Warsaw Stock Exchange: RELPOL Q4’22 RESULTS
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Last recommendation BDM: HOLD with target price 5,62 PLN/share (16.12.2022) LINK
Q4’22 results [PLN m]
- The company already reported preliminary Q4'22/2022 standalone results (PLN 3.1m EBITDA) in mid-March'23. Below is a comment on the final consolidated results.
- Q4'22 revenue amounted to PLN 37.5m (+15% y/y). Sales on the Polish market increased by 37% y/y. Export sales increased by 4% y/y (including a 10% y/y increase in Germany and no sales in Russia).
- Gross margin continued to be under pressure (16% in Q4'22 vs 20% a year ago and 16% in Q1-3'22). The company explained this in 2022 by, among other things, rising material costs or the need to move some product assembly from Ukraine to Poland (higher labour costs). The Ukrainian plant is now operating at full capacity.
- The margin improved slightly compared to Q3'22, but this is mainly due to its higher level in the "other" area. Profitability of production increased by 1 bp on a q/q basis (while on a y/y basis it was 8 bp lower).
- EBITDA amounted to PLN 3.2m (vs. PLN 2.7m a year ago), we expected PLN 2.7m. The year-on-year decline in management costs was a positive surprise.
- Net profit amounted to PLN 0.5m (vs. PLN 0.2m in Q4'21).
- Q4'22 net debt: PLN 13.9m (vs. PLN 15.2m after Q3'22).
- In his letter to shareholders, the CEO points, among other things, to good prospects in 2023 in the area of high-current relays (solar inverters and EV chargers) and to growing demand from Middle Eastern countries.
BDM Comment: Standalone results for Q4'22 were already known in advance. Consolidated ones came as no surprise. The company reported strong revenue growth in Q4'22 (+15% y/y), with gross sales margin (which has stabilised at historically low levels since Q2'22) still under pressure y/y.
Results in previous quarters [PLN m]
Sales [PLN m]
Gross margin
EBITDA [PLN m]
Net profit [PLN m]
Analyst:
Krzysztof Pado
tel.: (+48) 512 338 250
