Primoco UAV SE, Doubles the Profit and Tripled the Revenue in the First Nine Months of the Year

Primoco UAV SE, the manufacturer of unmanned aerial vehicles, reported sales of CZK 372 million in the year to September 30, 2023, three times more than in the same period last year. Net profit doubled year on year to CZK 126 million. The company’s best-ever financial results reflect the growing demand for Primoco UAV aircraft, spare parts, pilot training, aerial work and other related services. The shares of the company, traded on the Prague Stock Exchange, reached CZK 900 per share at the end of the third quarter, having appreciated by nearly 120% since the beginning of the year. The market capitalization of Primoco UAV exceeded CZK 4 billion.

Czech manufacturer Primoco UAV continues to benefit from strong demand for UAVs and other related services. The company’s Q3 2023 results showed dynamic growth in both revenue and profit, confirming that 2023 is the company’s record year so far. “In the third quarter, we continued to focus on efficient execution of our contracted orders, the volume of which now utilises our existing production capacity and supports further expansion. At the same time, we have completed a new version of the control system, which has increased the level of automation and air traffic safety. The combination of strong demand and continued innovation gives us an excellent foundation for the company to continue to grow at a rapid pace,” said Ladislav Semetkovský, founder and majority shareholder of Primoco UAV.

In the first nine months of the year, the company delivered 22 UAVs to customers, which significantly contributed to the growth of sales and increase in net profit. At the same time, it concluded new contracts for the supply of 33 aircraft and related services with a total value of CZK 690 million. In addition, negotiations for the delivery of a total of 78 aircraft to 8 different customers are now at an advanced stage. “With regard to the level of new business in progress, we confirm our previously published forecast that new contracts concluded in 2023 will reach an aggregate value of CZK 1 billion. For the next 12 months we expect to conclude contracts in the volume of CZK 1.8 billion,” Semetkovský said.

The company’s favourable economic results are also reflected in the price of Primoco UAV shares traded on the Prague Stock Exchange. During the third quarter alone, their price rose by a fifth to CZK 900 per share. The valuation has increased since January 1st by almost 120%. The company’s market capitalisation now exceeds CZK 4.2 billion. After September’s increase of the free float to 18%, Primoco UAV plans to meet the needs of investors from the beginning of 2024 and move from the START market for small and medium-sized enterprises to the main market of the stock exchange. This step is linked to the mandatory introduction of financial reporting in IFRS, which Primoco UAV is now implementing in co-operation with the consulting company EY.

The preparation of project documentation for the construction of a new automated factory on our own land in the area of Písek-Krašovice Airport is also continuing. The company expects to start the building permit procedure in March 2024, construction in 2025 and the new plant is planned to increase production capacity to 250 aircraft per year per shift from 2027, more than triple the current level. The project will also include the construction of a new control centre for the operation of Primoco UAVs worldwide, a state-of-the-art pilot training centre and a research department for new technologies.

Primoco UAV SE is continuing the process of certification according to the NATO military standard STANAG 4703 and maintaining its emphasis on innovation, which has ensured that the One 150 UAVs are among the world’s best in their category. “During the summer, we completed a new software and hardware version of the aircraft’s control system. This is the next step, which, based on flight experience, allows us to move towards full automation and even greater air traffic safety. Primoco UAV has so far invested CZK 3 million in this project alone,” Semetkovský said, adding that Primoco’s approach to innovation played an important role in the decision by Airbus Defence and Space and its subsidiary Airbus DS Airborne Solutions to enter into a memorandum of understanding with the Czech manufacturer in June this year.

Financial results of Primoco UAV SE in Q1-Q3 2023 (unconsolidated and preliminary) in thousand CZK:

30/09/202230/09/2023

Revenues102 615371,715

Cost-46,419-222,621

Operating profit/loss56,196149,094

EBITDA58,682149,076

Profit before tax56,652147,163

Income Tax 020,900

Profit after tax56,652126,263

30/09/202230/09/2023

Fixed Assets33,69350,013

Current assets109,886244,926

            of which – inventory50,41663,859

      of which – bank accounts and cash43,486149,876

      of which – receivables15,98431,191

Prepayments and accruals049

Total assets143,588294,988

Equity141,061271,017

Short-term liabilities2,43423,971

Total liabilities143,588294,988

Primoco UAV One 150 sales overview:

31/12/202230/09/2023

Orders / undelivered aircraft2233

Revenue / aircraft delivered1222