In the fourth quarter of the financial year 2023/ 2024, the Group's unaudited consolidated net turnover was 5.9 million euros, which is a decrease of 31% compared to the 4th of the financial year 2022/2023. The Group closed the 4th quarter of the financial year 2023/2024 with losses of EUR 498 thousand (unaudited). The consolidated unaudited result of the financial year 2023/2024 is a loss of EUR 2.39 million.
Riga, 2024-08-14 17:13 CEST --
The turnover of the North and Latin America region amounted to 68%, or EUR 4.1 million. Compared to the same quarter of the previous financial year, the turnover decreased by 34%.
The European region gave 25% of the turnover, or EUR 1.5 million, which is par 32% less than in Q4 of the previous financial year. The turnover in Asia, Africa and the Middle East region has increased compared to the corresponding quarter of the previous financial year, and accounts for 6% of the total quarterly turnover (or EUR 382 thousand).
Fluctuations in quarterly turnover are explained by the implementation of medium and long-term projects. Some of these projects will be implemented in the second half of 2024.
In the reporting quarter, the Group's products were sold in 68 countries.
The Group's expenditures did not exceed the planned volumes and were generally lower than in the same period a year earlier. This is due to lower sales, as well as planning and appropriate adjustment of related costs. At the same time, the Group still continues to invest in the development of new promising products and product modifications, and to promote sales in existing and emerging market segments.
The overall unaudited result of the financial year 2023/2024 is largely influenced by the provisions for slow-moving stocks - it has grown by EUR 1.8 million in the financial year (increased by EUR 250 thousand in the reporting quarter). In total, they amount to EUR 5.1 million on the company's Balance sheet. Group's operations were long affected by the global shortage of various electronic components, the company has accumulated material reserves during the previous periods to be able to fulfil most of the orders, ensuring short delivery times
In the 4th quarter EUR 238 thousand were invested in the acquisition of fixed assets.
Parent Company continues the Credit Line Agreement with Luminor Bank AS for the total amount of EUR 4.95 million. At the end of the reporting period, the use of the credit line was EUR 26 thousand, compared to EUR 1.2 million at the end of the previous year.
Although hostilities in Ukraine do not have a direct impact on the Group's activities, the general uncertainty in the business environment remains. The Group continues to monitor forecasts of possible cost increases and assess potential risks. The company regularly reviews procurement volumes and deadlines, and continues to provide material reserves in order to be able to execute most of the orders in short delivery terms. This applies to all SAF product families - microwave links, spectrum analyzers and the Internet of Things (IoT).
the Group continues to actively explore the market and problematic issues in order to be able to offer the necessary product modifications and create prototypes for next generation technologies. At the same time, the Group also develops IoT segment solutions in business and consumer segments to diversify, to create higher added value for SAF Tehnika product offering, as well as to increase the Group's revenue. The goal of the Company is to stabilize sales levels to ensure a positive net result in the long term.
About SAF Tehnika:
"SAF Tehnika" JSC is an ISO certified wireless data transmission equipment manufacturer. The company's products are produced in Latvia, Europe and sold in over 130 countries worldwide. "SAF Tehnika" has been listed on Nasdaq Riga since 2004. SAF Tehnika wholly owns subsidiaries "SAF North America" LLC, which operates from Denver, CO, USA and serves the North American market and "SAF Tehnika Asia PTE" LTD in Singapore.
Additional information:
Zane Jozepa
CFO, Member of the Board
zane.jozepa@saftehnika.com
www.saftehnika.com
