(Alliance News) - TrenDevice Spa on Monday reported that it has approved its financial statements for the year ended Dec. 31, 2022, having reported a loss of EUR1.4 million, worse than the loss of EUR961,000 reported in the same period last year.

Revenues amounted to EUR19.8 million, up 25 percent from EUR15.8 million as of December 31, 2021.

Ebitda stood at EUR745,000, up 53% from EUR488,000 in the previous year.

Net debt financial position is EUR5.6 million, up 38 percent from EUR4.0 million as of Dec. 31, 2021.

Antonio Capaldo, chairman of the board of directors and co-founder of TrenDevice hhas commented, "A satisfactory year has closed in terms of both revenue growth and margin improvement. In particular, starting in the second half of FY2022, management decided to prioritize marginality growth over revenue growth, which occurred at a higher rate in the first half of FY2022: with this in mind, the foreign marketplace channel was abandoned and less aggressive product pricing was applied."

For the future, "during 2023, management believes that the online competitive pressure from foreign competitors will continue, strengthened in the past two years by the raising of substantial financial resources: this, in addition to leading to an increase in advertising costs on digital channels, increases for the company the pressure on the pricing of refurbished devices."

"Needing, however, to identify the right level of trade-off between revenue growth and obtaining satisfactory margins, as early as 2022, management has opted for a strategy of more restrained revenue growth to the benefit of marginality: in this perspective, there is also the exit from the commercial channel related to marketplaces. This policy, combined with cost cutting, has generated significant marginality results already in the first quarter, even net of the operating grants obtained," the company explained in a note.

"For 2023, it is management's intention to continue with a pricing policy that will prioritize the constant increase in margins at the expense of the revenue growth rate. Also with this in mind, the company will continue investing in the opening of directly managed physical retail stores in 4 new Italian cities: Turin, Bergamo, Brescia and Verona."

TrenDevice on Monday closed in the green by 1.3 percent at EUR0.31 per share.

By Claudia Cavaliere, Alliance News reporter

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