Avenir Telecom: first-half losses drive share price down

(CercleFinance.com) - Avenir Telecom shares were down on the stock market on Friday after the designer and distributor of cell phones and mobility accessories reported a loss for the first half of the year.


At mid-day, shares in the Marseille-based group, which markets its products under the Energizer brand, were down by more than 7%.

This morning, the company reported a loss of 3.3 million euros for the first half of its 2023-2024 fiscal year, from April 1 to September 30, compared with a net profit of 0.9 million a year earlier.

As a result of the less favorable evolution of its product mix - which had a direct impact on the profitability of its activities - and costs linked to the reinforcement of its sales teams, operating income came to -3.1 million euros, compared with a loss of 1.7 million for the same period last year.

In its press release, the company explains that its return to profitability must now be achieved by increasing business volumes and optimizing gross margins, two areas in which several strategic initiatives should soon be implemented.

With 24.3 million euros in available cash at the end of September, and no financial debt, the company says it is in a position to consider investments, particularly with a view to boosting its sales momentum.

In particular, the company mentions two promising growth levers, namely 'feature phone' and product diversification through its brands, while continuing to actively study external growth opportunities with the idea of remaining 'extremely selective'.

Copyright (c) 2023 CercleFinance.com. All rights reserved.