iHunt turns profitable after a loss last year

Online retailer and manufacturer of mobile phones, gadgets and accessories iHunt Technology (HUNT) achieved a net turnover of 31.1 million lei in the first nine months of the year, 4% above that of the same period last year, while net profit amounted to 0.46 million lei, compared to a loss in the first three quarters of 2023, according to the company's report published yesterday on the website of the Bucharest Stock Exchange (BVB).

"In the second half of 2024, iHunt's activity focused mainly on two major directions: (i) the launch of a new range of home appliances, which strengthened the company's position in the retail segment and (ii) the expansion of the network of charging stations for electric vehicles through its own iHunt EV platform, an initiative with high potential and positive long-term impact," the company's report states.

According to the document, the company is focusing its efforts on expanding its network of charging stations for electric vehicles. "The strategy includes a well-defined plan to reach a significant number of active locations by the end of the year, with favorable financial prospects starting in 2025," the report states.

According to the company, the increase in turnover was supported by the expansion of the product portfolio and mainly by the increase in sales volume in the household appliances segment.

In the first three quarters of the year, iHunt had operating expenses of 29.3 million lei, 2% more than in the same period in 2023. Expenses related to goods decreased by 5.5%, to 21.6 million lei, while expenses related to external services and other operating expenses increased by 32.5% and 31.8%, to 5.7 million lei and 5.9 million lei, respectively. Personnel expenses amounted to 1.43 million lei, up by 20.6%.

"The advertising budget recorded significant increases, following the launch of the iHunt EV project, contributing to the rapid scaling of this initiative. The implementation and expansion of the iHunt EV charging station network involved a significant effort, requiring the allocation of approximately half of the company's staff, to which new employees specialized in sales and technicians were added," the report says.

Operating profit amounted to 1.87 million lei, up 61.3% compared to the first nine months of last year, while the company reported a loss of 1.36 million lei from financial activities. For this year, iHunt budgeted a turnover of 40 million lei and a net profit of 1.85 million lei. Last year, the company had a loss of 1.37 million lei.

At the middle of the year, founder Cezar Stroe had 52% of iHunt Technology.