Speedy

Leading Bulgarian courier company Speedy (0SP BU) strives to double Romanian operations by 2020, Member of the Board of Directors Danail Danailov said in an interview for a local media. Speedy acquired GeoPost’s Romanian subsidiary – DPD Roamania, at the end of 2014 and has ended FY2015 with approximately BGN 34m of revenues from that market or 1/3 of overall group’s sales for the fiscal year.
In 2015, the Romanian business grew by 22%y/y while Bulgarian operations added 14% y/y. Danailov added.

Replicating Bulgarian model in Romania

To achieve double size in Romanian in four years, the company plans to replicate Bulgarian model and offer a wide range of courier services – from documents, to parcels and pallet delivery services. Key areas of growth in Romania, which Danailov outlined are booming e-commerce and Romania-Bulgaria and Romania-Greece intercountry deliveries as key online stores are based in Romania. For example, South African Naspers’ subsidiaries operate in SEE from Romania which would entail considerable pallet logistics services and Speedy aims at tapping on such a market segment.

Greece poses problems to delivery

Greece, however, poses a challenge currently, with the farmers’ border blockades for a couple of weeks now. This has caused the courier to temporarily suspend pallet services to Greece at the start of 2016. The company aims at servicing Bulgaria, Romania and Greece as though there are one market with no borders and accordingly prices services as such.

Speedy stocks y/y

Latest equity research on Speedy from ELANA Trading analysts