Esprinet achieves its goals despite economic instability

The Group has published its financial results for the first six months of the year, and these can certainly be described as satisfactory, since the group has managed to achieve the expected results. And not only that, but its most profitable businesses have seen a significant acceleration.

Some great results

Esprinet is particularly proud of the results obtained, mainly due to the difficult economic context in which they were produced. The Group published the results of its main businesses, in the hands of Alessandro Cattani, CEO of ESPRINET. These areas are Screens (Computers and Telephones), Terminals, Solutions, Services and Own Brands (Celly and Nilox). In the case of devices and solutions, the figures of margin of 2.19% and 3.43% respectively, which was accompanied by higher turnover and profitability. Solutions is now the Group business that generates the most EBITDA adjusted in absolute value, even exceeding the segment of screens. These solutions have surpassed screens in terms of profitability, although they have charged three times less than screens.

The operational rental that the brand has set up with SpiritRent is already bearing its first fruits in Spain, having been launched shortly before in Italy. The reduction in absolute margins led to a drop in operating profitability, which was affected by the absence of promotional and exceptional operations organized in the second quarter of 2021 and which were not replicated in 2022. high cost of transportation it did not affect the Devices and Solutions segments, as one might expect, which significantly improved compared to other traditionally strong segments, such as Displays. The latter returns to pre-pandemic figures.

More than 800 million euros in revenue in Spain

Esprinet detailed its activity in our country, where it has garnered excellent figures. Revenues increased by 4% compared to 2021, from 775 to 807 million euros. This is an excellent result, since the market average evolved in growth of around 1%. The segments that performed best were Solutions with 11% growth, Services with 10% and Devices with 6%. At the other extreme we have screens, which have lost 8%, as we have already told you, due to the adjustment that the market itself is making, recovering the performance figures from before the pandemic .

Despite this data, the drop in screens was lower than the market average, which was 12%. These were affected by computer sales down 8% and smartphones down 4%. Looking at devices, we see that devices grew by 38%, video games by 15%, and other products by 64%. The categories that are losing compared to 2021 are, for example, printers and consumables, with 13% and 7% respectively.

uneven growths

The results show that in this first half of 2022 Businesses such as computer resellers increased by 6%, compared to the 12% drop that Consumers reaped, which includes retailers. The gross sales margin is now 114.8 million euros, which represents a decrease of 2% compared to the same period in 2021.

mobile counterfeits

That yes, if margin improved to 5.27% from 5.24% compared to the first half of 2021. The Adjusted EBITDA was €29.1 million14% less than in the same period of 2021. In short, results in line with expectations, which show interesting figures in certain segments, which have performed particularly well despite the sharp economic slowdown in which we are currently immersed.

What is expected until the end of 2022

Regarding what the rest of the year has in store for us, Esprinet will be very vigilant as to the evolution of the market, hampered by geopolitical tensions which, in turn, put pressure on the energy market and its prices. Go to closely monitor market developmentswhich is already showing signs of a certain exhaustion, especially due to the decline in consumer purchasing power as a result of the inflationary spiral which is reflected in lower consumer confidence, and probably in the postponement of purchases of non-essential goods. Sales for the first three months of the second half of this 2022 are developing satisfactorily, so although with some caution, Esprinet is optimistic about the final results of this 2022.