This report is prepared for the Warsaw Stock Exchange SA within the framework of the Analytical Coverage Support Program 3.0.
Event: 3Q22 financial results preview.
On November 29 the Company will release 3Q22 financial results.
On October 25 LSI already released 3Q22 preliminary revenues that reached PLN 14.4 million (down 2% qoq, up 37% yoy) which was above our expectations at c. PLN 12.6 million.
We expect the production revenues to rise 13% yoy given last year’s low base (related to the pandemic uncertainty on the market) and forecast a 30% margin in this segment vs 18% in 3Q21 and 30% in 2Q22. We expect a 68% yoy rise of revenues in the distribution segment due to similar reasons and forecast the margin at the level of 26%, slightly lower than 31% recorded in the base quarter.
We expect a material rise of SG&A costs because of sales team building for a new business line (restaurant robots); finally these costs should hit PLN 4.7 million (up 52% yoy).
To sum up, in 3Q22 we forecast the Company’s revenues/ EBIT/ net loss at PLN 14.4 million (up 37% yoy)/ PLN 0.8 million (up 84% yoy)/ PLN
-0.5 million (vs PLN -0.6 million a year ago).
Expected impact: LSI Software is in the process of intensive investment in new business lines and a gradual improvement of results is expected in the upcoming quarters of 2023.
Analyst: Tomasz Rodak
GPW’s Analytical Coverage Support Programme 3.0
