Shelly with unabated growth in 6M 2024 – expansion of distribution channels and addressable customer base
 

• Group revenue grows by 49.0% to EUR 41.8 million (BGN 81.7 million)
• EBIT increases by 54.9% to EUR 10.8 million (BGN 21.1 million)
• Consolidated net profit grows by 58.4% to EUR 9.3 million (BGN 18.1 million)
• Targeted increase in working capital from own funds to strengthen growth momentum
• Growth in Shelly Cloud user base to around 1.5 million (31 December 2023: 1.3 million)
• Premium app develops promisingly with continuous growth
• Outlook for 2024 reinforced: Revenue growth to EUR 105.0 million and increase in EBIT to more than EUR 26.0 million

Sofia / Munich, 13 August 2024 – Shelly Group AD (Ticker / ISIN: (“Shelly Group”), a provider of IoT and smart building solutions based in Sofia, Bulgaria, has recorded unabated growth in 6M 2024 with the expansion of distribution channels and addressable customer base. Another growth driver was once again the expansion of the product range (excluding accessories) by around 31% to over 90 products. The initial figures for the use of the premium app are promising. After around EUR 0.2 million in the first half of the year, a revenue contribution of EUR 0.6 million with a gross margin of almost 100% is expected for the full year 2024 with continuous growth. With revenue growth above the market average in all sales regions, the German-speaking countries continued to make the largest contribution to growth with an increase of 62.8% to EUR 21.5 million (BGN 42.1 million). The rest of Europe performed well, particularly in Italy, Spain, and Benelux, and is set to gain further momentum with the expansion of regional sales structures. In the rest of the world, Asia and Australia showed promising development.

Group figures (unaudited)

Note: The equity ratio and cash comparison relates to the reporting dates 30 June 2024 and 31 December 2023. The figures for the six-month period 2024 are unaudited. Rounding differences may occur.

Shelly Group achieved a 49.0% increase in group revenue to EUR 41.8 million (BGN 81.7 million) in the six-month period of 2024. Earnings before interest and taxes (EBIT) grew faster than revenues by 54.9% to EUR 10.8 million (BGN 21.1 million). The EBIT margin improved from 24.9% to 25.8%, despite increased sales and marketing expenses in connection with participation in trade fairs, third-party marketing activities, and online advertising expenses. Group net result increased by 58.4% to EUR 9.3 million (BGN 18.1 million).

With an equity ratio of 88.8% as at 30 June 2024, the Shelly Group has a solid balance sheet (31 December 2023: 85.8%). Here, the net result contributed to the increase in equity. At the same time, total liabilities decreased by 14.7%.

With a cash outflow of EUR 0.7 million (BGN 1.4 million), cash flow from operating activities in the six-month period of 2024 reflects in particular the demand-related increase in working capital due to higher inventories and a simultaneous increase in receivables and advance payments for production. The targeted increase in working capital from own funds serves to strengthen growth momentum. As of 2025, the measures already initiated to optimize working capital are to take effect. These include better planning based on the recently introduced SAP system, increasing economies of scale in procurement and faster inventory turnover as well as more efficient deliveries and shorter payment terms. The cash flow from investing activities also reflects the acquisition of a further 16% in Shelly Tech (GOAP), the acquisition of a further 50% in Shelly Asia Ltd., and investments in research and development, while the cash flow from financing activities was attributable in particular to the dividend payment. Cash and cash equivalents decreased accordingly to EUR 10.5 million (BGN 20.6 million) as of 30 June 2024 compared to EUR 15.7 million (BGN 30.5 million) as of 31 December 2023. The Shelly Group has a solid capital and financial structure for further growth.

Outlook for 2024 reinforced

For the current financial year 2024, the Board of Directors confirms its expectation of revenue growth to EUR 105.0 million (BGN 205.4 million) and an increase in EBIT to more than EUR 26.0 million (BGN 50.9 million). In the past financial year 2023, revenue amounted to EUR 74.9 million (BGN 146.5 million) and EBIT to EUR 19.1 million (BGN 37.4 million).

Wolfgang Kirsch, Co-CEO of Shelly Group, on business development: “Shelly Group continued its growth trajectory unabated in the first half of 2024. We have consistently pursued our strategy of continuously expanding our sales channels and strategically extending our product portfolio. We are very pleased that the Premium App and Installer Finder have been so well received by our customers and partners and are increasingly developing their potential. Thanks to our earnings strength and the resulting liquidity, we are in the fortunate position of being able to place a clear focus on growth momentum. At the same time, we see further opportunities to increase growth and profitability.”

Earnings Call:

Co-CEOs Dimitar Dimitrov and Wolfgang Kirsch will comment on the unaudited consolidated 6M 2023 results by means of a webcast presentation on 14 August 2024, 09.00 CEST (10.00 EEST). The webcast/call will be held in English.

Please register to participate in the webcast/call at:
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The unaudited six-month report is available in the Investor Relations section of the Company's website at .

Note: EUR/BGN exchange rate is fixed at EUR 1 = BGN 1.95583.

About Shelly Group

is a technology holding company that stands for innovation through the development, manufacture, and distribution of high-quality IoT products. End users and their needs are always at the heart of development. Shelly Group was founded in Bulgaria and works with a team of young, talented developers who are dedicated to producing competitive and user-friendly products. The Group consists of 6 subsidiary companies and has offices in Bulgaria, Germany, and Slovenia as well as in China and USA. Shelly Group’s products have already conquered over 100 markets. Shelly Group AD has been listed on the Bulgarian Stock Exchange since December 2016 and on the Frankfurt Stock Exchange as of November 2021 where its shares are traded under GSIN A2DGX9, ISIN BG1100003166, ticker SLYG.

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