EBITDA and with the option to increase its stake to 70% by 2020.
Reversely, Speedy acquired GeoPosts’s subsidiaries in Bulgarian and Romania – GeoPost Bulgaria and DPD Romania, with the strategic goal of expanding on the Romanian market.
Speedy’s founder – Valeri Mektupchian and managers currently are managing the Romanian business restructuring. It aims at transposing Speedy’s proven business model in Romania as well.

On the stock exchange

Listed on the Bulgarian Stock Exchange in the end of 2012, Speedy became one of the favourites of the local and international investors – its stock registering approx. 100% price rise for 3 years.

Find out more in ELANA Trading equity research report on Q3 2015 results