Speedy

Courier services provider Speedy (0SP BU) reported 23.8% y/y growth in consolidated revenues, EBITDA surged 57.4% y/y to BGN 31.6m for 9M’19, according to Company’s published consolidated financials. Revenues increased due to integration of acquired local peer Rapido as well as the substantial improvement in international sales (up 33% y/y), thanks to a 40% y/y surge in Romanian sales and 50%+ y/y boost in sales generated by Speedy Balkans. The number of consignments for 9M’19 reached 28.3 million (up 36.6% y/y). The latter is a result of increased number of individual and B2C clients.

Rise in OPEX

Since the beginning of the year, operating costs (excl. depreciation and amortization) grew by 17.6% y/y to BGN 127.4m driven mainly by increased cost of labor (characteristic for all industries in Bulgaria) and external services costs. Higher investment activity in the past couple of years led to depreciation and amortization expense to almost double y/y reaching BGN 15.9m. It should be noted that the latter was also affected by latest changes in accounting policy concerning leasing costs, as a result of which leasing is no longer accounted for as external costs but as depreciation and interest expense. Accordingly, EBITDA surged 57.4% y/y to BGN 31.6m, while net income arrived to BGN 12.1m, up 23.4% y/y. If projected on a TTM-basis, EBITDA for 2019 could be expected to reach BGN 42.2m, which would be a 37.6% y/y boost.

BGN 18.8m in investments

As at the end of Q3’19, Speedy had 74.1m in interest-bearing debt, down 1.3% since end-2018. Total investments since the start of the year reached BGN 18.8m, of which 60% (or BGN 11.1m) for purchase of transportation vehicles. The remainder was invested in software, renovation and purchase of machinery for Speedy’s new logistics hub in Bozhurishte (near Sofia).

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