GEVORKYAN|Flash Note
Podniková analýza , 16. May
Gevorkyan reported strong Q1 2025 results and issued an updated medium-term outlook
Gevorkyan reported 1Q25 results that were stronger than we expected. Revenues were EUR 20.9mn, corresponding to a y/y growth of 11.2% and were about 1.8% above our estimate. EBITDA was EUR 8.4mn (+14.3% y/y), which is about 18.6% above our estimate and corresponds to a very high EBITDA margin of 40.0%. This was mainly due to significantly lower material and energy consumption than we expected (also y/y), while service levels were higher than our estimate. Net profit in 1Q25 was EUR 3mn (+26.3% y/y), well above our estimate of EUR 1.2mn. In addition to higher EBITDA, net profit was supported by significantly lower than expected finance costs. However, this was due to the fact that the company always reports bond coupon payments in the period when the payment actually occurred, so this is an accounting thing. The company also reiterated that it is exploring other financing options in the context of acquisitions, with the SPO being one of the options. However, management did not provide further details on the possible SPO.
Gevorkyan reported 1Q25 results that were stronger than we expected. Revenues were EUR 20.9mn, corresponding to a y/y growth of 11.2% and were about 1.8% above our estimate. EBITDA was EUR 8.4mn (+14.3% y/y), which is about 18.6% above our estimate and corresponds to a very high EBITDA margin of 40.0%. This was mainly due to significantly lower material and energy consumption than we expected (also y/y), while service levels were higher than our estimate. Net profit in 1Q25 was EUR 3mn (+26.3% y/y), well above our estimate of EUR 1.2mn. In addition to higher EBITDA, net profit was supported by significantly lower than expected finance costs. However, this was due to the fact that the company always reports bond coupon payments in the period when the payment actually occurred, so this is an accounting thing. The company also reiterated that it is exploring other financing options in the context of acquisitions, with the SPO being one of the options. However, management did not provide further details on the possible SPO.