The election gave impetus to the Printing House

Double – digit revenue growth

Nyomda achieved revenue growth of over 20 percent in the first quarter compared to the same period last year, due to the printing process related to the parliamentary elections and the fact that the number of document orders is constantly increasing as the deadline for the renewal of expiring documents approaches – according to the company’s quick report published after the market closed on Friday.

  • Among the business segments a sales of security products and solutions increased 65 percent on a year-on-year basis, the change was mainly due to sales of election forms with security features.
  • Due to the increasing turnover of card documents a card production, personalization business revenue rose 2 percent from a year earlier.
  • A production of forms, personalization, data processing the division’s revenue grew 3 percent, with export sales driving the growth.
  • Book sales have risen, thanks to the traditional printed matter its revenue jumped 27 percent from a year earlier.
  • The other sales revenue increased slightly, this segment mainly includes revenues from the sale of commercial materials and goods.

Declining export earnings

Export sales fell nearly 12 percent in the first quarter, bringing the share of exports to 33 percent, down from nearly 45 percent in the base period.

Of the export revenues, the revenue from security products and solutions fell sharply, the higher value in the base period was due to the development of document security systems accounted for in the first quarter of 2021. On the other hand, the revenue from card production increased 1.5 times and the revenue from the production of forms with the largest export revenue was able to increase slightly, by 2 percent.

Improved performance

Within operating expenses, material costs increased as turnover increased, but to a lesser extent than revenue, while personnel expenses jumped 26 percent due to performance-based wages, overtime and wage increases due to increased turnover.

The main result lines at ANY Security Printing House
million forints 1Q 21 1Q 22 change
net income 9610 11574 20,4%
of which export sales 4304 3799 -11,7%
weight of export sales 44,8% 32,8% -12.0pp
operating profit 892 1485 66,5%
operating profit level 9,3% 12,8% +3,5pp
net profit 468 1086 132,1%
EBITDA 1295 2044 57,8%
Source: ANY Security Printing House, Portfolio

At the EBITDA level, Nyomda reported a profit of HUF 2 billion for the first quarter, an increase of 58 percent from a year earlier and an increase of 66 percent to HUF 1.48 billion.

Profit rates improved from the level a year ago, the operating profit level improved by 3.5 percentage points and the net profit level is approaching 10 percent.

Net profit amounted to HUF 1.08 billion, which is more than double the value of the base period.

What does management say?

Commenting on the results, Gábor Zsámboki, the CEO of Nyomda, said that

As the June deadline for the renewal of expiring documents approaches, the number of document orders is constantly increasing, and we performed printing tasks related to the parliamentary elections without interruption, and our subsidiaries also performed excellently in the first 3 months. In addition to the improvements and technological investments that took place during the pandemic, we realized the increased resource needs by managing the existing capacities well, so our net profit increased significantly due to our efficient operation.

Effects of the economic environment such as increase in delivery times and prices, difficulties in obtaining raw materialsthey pose challenges to the company, but they do not cause disruptions, he added.

The exchange rate

The printing house’s share price closed at 1.9 percent today, amid a more favorable market sentiment prior to the publication of the quick report. The paper is up 2.6 percent this year, outperforming the Hungarian stock market, as BUX fell nearly 19 percent this year. The securities may be attractive to investors mainly due to the high dividend, with dividends paid after last year representing a dividend yield of around 9 per cent.

Cover photo: MTI Photo / Zsolt Szigetváry


Source: Portfolio.hu – Üzlet by www.portfolio.hu.

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