Primoco UAV, Czech UAV manufacturer, doubled its sales and profit in the first half of the year. Its share price increased by 75%

Primoco UAV more than doubled its sales year-on-year to CZK 213.4 million in the first half of 2023. EBITDA was over CZK 100 million for the first time in the company’s history and it also more than doubled compared to the same period last year. Demand for Primoco UAV products and services continues to grow and, following the favourable financial results and the outlook for the future, the market capitalization of the company, whose shares are listed on the START market of the Prague Stock Exchange, is also growing. Since the beginning of the year, the share price has increased by more than 75% to CZK 720 per share. The market value of Primoco UAV is almost CZK 3.5 billion.

Primoco UAV has expanded its successful business in the first half of this year, once again recording dynamic growth in all key metrics. The year-on-year more than doubling of sales and profit is mainly due to the increased demand for unmanned aerial vehicles, which Primoco UAV develops and manufactures in the Czech Republic. “During the second quarter of 2023, we closed our largest single contract to date for the delivery of 18 aircraft for a European customer. However, beyond Europe, where customers only fully understood the high added value of UAVs after the Ukraine conflict, we are also seeing increased interest in our technology in Asia and Africa,” said Ladislav Semetkovský, CEO, founder and majority shareholder of Primoco UAV.

This year Primoco UAV has already concluded new contracts for the supply of 29 UAVs with a total value of CZK 515 million. According to the company’s management, negotiations on new orders for the production of 14 more UAVs for non-European customers are at an advanced stage, with completion expected in the third quarter of 2023. Last year, the value of new contracts amounted to CZK 400 million with a total of 22 UAVs ordered.

At the end of the first quarter of 2023, Primoco UAV estimated that this year’s new orders would reach CZK 1 billion, based on concluded contracts and negotiations with potential customers. “The results of the first half of the year make it possible to confirm this outlook and unless there is a sudden change in the economic environment in which Primoco operates, it is possible that we will even exceed this estimate, perhaps to CZK 1.2 billion.” Semetkovský added. “With the growing number of aircraft delivered in total, revenues from service, maintenance and crew training are also growing.” The company expects full-year revenues to reach CZK 750-850 million this year based on orders placed, the company’s production capacity and expected deliveries.

The company’s favourable economic results for the first half of the year and the outlook for further growth in the future are also reflected in the value of Primoco UAV shares traded on the Prague Stock Exchange. Since the beginning of the year, the share price has grown by more than 75% to CZK 720 per share. The shares have appreciated by 148% year-on-year and the market capitalization of Primoco UAV is now almost CZK 3.5 billion. In this context, the company confirms its previously announced intention to prepare for the transition of the listing from the START market for small and medium-sized enterprises to the main market of the Prague Stock Exchange in 2024. The transition to the Prime Market would open the way for Primoco UAV to increase its liquidity and thus its inclusion in the main index of the Prague Stock Exchange.

At the same time, Primoco UAV continues with the certification of its UAVs under the NATO military standard STANAG 4703. The whole process has now reached the final testing phase, with the aim of completing everything needed during the autumn of 2023. The company has also started preparing project documentation for the construction of a new factory. It is to be built on land in the area of Primoco UAV’s own airport in Písek – Krašovice.  The company will unveil the architectural design in October 2023, and the plan is to launch the new factory in 2027. This will increase production capacity from the current 100 UAVs per year to 250 UAVs, while maintaining single-shift operation. In addition to the maximum level of robotics and automation, the project also includes the flight control of Primoco UAVs around the world and a new training centre for pilots.

The Memorandum of Understanding that Primoco UAV’s CEO signed with Airbus Defence and Space and its subsidiary Airbus DS Airborne Solutions in June is also a very promising step for the future. This document clearly represents a significant milestone for Primoco UAV. It is a confirmation that the world leader in aviation sees the Czech manufacturer as a key pioneer in the field of unmanned platforms. At the same time, it is the first step towards establishing a long-term business relationship. “Airbus Defence and Space is a global leader in aerospace solutions in more than 170 countries. Its knowledge base, including advanced research activities, experience in deploying sophisticated systems, and breadth of portfolio across multiple platforms, will allow us to explore new capabilities of our unmanned aircraft system at a completely different level. Thanks to the common European background, the results of this cooperation will be particularly beneficial for European industry,” said Semetkovský, CEO of Primoco UAV.

Financial results of Primoco UAV SE for the first half of 2023 (unconsolidated and preliminary) in thousands CZK:

30/06/202230/06/2023
Revenues102,814213,369
Cost-50,364-113,753
Operating loss/profit52,45099,616
EBITDA50,577109,709
Profit before tax49,168108,576
Income tax20,900
Profit after tax49,16887,676
30/06/202230/06/2023
Fixed assets32,78441,554
Current assets127,510284,900
      of which – inventory27,960106,896
      of which – bank accounts and cash84,112177,703
      of which – receivables15,438301
Estimated accrued expenses942
Total assets160,303326,496
Equity133,577234,330
Short-term liabilities26,49892,166
Total liabilities160,303326,496

Primoco UAV One 150 sales overview:

31/12/202230/06/2023
Orders / undelivered aircraft2229
Revenue / aircraft delivered1221

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