WOOD Flash – ANY PLC: 3Q18 results review – strong revenues, at the expense of profitability pressure
ANY reported its 3Q18 results yesterday (20 November). The company reported revenues of HUF 7.5bn, 3.8% lower than our expectation, but 17.5% higher yoy. The margin for the quarter was stronger than expected, due to a gain in the capitalised value of assets of HUF 500m, with the EBITDA margin reported at 11.8%, against our expectation of 10.7%, whilst the reported EBITDA of HUF 881m was 5.4% higher than our forecast. Net income for the quarter was reported at HUF 332m, 13.4% lower than our expectation, due to a significant tax expense of HUF 225m. At this stage, we see some upside risk for our 2018E expectations, with the 9M18 revenues being 89.1% of our FY target; while, at the EBITDA level, the interim results represent 83% of our target, with the main driver of the profitability outperformance being the inventory revaluations, at HUF 766m for 9M18, vs. our FY expectation of HUF 305m. Given that the upside comes mainly from one-off items, such as inventory revaluation, we see the results as negative overall. Excluding the inventory revaluations, EBITDA would be HUF 1.6bn for 9M18, at a 7% margin, significantly below our expectations, whilst the wage cost pressure and material expenses are affecting the margin negatively.Any Security Printing is a securities products group based in Hungary. Co. produces security products and solutions (tax stamps. stickers with security elements), plastic and paper cards (document cards, bank and telephone cards, commercial cards), personalized business and administration forms, and conventional printing products. Co.'s product offering its organized along three segments: Security Products, Solutions (paper-based documents, excise and tax stamps, security printers and security inks, additives); Card Production, Personalization (document cards, bank cards and loyalty cards); and Form Production, Personalization (transactional mailing, business, lottery and election forms).
WOOD & Company is the leading investment bank in Emerging Europe. Founded in 1991 and head-quartered in Prague, our footprint spans the region and touches investors around the globe.
A pioneer in Emerging Europe, WOOD executed many of the first CEE equity trades and landmark investment banking transactions. Our electronic trading platform was the first in the region, and remains the best. We are continually expanding our relevance and reach in these ever-evolving markets.
Our equity market share reflects our stature: 7% in Warsaw, 20% in Bucharest, 16% in Hungary, 40% in Prague and 5% in Vienna. Our distribution is unparalleled, with the largest salesforce in the region, servicing a uniquely diverse investor base.
We couple local expertise with a truly international perspective. With offices on the ground in the region, and in key financial hubs such as London and Milano, we are never far from our clients and we remain at the forefront of what’s afoot in the CEE emerging and frontier landscape.
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