This report analyses the financial performance of Electro World for the 2019. You will find all the necessary details regarding company's profitability, volume growth, indebtedness and a comparison with selected peers.
Electro World announced a net profit of CZK 77.2 mil in 2019, up 136% when compared to the last year. Sales increased 10.8% yoy to CZK 4,346 mil, EBITDA rose 77.7% to CZK 114 mil and net margin amounted to 1.78%. In the last three years, the Company grew its revenues by 10.2% a year, and produced an average return on capital of 22.5% and return on equity of 29.7%.
The key highlights are:
Sales increased 10.8% yoy to CZK 4,346 mil in 2019. That’s compared to average growth of 10.2% in the last three years and 25.4% more when compared to the average annual increase in the last decade.
EBITDA amounted to CZK 114 mil and grew 77.7% when compared to last year. EBITDA margin reached 2.63%, down 1.72%pp when compared to a 5-year average.
Company’s indebtedness fell when measured by Net Debt/Equity and reached -110% at the end of 2019. When compared to EBITDA, net debt fell to -1.88x at the end of 2019.
Electro World netted CZK 77.2 mil to its shareholders in the last year, down 335% when compared to the average seen in the last five years. The company produced a return on capital of 43.6% and return on equity of 49.3% in the last year. Since 2014, Electro World’s average ROCE amounted to -5.58% and ROE 252%.
When compared to selected peers, Electro World has grown 1.06 pp faster in sales in the last five years. It was also 2.57 pp less profitable in terms of ROCE, and achieved 4.08 pp lower EBITDA margin based on a last year's results.
In terms of indebtedness, the company operated with 222 pp lower net debt to equity at the end of 2019 when compared to its peers (-110% at Electro World vs. 112% of its peers).
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