Azkoyen Group, a leading Spanish technology multinational, which offers automated products and services designed to bring unique experiences to people in their daily lives, today announced its results for the first half of 2022, in which it recorded a net turnover of 77.8 million euros, recording an 18% increase compared to the same period of the previous year. This growth was driven by the growth in the Coffee & Vending Systems and Payment Technologies business areas.
The sound financial position, geographic diversification, and the ability to innovate and adapt its range to meet current demands, have enabled the Azkoyen Group to significantly improve its turnover, keeping the gross margin at 43.3%, increasing by 17.9% to 33.7 million euros.
Fixed costs have increased by 8.5%, in accordance with the growth plans established for the 2022 financial year. EBITDA has climbed to 12.2 million euros, 15.6% of sales, which represents a growth of 30.6%. Moreover, consolidated profit after tax for the first half of the 2022 financial year amounted to 6.6 million euros, which represents an increase of 23.2%.
These results have been achieved in a difficult business climate, dominated by inflationary pressures, cost overruns, the continuing negative impact of the pandemic on supply chains and global uncertainty due to the conflict in the Ukraine.
The strength of its results and its financial position have enabled it to pay out a dividend of 25.8 million euros.
In terms of consolidated turnover by region, Spain accounted for 15.3% of the total volume, 24.7% in Germany, 12.4% in Italy, 7.4% in Belgium, 16.8% in the rest of the European Union, 13.1% in the United Kingdom and 10.3% in other countries.
The Azkoyen Group works every day to distribute its products and services in more than 95 countries across the five continents.
Sales performance by division
The Coffee & Vending Systems division has experienced a growth of 37.5% compared to the same period in the previous year. The growth in the United Kingdom and the United States is noteworthy. Like the others, this division has not stopped innovating and working on a daily basis to meet the needs of customers and users. In this respect, the company launched its new automatic coffee machine Vitro S1 MIA with fresh milk, thus adding to its successful Vitro line. It is worth mentioning the participation in the Nama OneShow in Chicago and in the Venditalia Worldwide Vending Show where it presented the Vitro X1 (NSF-certified) and the NEO Q, respectively, innovative concepts that respond to new social trends and user needs and that promote consumer awareness on the reduction in the consumption of plastics.
The Payment Technologies division reported a 25.3% increase in sales compared to the same period in the previous year. It is also worth mentioning the significant R&D efforts such as Cashlogy, the automated cash control solution that helps to manage the business more effectively and improve hygiene in the establishment. In addition, the division has been working over the last few years on the connectivity of retail and vending machines, developing solutions for the Internet of Things (IOT) and physical and/or digital payments. In fact, the number of the Group’s connected machines grew by more than 30% in the first half of the year.
Meanwhile, the Time & Security (Security systems and technology) division experienced a 2.3% drop in sales in the first half of 2022 compared to the same period last year as a result of project delays, mainly in Germany, due to the effects of the Covid-19 pandemic and disruptions in third-party supply chains, which led to a shift in the timing of project execution. Despite this, order intake increased by 10.1% compared to the same period in the previous year. The division has not ceased to innovate, examples of which are the access control and time & attendance solutions from the Primion Subgroup (such as prime Mobile, prime WebAccess & PSM 2200, prime Visit and Prime CertifiedAccess), which allow the necessary requirements under the “new normality” to be met (tracking and people counting, visitor management, alarm automation, facilitation of teleworking and flexitime, etc.), both for existing customers as well as for new customers and segments.
Key prospects
In addition to the organic growth, the Azkoyen Group will grow inorganically as a result of the two acquisitions made in recent months that have not yet been included in the results for the first half of the year.
On the one hand, the company acquired 100% of the Latvian company, Vendon. This acquisition will help the Group to strengthen its position in the European Payment technologies and IoT Solutions business by reaching more than 100,000 connected machines across the continent.
In addition, the Azkoyen Group has also acquired 100% of the Spanish company, Ascaso, completing its range of coffee, boosting the growth of the Coffee & Vending Systems business line and becoming one of the few full-service coffee suppliers in the world. Furthermore, this acquisition promotes the Group’s geographical and distribution channel diversification.
In this way, the Azkoyen Group continues building the foundations for future growth and results, focusing on its key cornerstones: (i) innovation, (ii) growth in sales outside Europe, (iii) improving efficiency and internal management and (iv) teamwork to achieve collective goals.
The outbreak of the conflict between Ukraine and Russia on 24 February 2022, which still continues today, poses a risk of uncertainty for the world economy. Short-term visibility is still relatively limited given the geopolitical instability. The International Monetary Fund’s forecast for global GDP growth has been revised downwards due to the impact of the conflict and the economic sanctions imposed on Russia, continued inflationary pressures and supply disruptions.
That said, the strong positioning within the different businesses and geographies suggests that the Azkoyen Group is well positioned to face the current situation. The short-term focus continues to be on preserving profitability while increasing revenues by more than 10% and converting EBITDA into cash.
According to Darío Vicario, Managing Director of the Azkoyen Group, “The results for the first half of the year are notable for the good pace of growth in our turnover and our clear commitment to our shareholders. In addition, the recent acquisitions of Vendon and Ascaso have placed us in an unrivalled position in two of our main business lines. Both investments open the door to new markets and distribution channels, providing us with a solid foundation for further growth and the continued creation of value for our shareholders and our customers. The current geopolitical uncertainty poses a risk to the global economy but our business and geographical diversification protects us when dealing with the current situation.”
Moreover, Vicario added “I would like to highlight the work and commitment of the Azkoyen team, who have delivered on the main strategic projects, which has allowed us to take advantage of the unique opportunity for growth in recent years, offset inflation, improve shareholder remuneration and maintain a sound financial position.”