Allterco

Allterco’s (A4L) Q1’22 consolidated sales revenue from IoT devices (incl. related services) jumped 26.2% y/y to BGN 17.4m, according to Company’s preliminary data. 95% (BGN 16.6m) came from home automation devices under the brand Shelly, marking a 25.1% y/y increase. Sales from MyKi tracking devices, on the other hand, decreased by 8.7% y/y to BGN 447k, which according to Allterco is a sign of recovery following the phasing out of anti – epidemic measures taken by the governments of a number of countries where the devices are being sold.

The results are in line with the managerial expectations for 2022 when taking into account the seasonality of sales and the fact that growth came mostly from existing product lines. However, according to our estimations, if the growth rate persists throughout the year, the Company will have difficulties to meet our targeted 30% y/y rise in top line for 2022. Please note, top line expansion already slowed down in 2021 to 28% y/y (vs our forecasted 34% y/y) compared to the achieved annual growth rate of 39% in 2020.

Share buyback

Meanwhile, Allterco voted in favor of 80k shares buyback program on an extraordinary general meeting of shareholders (EGM) held on 8th of April 2022. The price per share is set in the range of BGN 15.00-30.00. The buy-back may be executed all at once or in parts in one or multiple deals until the maximum number of shares is reached through BSE or over-the-counter (OTC) transactions. Board of Directors (BoD) will define the other parameters of the share repurchase program.

Board of Directors changes

In addition, the EGM decided to increase the number of BoD members from three to five people. The new members of the company’s board are Wolfgang Kirsch and Gregor Beiler. Mr. Kirsch is the recently appointed CEO of Allterco Europe and former managing director of the MediaMarktSaturn Group, while Mr. Beiler is the Chairman of Allterco’s Advisory Board and former CEO of Aparavi Software AG as well as former VP in Sales & Marketing at Logitech Europe and former General Manager at Microsoft Germany GmbH

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