November 25 (SeeNews) - Romanian technology company Visual Fan [BSE:ALW], operating under the Allview brand, said that its net profit dropped by an annual 48.8% to 2.1 million lei ($444,181/426,396 euro) in the first nine months of 2022 due to a decrease in consumer purchase power.
The company’s nine-month turnover decreased to 59.3 million lei, from 83.4 million lei booked in the same period last year, Visual Fan said in a financial report filed with the Bucharest Stock Exchange on Thursday.
The results are marked by macroeconomic uncertainties, as risks brought about by the war in Ukraine, the energy crisis, along with inflationary pressures on raw materials and supply chains contributed to price increases and reduced consumer purchase power, the company added.
Operating expenses decreased to 56.9 million lei in the January-September period, from the 77.9 million lei in the same period of last year.
Total assets diminished to 115.7 million lei in the first nine months of 2022, from 123.5 million lei at end-September 2021.
Debt decreased from 47 million lei at end-September 2021, to 39.3 million lei at the end of September 2022.
In order to mitigate anticipated risks regarding shortages of raw materials and currency fluctuations, Visual Fan elevated its stock levels and signed new contracts.
Visual Fan Group, which includes 100% of Visual Fan (Allview), 51% of Intervision Trading, 11% of Headlight Solutions and 95% of Visual EV Distribution, booked a net profit of 4.6 million lei during the first nine months of 2022, up compared to a 4.1 million lei gain in the same period last year.
The group’s nine-month turnover from recurring activities fell to 78.5 million lei, from 83.2 million lei booked during the same period of last year.
In 2021, Visual Fan booked a net profit of 8.4 million lei, and a 121.3 million lei turnover, data from the finance ministry’s website shows. At end-2021, the company employed 67.
Visual Fan shares traded 4.9% lower at 8.54 lei on the AeRO market of the Bucharest Stock Exchange as of 1034 CET on Friday.
(1 euro=4.925 lei)