The operation in the first quarter of 2020 was already affected by an epidemic, which is also reflected in the lower base period figures, so due to the base effect there was a significant increase in revenue and profit in the first quarter at Nyomda, according to the company’s interim management report. Although the growth was spectacular due to the weak base period, the company also performed strongly compared to the other quarters, as both revenue and net income broke a quarterly record.
The first quarter net sales of Nyomda in the period January-March 2021 amounted to HUF 9.61 billion, which is a 37.6 percent increase compared to the same quarter of the previous year.
- Among the strategic segments a security products and solutions sales jumped 60 percent, driven mainly by increasing sales of seals, document security products and security solutions.
- A card production, personalization Revenue increased by 46 percent from a year earlier, and sales of security certificates also contributed to the increase, the company said in a statement. The printing house signed a contract with the National Infocommunication Service Provider for the production of security certificates until the end of March 2023. The company did not state exactly to what extent the security certificates contributed to the revenue during the period, only that “Sales of security certificates also contributed to the change.”
- A from the production and personalization of forms, data processing sales increased by 22 percent year-on-year, mainly due to export sales.
- Of the lower – income divisions, traditional printed matter business revenue increased 7 percent during the period.
Export sales jumped 41 percent and already accounted for nearly 45 percent in period revenue, compared to less than 44 percent in the base period. The increase was mainly due to higher sales of security products and solutions, while the company recorded a nearly 70 percent decrease in revenue from card sales in card sales.
|The main result lines at ANY Security Printing House|
|1Q 20||1Q 21||change|
|of which export sales||3050||4304||41,1%|
|weight of export sales||43,7%||44,8%||1,1%|
|operating profit level||6,1%||9,3%||3,2%|
|Source: ANY Security Printing House, Portfolio|
With a 37 percent increase in revenue the operating profit of Nyomda more than doubled in the period, Amounted to HUF 892 million, At the EBITDA level, it grew by 65 percent the company. This means that profit rates have improved from a year earlier,
- the operating profit level increased by 3.1 percentage points to 9.3 percent,
- EBITDA margin increased by 2.2 percentage points to 13.5 percent,
- and the net profit level rose to 4.9 percent, the last time there was an example in 2017.
The improvement in profitability is due to the fact that material costs and depreciation increased less than revenue from the level of a year ago, and capitalized own performance (mainly determined by changes in inventories, the most significant of which is the value of work in progress related to security and card products). ) have decreased.
Personnel expenses increased at approximately the same rate as revenue, 35 percent from a year earlier due to overtime due to increased turnover and performance-based wages. However, other expenses increased compared to the same period of the previous year due to higher local taxes due to higher results and a stronger forint-induced exchange rate loss compared to the end of the year.
The net profit reached HUF 468 million in the period January-March 2021, which is a 60 percent increase from the value a year earlier.
The price of Nyomda rose 2.6 percent this year, which is underperforming on the Hungarian stock exchange, as the BUX index has been up nearly 9 percent since the beginning of the year.
Cover image source: Portfolio