Speedy

Courier services company Speedy shareholders voted BGN 1.20 DPS at the Company’s general shareholders’ meeting held on 26th June, 2018. Speedy will distribute BGN 6.5m of its BGN 8.4m FY2017 net profit. The dividend yields 3% at current quotes.

Speedy forecast: 10% growth of revenue for 2018

Among the key takeaways from the meeting are Company’s projections for FY2018 consolidated revenues which are expected to grow by 10% y/y to BGN 166.8m. In Bulgaria, Speedy projects c.10% y/y top line expansion, while in Romania the growth is expected to be about 20% y/y. These are based on organic growth only as a result of economic growth in the two countries and increase in the e-commerce sector. In the midterm, Speedy will target growth on local and regional level in Romania, as well as expansion of its network of locations to 500 by H1’19 and increase in the number of its automated postal stations, thus boosting its presence in the B2C segment. B2B segment is also expected to grow, although at lower rates.

In relation to the upcoming acquisition of smaller peer Rapido, the Company has already filed the case for approval with the Competition Commission. Successful completion of the deal will enable Speedy to further boost its e-commerce presence.

2017 top line growth slowed down on higher prices and customer changes

Speedy revenues growth failed to deliver the traditional double digit growth in FY2017. Group sales went up only 7% y/y to BGN 151.3m, mainly on Bulgarian operations. Organic growth on the Bulgarian arm stood at 9% y/y, down from 15% in FY2016, on low summer season, client base restructuring and higher prices. The latter together with operational adjustments hampered growth in Romania, yet client reshuffling was fully offset with SME customers.

More from FY 2017 research report by ELANA Trading