Speedy

Leading Bulgarian courier Speedy delivers 17.2% y/y rise in the top line in 9M16 but the bottom line misses guidance. The company published its 9M16 consolidated financial results.

Revenues reached BGN 104m or 17.2% y/y rise for the 9M16 with good performance both in Bulgaria and Romania.

Domestic market growth stood at 13.5% y/y, above ELANA Trading analysts’ expectations, while Romanian market delivered 24% y/y rise in revenues, in line with expectations.

Yet, the bottom line slightly missed management guidance as investments in Romania and Bulgaria expectedly ate out part of the profitability. Consolidate EBITDA margin fell below 14% or 13.58% at the end of September 2016 to BGN 14.13m.

Below the forecast

Management guidance was for a 14%-18% margin while the company is in investment mode to help service rising business volumes. Higher rent, subcontractor and labor costs led to profitability below the guidance range.

Investment plans

Speedy is investing in a new logistics and IT system in Romania and partially in Bulgaria. It introduced new automated postal terminals in Bulgaria as well as renovated and opened up new parcel shops. With the parcel shop system plans fairly completed the company is yet to finalize its logistics map in Romania where the market is growing twice as fast.

Speedy financial reports

Read the latest research report by ELANA Trading