Business Forum • 28 June, 2024 at 9:41 AM
IT Genetics, a Romanian group specialized in providing hardware and software solutions for the optimization and digitalization of operational processes, with an international presence in Hungary, Bulgaria, Spain, and Italy, recorded a consolidated turnover of RON 70,6 million in 2023, up 20% compared to 2022. The consolidated EBITDA amounted to RON 3.4 million, a 209% increase, and the consolidated net profit was RON 2.4 million, a 300% appreciation.
IT Genetics activity focuses on three essential pillars: AutoID (AIDC - automatic identification and data collection), POS (point of sale), and IA (industrial automation), providing advanced solutions that optimize supply chains, improve the customers' experience at the sale points, and transform production processes. The technologies, such as barcode scanners, RFID, and control systems, enable accurate product tracking, efficient inventory and resource management, and cost reduction. At the same time, the group's traceability, asset management, and inventory solutions contribute significantly to the efficiency of commercial operations, supporting companies in the digitalization and automation process to increase their competitiveness in the fields in which they operate.
"The financial performance recorded in 2023 reflects the commitment and efforts of our team in providing high-quality solutions that meet the market's needs. The noted increases in turnover, EBITDA, and net profit underline the success of our innovation and international expansion strategy. We will continue to focus on the continuous development of advanced technologies and improving our customers' experience, providing customized solutions that optimize their operational processes and increase their efficiency. We are dedicated to supporting the digitalization of companies in various industries and to remain a reliable partner in their digital transformation", stated Liviu Sima and Stefan Axinte, co-founders of IT Genetics.
Regarding the revenues recorded at the level of the markets in which the group operates, the company in Romania generated the largest share, 91%, while the entity in Hungary contributed 4%, the one in Bulgaria with 3%, and the one in Spain with 2%. The Italian entity was not included in the consolidated results because the group entered this market at the end of 2023.
In 2023, IT Genetics served over 11,500 clients in Romania, from production, retail, IT, services, utilities and energy, automotive, and public institutions. Of the total revenues recorded in Romania, hardware sales represented 56%, solutions 33%, and services 11%. During 2023, the demand for efficiency solutions through digitalization and automation continued to remain at a high level.
"The results achieved in 2023 confirm our strategy to invest in innovation and respond promptly and efficiently to our customers' requirements. 2023 also marked an important milestone for IT Genetics, where we were able to consolidate our market position and expand sustainably. For this year, we aim to continue growing, consolidate our international presence, and diversify our portfolio of products and services to meet the evolving needs of our customers. Our long-term objective is to become a leader in digital transformation at the European level," stated Adriana Arhire, CEO of IT Genetics.
As for international entities, IT Genetics Hungary, present in this country through the eCommerce platform ITGstore.hu, ended 2023 with revenues of RON 2.7 million and a significant increase in activity based on the delivery of solutions and IT hardware customized according to the specifics of customers in this country. In 2023, IT Genetics Hungary has seen significant growth in the demand for warehouse automation and inventory management solutions amid the rapid development of e-commerce and logistics. In addition, retailers in this country are investing in modern technologies to improve the customer experience and remain competitive. This has led to an increased demand for advanced POS solutions, self-service payment systems, and customer loyalty solutions. At the same time, Hungary is a market where the government supports the digitalization process of companies by implementing various programs and incentives for multiple sectors of the economy.
Considering the context of the Hungarian market for AIDC and POS solutions, IT Genetics aims to capitalize on the significant growth opportunities in 2024 by offering quality solutions tailored to the specific needs of local customers and by adapting the sales strategy to the acquisition preferences of consumers.
In 2023, IT Genetics Bulgaria, present in this country through the eCommerce platform ITGStore.bg, recorded revenues of RON 2.6 million. IT Genetics is seeing increased demand for labeling and traceability solutions in Bulgaria, especially in the food industry, characterized by strict regulations, inventory management, and supply chain optimization. In addition, government investments in digital infrastructure and business support programs encourage companies to adopt modern technologies to improve their efficiency and competitiveness.
Therefore, in 2024, IT Genetics Bulgaria aims to continue expanding the business, capitalizing on the high potential for development in a market where local buyers, especially in the retail, logistics, and manufacturing sectors, are increasingly interested in modern high-standard technologies but affordable in price.
IT Genetics Spain, present in this country through the eCommerce platform ITGStore.es, generated revenues of RON 1.7 million in 2023. The market in Spain is influenced by the rapid growth of e-commerce, which causes an increased demand for inventory management and traceability solutions. Spanish retailers are investing heavily in digital technologies to optimize operations and improve the customer experience, while the HoReCa sector is looking for advanced solutions to manage reservations and offer personalized services. Also, strict food safety regulations are increasing the demand for AIDC solutions to ensure compliance.
In 2024, IT Genetics Spain plans to consolidate its presence in this country, considering the growing demand for data collection and POS solutions in the retail and HoReCa sectors. Also, more and more companies are interested in solutions that can improve the customer experience, increase operational efficiency, and gain valuable information about sales and customer preferences. Considering the opportunities in this market, IT Genetics Spain aims to reach a turnover of €2 million in the next two years.