As all the Slovenian blue chips published their Q1 2021 results, we decided to take a look at the profitability of the companies.
It is important to note that comparing the margins across the selected companies is not necessarily the best way to do the comparison as many companies operate in different industries. Since both EBITDA and profit margin reflect to a great extent the industry in which the company operates in, we advise to compare it to the peer average or median. Nevertheless, it is still worth seeing which Slovenian companies are more profitable and therefore have “room” to potentially reduce the prices of their goods or services and remain at a high level of profitability.
Q1 2021 EBITDA margin of selected companies (%)
Looking at the Q1 results, Telekom Slovenije and Krka lead the list with the highest EBITDA margins of 35.4% and 31.2%, respectively. For Telekom Slovenije this represents an increase in the margin of 1.9 p.p., although EBITDA was down 3% YoY. The company also recorded a 6% YoY decrease in sales. Breaking down the sales, Mobile services in end-customer market segment recorded a 7.1% YoY increase, primarily due to higher revenues from mobile merchandise. All other market segments recorded a decrease in sales.
Krka’s Q1 2021 EBITDA margin represents a 3.8 p.p. decrease due to a 14.5% YoY decrease in revenue, note that Q1 2021 sales were still the second strongest Q1 sales in Krka’s history.
Luka Koper, Cinkarna Celje and Petrol witnessed a fair increase in their EBITDA margins compared to Q1 2020. Petrol recorded a noticeable increase in EBITDA, amounting to EUR 54.6m (+16.1% YoY).
Change in EBITDA & Profit margin (Q1 2020 vs Q1 2021) (p.p.)
Turning our attention to profit margins, Krka leads the list with 21.8%, while its margin increased by 3.4 p.p. YoY. Luka Koper and Cinkarna Celje follow with a profit margin of 15% and 14.8%, respectively. Telekom Slovenije increased its profit margin by 1.6 p.p., reaching 6.2%. With 3%, Petrol recorded the lowest profit margin out of the observed companies.
Q1 2021 Profit margin of Selected Companies (%)