Wellis Q1 Report 2023
- The global political and economic turmoil forced Wellis Group off the planned business track
- Despite the lower demand Wellis Group managed to maintain its sales volumes and increase its sales revenue as a cumulative effect of price increase and HUF deterioration. Wellis sold 4 557 pcs, total sales revenue reached HUF 9.6 bn in Q4 2022. Total sales reached HUF 50 729 mn in 2022.
- Downsized operation, strict cost control and NWC management together with a new, energy efficient product line will help Wellis strengthen its financials in 2023, cca. 300 items already produced in early 2023.
- The Group has increased its external financing with HUF 7.8 bn of short term credit facilities from domestic banks during 2022.
- Moderate growth strategy with focus on solid profitability and healthy balance sheet structure.
Working capital financing need has exceeded the profitability in 2022, resulting in negative operating cash flow. Higher profitability and improving NWC management expected to result in improving operating CF in 2023.
