In Q1, the company observed an increase in sales of 20.8%, an increase in EBITDA of 12.5% and a net loss of 17.6m.
As DIGI Communications published their Q1 2019 report, we are bringing you key takes from it. According to the report, the company observed revenues of EUR 281.2m, representing an increase of 20.8% YoY. Of that, the Romanian market makes up for 64.2%, amounting to EUR 180.5m (+11%). Revenue growth in Romania was the result of both, the increase in telecommunication services prices starting with March 2019; the increase in cable TV and fixed internet and data RGUs and an increase in mobile telecommunication services ARPU.
Hungary represents DIGI’s second largest market, accounting for 19.6% of the total sales. In Q1, DIGI observed an increase of 47.5% in this market, amounting to EUR 55m. This increase was mainly due to our acquisition of Invitel and the increase in the prices of internet services starting with March 2019.
Spain represents DIGI’s third largest market, accounting for 14.4% of the total sales. In Q1, DIGI observed an increase of 50.6% in this market, amounting to EUR 40.5m.
In Q1, operating expenses amounted to EUR 263.8m, representing an increase of 30.3%. Of that, the Romanian market accounted for EUR 108.5m, representing an increase of 9.2%. As the Romanian Government issued the emergency ordinance GEO 114/2018 in December 2018, DIGI recorded a pro-rata basis accrual monitoring fee of 3.0% of telecommunications services revenues (€ 4.4m).
On the Hungarian market, the company observed an increase in operating expenses by 54.4%, amounting to EUR 45.4m. Such a high increase could be mainly attributed to the Invitel’s acquisitions.
Going further down the P&L, DIGI reported EBITDA of EUR 88.5m, representing an increase of 12.5%. Adjusted EBITDA amounted to EUR 90.7m. Note that the impact of adopting IFRS 16 on EBITDA was EUR 11.4m.
When observing the net financial result, DIGI recorded an increase in loss from EUR 11m in Q1 2018 to EUR 25.8m. The increase could be mostly attributed to a net foreign exchange loss of EUR 10.8m.
The higher operating expenses coupled with an increase in net financial loss lead to a net loss in Q1 of EUR 17.6m.
Performance (Q1 2019 vs Q1 2018) (RON m)
In Q1, sales increased by 26.1%, EBITDA increased by 43.7% and net income decreased by 89.8%.
Sphera Franchise Group published their Q1 2019 report. According to it, the company observed an increase in sales of 26.1% YoY, amounting to RON 214.7m. Such an increase could be attributed to the growth in the sales of USFN Romania (KFC restaurants) which increased by 19.5%, contributing 15 p.p. in the sales growth. Further, USFN Italy (KFC restaurants in Italy) observed an increase in sales of 317%, contributing 7.7 p.p. to the sales growth. Next, CFF (Taco Bell restaurants) sales grew 126%, contributing 1.9 p.p. to the sales growth. Also, (Pizza Hut restaurants) sales increased by 7.3%, contributing 1.3 p.p. to the sales growth.
Sales (Q1 2019 vs Q1 2018) (RON m)
In Q1, operating expenses amounted to RON 191.9m, representing an increase of 33.2%. The increase in operating expenses could be mainly attributed to the increase in the cost of labor and an increase in other operating expenses while being partly offset by a decrease in the cost of food and materials. Excluding the impact of IFRS 16, operating expenses amounted to RON 192.9m, representing an increase of 33.9%.
As a result of the adoption of IFRS 16, rent expenses decreased by 62.3% amounting to RON 4.7m, while depreciation expenses increased by 232.2%, amounting to RON 16.2m. General and administrative expenses amounted to RON 13m, representing an increase of 5.0%. Excluding the impact of IFRS 16 adoption, G&A expenses amounted to RON 13.1m representing an increase of 6.0%.
Going further down the P&L, EBITDA amounted to RON 27.1m, which represents an increase of 43.7%. If we were to exclude the impact of IFRS 16, EBITDA decreased by 17.5%, to RON 15.5m.
When observing the company’s net financial result, Sphera recorded an increase in net financial loss from RON – 0.3m in Q1 2018 to RON -7.43m, in Q1 2019. The increase in loss could be attributed to the impact of IFRS 16 adoption (impact of RON 5m).
As a result of such change in net financial result, the company recorded a decrease in net income of 89.9%, amounting to RON 1.3m. Excluding the impact of IFRS 16, net income amounted to RON 5.1m, representing a decrease of 59.1%.
EBITDA & Net Income (Q1 2019 vs Q1 2018) (RON m)
In Q1, the company recorded an increase in sales of 31.1%, an increase in EBIT of 56.3% and a decrease in net income of 46%.
As Med Life published their Q1 2019 report, we are bringing you key takes from it. According to the report, sales amounted to RON 231m, representing an increase of 31.1% YoY. This increase was mainly the result of significant growth in all of the Group’s business lines, led by Hospitals, Clinics, Corporate and Laboratories, as well as acquisitions completed by the Group in 2018. To be more specific, of the total sales, Clinics accounted for 29.3% and increased by 40.5%. Further, Hospitals accounted for 22.8%, increasing by 59.7%.
Sales (Q1 2019 vs Q1 2018) (RON m)
In Q1 the Group recorded operating expenses of RON 218m, representing an increase of 30.7%. The increase is mainly linked to overall business increase.
Going further down the P&L, EBIT amounted to RON 15m, which represents an increase of 56.3%.
