Decent Q3 results

Decent Q3 results EARNINGS/SALES RELEASES Drone Volt released a rather good Q3 trading update, more than doubling its top line and posting a significant improvement in gross margins, despite being affected by a more unfavourable product mix. The outlook remains unchanged for 2024 and 2025, despite the desire to reduce the distribution share in the revenue mix going forward, marking confidence in the new activities. We thus reiterate our positive stance on the stock. FACT Sales grew by 139% c...

INVEST SECURITIES - DRONE VOLT : Confirmation d'une dynamique commerci...

Drone Volt unveiled promising H1 24 results

Drone Volt unveiled promising H1 24 results EARNINGS/SALES RELEASES Drone Volt published its complete H1 24 results yesterday, which were revised downwards on the top line and gross margin levels. Nonetheless, the EBITDA margin trend seems to be reversing towards positive territory, and the group now openly aims to reach it in 2025. This is a strong commitment that could change the equity story if the management manages to deliver. FACT Sales were slightly revised downwards to €23.4m (€23.6...

INVEST SECURITIES - DRONE VOLT : Tenir pour pouvoir délivrer l'objecti...

Lower profitability incorporated (Drone Volt)

Lower profitability incorporated TARGET CHANGE CHANGE IN TARGET PRICE € 0.01 vs 0.02 -36.0% Our target price has been reduced due to the peer-based metrics having been impacted by a lower EBITDA forecast for 2024 and the lack of net profits until 2026 vs 2025 previously. Moreover, this lower EBITDA generation has reduced our DCF-derived valuation, further reducing the target price. Finally, we incorporate the new capital increase with an oversubscription thesis resulting in 19% dilution. CH...

H1 24: Encouraging trajectory

H1 24: Encouraging trajectory EARNINGS/SALES RELEASES Drone Volt has announced its H1 24 sales and gross margin figures, which have come in higher than expected, especially on the top line, thanks to a €12m distribution contract. However, the company has announced a new capital increase to contend with this huge growth phase. We are confident that Drone Volt will achieve its guidance for 2024 and reiterate our Buy recommendation. FACT Sales grew by 49% to €23.6m thanks to a 45% increase in D...

INVEST SECURITIES - DRONE VOLT : Des annonces qui vont dans le bon sen...

Eurosatory takeways

Eurosatory takeways LATEST ANALYSIS Drone Volt announced that the number of prospects reached around 100 at Eurosatory, a major European Defense exhibition, which is “significantly more” than at previous similar events. 90% of them come from international customers, probably mostly European, which is good news for the geographical expansion of the company and might suggest that the European-built Drone Volt Kobra is finding its market. On top of this, Marc Courcelle met the current Armies Min...

Drone Volt on the move

Drone Volt on the move EARNINGS/SALES RELEASES Drone Volt unveiled outstanding results, widely beating its Q1 23 guidance provided two months ago and maintaining its objective of increasing its gross margin and the recurrence. FACT • Sales increased by almost 5x to €8.9m (Q1 23: €1.6m) thanks to the completion of the big distribution contract notably (which was not initiated in the Q1 23) and new orders, smashing the company’s goal to at least double the sales compared to last year. • The g...

INVEST SECURITIES – DRONE VOLT :Encourageant pour le reste de l'année ...

Drone Volt ready for new growth phase

Drone Volt ready for new growth phase EARNINGS/SALES RELEASES Drone Volt announced yesterday its audited FY23 figures, confirming an improvement in profitability despite experiencing several external headwinds. FACT Sales had already been announced at €23.993m, a 75% increase compared to last year. The gross margin was revised slightly upwards to €3.673m, increasing by 27% compared to last year and above the previous estimate of €3.394m EBIT also improved substantially from €-22.039m to €-5....

INVEST SECURITIES - DRONE VOLT : Résister avant la commercialisation d...

New annual sales record and new capital increase

New annual sales record and new capital increase EARNINGS/SALES RELEASES Drone Volt unveiled a promising FY23 trading update but announced a new capital increase to fund its high expected growth. Last year’s performance could have been better without the Chinese restrictions on the sale of drones. FACT Sales for FY23 grew by 74% from €13.7m to €23.9m, beating our estimate and guidance of €23m (revised downwards a month ago). The gross margin for FY23 grew by by 17% from €2.9m to €3.4m, fall...

Target cut by -10.4% (Drone Volt)

TARGET CHANGE CHANGE IN TARGET PRICE € 0.02 vs 0.02 -10.4% We have incorporated the impact of the dilution following the new capital increase of c.€2.5m, which is the main reason for the decrease in our target price. This impact was mitigated by forecasting higher growth in the drone as a service offer given its successful launch, as this service has higher margins than distribution.

INVEST SECURITIES – DRONE VOLT: Visibilité financière étendue de 3 mo...

INVEST SECURITIES – DRONE VOLT : Impact limité mais visibilité financi...

Ambivalent Q3 results

Ambivalent Q3 results EARNINGS/SALES RELEASES Drone Volt released a mixed Q3 trading update with sales below expectations due to supply tensions in the distribution business although a favourable revenue mix allowed the company to post a significant improvement in profitability. The company looks well on the way to achieving its doubling of sales objective for FY23 underpinned by strong dynamism for its new Drone Volt Expert offer. FACT • Sales declined by 23% compared to last year from €3....

INVEST SECURITIES – DRONE VOLT : Visibilité financière jusqu'en juin 2...

H1 23: the beginning of the awaited resurrection

H1 23: the beginning of the awaited resurrection EARNINGS/SALES RELEASES Drone Volt published yesterday its complete H1 23 results which confirmed the good execution of the big distribution contract of €20m with a European player. Demand for the new “drone as a service” offer is strong and driving higher-margin growth for second half of the year. FACT • Sales were slightly lower than expected at €15.9m (which is already more than in FY22 when revenues stood at €13.7m), while the gross margin...

Target cut by -18.6% (Drone Volt)

TARGET CHANGE CHANGE IN DCF € 0.02 vs 0.04 -29.5% Our DCF, and consequently the target price, will be impacted by a higher capex of €4m against €3.35m previously expected to take into account the efforts on developing the new family of drones. We have significantly revised upwards our estimates after FY23 as well to take into account the new willingness of the company to invest in new drones and technologies, which does not seem to be a one-off in our opinion.