Speedy's Q1’23 revenue up by 21.2% YoY; margins deteriorated on cost pressure (NEUTRAL)

Speedy's Q1 2023 consolidated revenue posted 21.2% YoY growth to BGN 105.7m. Courier services revenue jumped by 21.7% YoY as revenues from the domestic market rose by 28.8% YoY to BGN 57.1m, while international deliveries increased 14.0% YoY to BGN 46.9m. The number of parcels delivered amounted to 17.3m, or 17.0% more than in the comparable 2022 period. OPEX stood at BGN 87.6m, up 24.6% YoY due to the growth of materials (+15.7% YoY; BGN 4.7m) and hired services costs (+24.3% YoY; BGN 57.8m). 3-mo EBITDA amounted to BGN 18.1m (+6.8% YoY) with the respective margin deteriorating by 2.3 p.p. to 17.1%. Below the EBITDA line, depreciation charges increased 10.6% YoY, which resulted in net income of BGN 8.2m (+2.4% YoY), where net profit margin decreased by 1.4 p.p. YoY to 7.8%. Jan-March EPS stood at BGN 1.53, while the TTM EPS amounted to BGN 6.49. On the balance sheet, IB debt to assets advanced slightly by 0.2 p.p. compared to end-2022 and reached 37.8% in Q1’23. CFO dropped 51.3% YoY to BGN 4.3m as payables decreased to BGN 24.2m, compared to BGN 30.5m in the beginning of the year. Still, CFO was well above the maintenance CAPEX of BGN 1.5m, while payments for servicing the interest liabilities amounted to BGN 3.4m. As a result, cash and equivalents was reduced slightly by BGN 1.0m to BGN 53.9m.