TrenDevice Spa Posts 7% Revenue Growth in Q1 2024 Despite Online Pressures

TrenDevice Spa reports 7% revenue growth to EUR 4.44 million in Q1 2024, driven by physical retail channel expansion. However, EBITDA declines 57% to EUR 154,000 due to lower margins and extraordinary income.

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Aqsa Younas Rana
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TrenDevice Spa Posts 7% Revenue Growth in Q1 2024 Despite Online Pressures

TrenDevice Spa Posts 7% Revenue Growth in Q1 2024 Despite Online Pressures

TrenDevice Spa, a high-tech product refurbishment company listed on Euronext Growth Milan, has reported a 7% revenue growth to EUR 4.44 million in the first quarter of 2024, compared to the same period last year. The increase is attributed to the expansion of the company's physical retail channel, with new store openings in Torino, Bergamo, and Brescia between the second and third quarters of 2023.

Why this matters: This revenue growth and shift towards physical retail channels reflects a broader trend in the tech industry, as companies adapt to changing consumer behavior and online market pressures. As more businesses follow suit, this could lead to a significant shift in the way products are sold and consumed, with potential implications for the entireretail landscape.

Despite the revenue growth, TrenDevice Spa's EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) declined to EUR 154,000, a 57% decrease from EUR 369,000 in Q1 2023. The decline is due to two main factors: lower margins on refurbished products caused by increased competitive pressure in the online channel and lower extraordinary income related to the conclusion of the ReFive project with the Campania Region.

Alessandro Palmisano, CEO of TrenDevice Spa, commented on the results, stating, "The first quarter 2024 closed with growth thanks to the expansion of the physical retail channel, with three openings finalized starting from Q2 2023. Although the ramp-up phase of the new sales points is still ongoing, we have obtained a tangible benefit on revenues in the first three months of 2024. On the online channel, however, during the period analyzed, the Company suffered stronger competitive pressure than usual, resulting in lower-than-expected margins, which, combined with lower extraordinary income from the ReFive project, led to a reduction in EBITDA." The development of TrenDevice's network of physical stores remains a central and strategic part of the company's business plan. By expanding its retail presence, TrenDevice aims to reduce its reliance on the online channel, which is characterized by greater competitive pressure. In 2023, the percentage of revenue from physical retail channels had already exceeded 20%, demonstrating the effectiveness of this strategy.

On Thursday, TrenDevice's shares closed 0.8% lower at EUR 0.25 per share, reflecting the market's reaction to themixed financial results. As the company continues to navigate the challenges of the online market while expanding its physical retail presence, investors will closely monitor its performance in the coming quarters.