• ●  The further increase in the ‘gifts’ category compensated for the return to a normal level in the sales of books and prints, after the exceptionally strong sales in 2020. As a result, the operating income for the first 6 months remained more or less stable compared to last year, and amounts to kEUR 21,060 as at June 30, 2021, compared to kEUR 21,167 as at June 30, 2020 (-0.5%).
• ●  The opening of the new factory and the expansion of the teams to support the growth resulted in higher fixed costs, and as anticipated, put pressure on profitability over the first 6 months, with traditionally lower volumes. The EBITDA decreased from kEUR 2,699 to kEUR 965 (-64.2%).
• ●  The net result amounts to kEUR -824 over the first half of 2021 compared to a net result of kEUR 863 over the first half of 2020.
• ●  Positive evolution of the Net financial debt (-)/Net cash and cash equivalents on an annual basis from kEUR -1,197 to a cash surplus of kEUR 881, and this despite the dividend payment for 2020 (kEUR 2,249), the further purchase of treasury shares (kEUR 1,015), and the investments in property, plant and equipment and intangible assets (kEUR 2,104), of which mainly investments necessary to bring the additional production building into use.
• ●  Despite the limited visibility over the past months, amongst others due to Covid-19, smartphoto confirms growth in revenue and EBITDA on an annual basis.Key figures

  Non-audited figures, prepared in accordance with IFRS.

Explanation

Smartphoto group, the innovative e-commerce group from Wetteren, had a strong first quarter in 2021, following the exceptionally strong year of 2020. For the months of April and May 2021, the easing measures regarding the Covid-19 virus (coronavirus) led to normal sales volumes in books and prints compared to 2020. This decline was compensated by the continuous increase in the ‘gifts’ category, which once again registered a double-digit growth.

As a result, the revenue for the first 6 months of 2021 remained rather stable compared to June 30, 2020, and amounts to kEUR 21,060 as at June 30, 2021 compared to kEUR 21,167 as at June 30, 2020 (-0.5%).

The product range of smartphoto is constantly being expanded. For example, personalisable Belgian chocolate with a photo and/or text, or a chocolate telegram consisting of letters, spaces and icons (to create a personal message), now belong to the products of smartphoto. You can also call on smartphoto for personalisable fluorescent jackets so you can cycle in a fun way safely to school with your children. In addition, many new designs, new models or new materials were added to existing products, and the number of products with fast delivery “Ordered before 4.00 p.m., delivered tomorrow!” was further expanded.

Also in the second half of 2021, new products will further expand smartphoto’s product range.

Revenue in the first half of the year is traditionally low compared to the second half, and amounts to, rounded, only one third of the total revenue on an annual basis. These low volumes over the first 6 months of the year, combined with higher fixed costs due to the opening of the new factory and the expansion of the teams to support the growth, put pressure on profitability, as anticipated. The EBITDA decreased from kEUR 2,699 as at June 30, 2020 to kEUR 965 as at June 30, 2021 (-64.2%).

The first half of 2021 was also characterised by a temporary shift in the product mix as a result of the Covid-19 measures that applied in these months. In the second half of the year, when it will again be possible to travel and have family gatherings and parties, the demand for photo products and personalised gifts will increase, on top of the traditionally most important half of the year for the activities of smartphoto group.

Taking into account the above, and the known seasonality, the net result amounted to kEUR -824 as at June 30, 2021, compared to a net result of kEUR 863 in the first half of 2020.

Financial result

The financial result improved by kEUR 127 from kEUR -234 as at June 30, 2020 to kEUR -106 as at June 30, 2021. This increase of the financial result is mainly due to the positive impact of the exchange rate gains/losses of kEUR 133, the decrease of the financial expenses from interest-bearing financial liabilities and lease liabilities of kEUR 8, and the negative impact of the other financial expenses of kEUR 14.