When observing the company’s net financial result, in Q1, they observed a loss of RON -11.1m compared to a loss of RON -3.6m in Q1 2018. The increase in loss was mainly due to the increase of RON 6m in other financing expenditures due to the increase in foreign exchange expenses, but also to the increase of RON 1m in the cost of financing following the implementation of IFRS 16.
As a result of the increased net financial loss, Med Life observed a decrease of 46% in net income, amounting to RON 2.4m.
EBIT & Net Income (Q1 2019 vs Q1 2018) (RON m)
In Q1, the company observed an increase in sales of 29%, increase in EBITDA of 37% and an increase in net income of 46.5%.
Purcari Wineries published their Q1 2019 report. According to it, sales amounted to RON 42.2m, representing an increase of 29% YoY. Such an increase could be attributed to the contribution of the Romanian and Polish market which grew by 34% and 49%, respectively. In Moldova, the company observed an increase in sales of 12%. When observing the product mix, the premium segment showed strong performance, with Purcari brand growing by 35%, due to dynamics in Romania. Furthermore, the company’s mid-price brand, Bostavan, increased by 41%, showing strong performance across key markets.
In Q1, Purcari observed a cost of sales of RON 22m, which represents an increase of 39.4%.
When observing the company’s SG&A, Purcari states that they continued to increase marketing investments, to build brand equity and seed future growth. As a result, marketing expenses increased by 24%, amounting to RON 3.3m. In total, SG&A amounted to RON 8.3m, representing an increase of 33%.
Going further down the P&L, EBITDA amounted to RON 13.9m, which represents an increase of 37% YoY. However, if we were to compare it to Q1 2018 adjusted EBITDA, which excludes IPO related expenses, it increased by 26%.
When observing the company’s net financial result, Purcari observed a decrease in loss of 8%, amounting to RON 1.7m.
In Q1, net income amounted to RON 8.7m, representing an increase of 46.5%. Such an increase could mostly be attributed to the above-mentioned high growth in the top line.
Performance (Q1 2019 vs Q1 2018) (RON m)
It is also noteworthy that in February 2019, the Group finalized the acquisition of assets owned by Vismos winery, including 263 hectares of vineyards and a production platform for primary winemaking, capable of processing up to 8,000 tons of grapes (the equivalent of around 5m liters of wine or 6.7m bottles). The acquisition, was structured as an assets purchase, paid for in two tranches with EUR 0.76m paid at closing and EUR 1.49m to pe paid by March 2020.
In Q1, the company recorded an increase in sales of 2.24%, a decrease in EBITDA of 28.7% and a net loss of RON 9m.
The newest addition to the BET index, Alro published their Q1 2019 report. According to it, the company recorded sales of RON 767.4m, representing an increase of 2.4%. The sales increased despite a slight downturn of aluminium quotations in international markets. Of the total sales, revenues from processed aluminium segment accounted for 50.8%, amounting to RON 390m (+6%). Further, revenues from primary aluminium segment, which represents the second largest source of revenues (40.2%), amounted to RON 308.6m, representing a decrease of 3.7%.
Sales (Q1 2019 vs Q1 2018) (RON m)
Alro’s cost of goods sold was of RON 662.3m, representing an increase of 14%. The increase could be mainly attributed to the growth of the purchase prices of some utilities and raw materials, in line with their specific market prices. In order to reduce the Group’s energy dependence in the primary aluminium sector, Alro began to invest in improving the performance of the electrolysis sector by implementing a new pot replacement methodology. It was done by using a new design that is expected to generate a reduction in energy consumption.
In Q1, Alro reduced their G&A expenses by 4% and also diminished the level of the outstanding provision for the remuneration of staff and management for 2018 by reversing an amount of RON 14.9m from it, which is reflected in the category other operating income in 2019 (RON 20.7m).
Going further down the P&L, EBITDA amounted to RON 94.7m, representing a decrease of 28.7%, as a result of higher operating expenses.
The interest expenses increased by RON 8.7m due to the new facilities contracted by the Group in Q2 2018 and Q1 2019, and the increase of interest rates (i.e. ROBOR and LIBOR) on financial markets.
The foreign exchange loss of RON -31m is mainly due to the revaluation of the USD-denominated borrowings and other liabilities as of 31 March 2019, in the context of the significant depreciation of the RON versus the USD.
As a result of all of the above, the company recorded a net loss of RON -9m, compared to RON 124.6m in Q1 2018.
EBITDA & Net Income (Q1 2019 vs Q1 2018) (RON m)
In Q1, the company observed an increase in turnover of 8.7%, increase in EBITDA of 11.2% and an increase in net income of 26%.
As CONPET published their Q1 2019 report, we are brining you key takes from it. According to the report, the company observed a turnover of RON 98.8m, representing an increase of 8.7% YoY. Of that, revenues from transport account for 97%, which observed an increase by RON 5.9m (+6.7%). Other revenues relate to revenues from land rental and telecommunications equipment, shunting cars, sale of tubular material etc. This amounted to RON 2.8m, representing an increase of RON 1.9m.
In Q1, operating expenses amounted to RON 90.5m, which represents an increase of 5%. The increase could mainly be attributed to the salary increases and the provision expenses related to untaken annual leaves and employees share of profit.
Conseqnuently, EBITDA amounted to RON 26.7m, which is an increase of 11.2%. Compared to the 2019 budget, EBITDA is 20.8% higher.
Going further down the P&L, the company observed a net financial gain of RON 1.9m, representing an increase of RON 0.8m.
In Q1, the company recorded a net income of RON 14.4m, which represents an increase of 26% and is 52.2% higher than the 2019 budget.