Audited statements and Corporate Governance report of „SAF Tehnika” for financial year 2023/2024
Net turnover of the “SAF Tehnika” Group in the 2023/2024 financial year was 27.09 million euros, which is EUR 10.17 million or 27% less than in the previous financial year. The net turnover of the Parent company in FY 2023/2024 was EUR 23.26 million, which is EUR 8.78 million or 27% lower than in the previous FY 2022/2023. The Board of the Parent company proposes to keep the profit for the reporting year as retained earnings.
“SAF Tehnika” publishes its audited consolidated and non-consolidated financial statements for financial year 2023/ 2024 (from July 1, 2023 - June 30, 2024) according to Section 56th, 5th paragraph of „Law on the Financial Instruments Market”.
During the reporting year, the development and improvement of the microwave wireless data transmission product line continued. The Group continues to actively research the market and identify key issues in order to propose necessary product modifications and develop prototypes for next-generation technologies. At the same time, the Group develops IoT solutions for both business and consumer segments, diversifying its product line, creating higher added value for SAF Tehnika product offerings, and increasing the Group’s revenue.
Exports made 96.53% of the turnover and amounted to EUR 26.14 million, the Group exported its products to 88 countries worldwide.
The largest drop in net turnover was observed in the Americas region, and there is not just one specific reason for this, but several factors. In one of the Group’s sales divisions, the implementation of several projects was temporarily suspended, and, due to intense competition, the initially planned sales prices for some projects had to be reduced. Furthermore, several key partners had already made warehouse purchases in the previous financial year, resulting in a decline in orders for 2023/2024.
The Group’s operations in previous years were impacted by the global shortage of various electronic components. By regularly reviewing procurement volumes and deadlines, the company accumulated material reserves (inventories) to be able to fulfil most of the orders within normal lead times. During the financial year, delivery times have significantly improved. Following the precautionary principle, total provisions for slow-moving inventory (compared to the volume at the end of the previous financial year) increased by EUR 1.8 million.
During the reporting year, the Group invested EUR 1.29 million into IT infrastructure, production and research equipment, purchase of software and licenses, product certification, as well as in the renovation of premises.
The Group ended the financial year 2023/2024 with losses of EUR 2.37 million.
The Parent company’s financial result for FY 2023/2024 was a loss of EUR 1.34 million EUR.
The Group’s management assesses the loss situation for the reporting year as temporary. The Group continues to monitor potential cost increase forecasts and assess the associated risks. The Group will continue its chosen strategy of developing competitive wireless data transmission products and solutions for new export markets, focusing on strategic market niches in terms of both products and regions.
The Board of the Parent Company proposes to cover the losses from the reporting year with profits from previous years.
Zane Jozepa
CFO, Member of the Board
Zane.Jozepa@saftehnika.com
