SAF Tehnika (SAF1R) Q4 23/24 earnings summary

Executive summary

• Net turnover for Q4 2023/2024 was EUR 5.9 million, down 31% year-over-year; full-year turnover was EUR 27.09 million, a 27% decrease from the prior year.

• Q4 ended with a net loss of EUR 498 thousand, compared to a profit of EUR 945 thousand in Q4 2022/2023; full-year net loss was EUR 2.39 million versus a profit of EUR 3.53 million last year.

• Americas contributed 68% of Q4 turnover and 61% of annual turnover, both declining significantly year-over-year; European revenues rose 7% annually, while Asia, Africa, and Middle East revenues fell 24%.

• Inventory provisions for slow-moving stock increased by EUR 1.8 million during the year, totaling EUR 5.1 million.

• Cash balance at year-end was EUR 2.2 million, with a negative net cash flow of EUR 1.25 million for the year.

Financial highlights

• Q4 net sales: EUR 5.98 million (Q4 2022/23: EUR 8.68 million).

• Q4 EBITDA: EUR -96 thousand (-2% margin); EBIT: EUR -495 thousand (-8% margin); Net loss: EUR -498 thousand (-8% margin).

• Full-year net sales: EUR 27.09 million (2022/23: EUR 37.26 million).

• Full-year EBIT: EUR -2.3 million; Net loss: EUR -2.39 million; EPS: -0.80 EUR (2022/23: 1.19 EUR).

• Total assets at year-end: EUR 22.99 million; owners' equity: EUR 16.41 million.

Outlook and guidance

• No specific sales or performance forecasts provided; focus remains on stabilizing turnover and achieving long-term profitability.

• Ongoing market uncertainty due to global events, but no direct impact from military conflicts in Russia, Ukraine, or Belarus.

• Continued investment in product development and diversification, especially in IoT and next-generation technologies.