1
Annual consolidated financial statements for the year ended
December 31
st
, 2023
These financial statements have been translated from the original statutory financial statements that have been prepared in the Greek language. In the event
that differences exist between this translation and the original Greek language financial statements, the Greek language financial statements will prevail over
this document.
Quest Holdings S.A.
Reg.No. 121763701000
2a Argyroupoleos Street
GR-176 76 Kallithea
Athens - Hellas
Financial statements for the year ended 31 December 2023
(Amounts presented in thousand Euro unless otherwise stated)
3
I.
Statement by the Members of the Board of Directors
(in accordance with article 4 paragraph 2 of Law 3556/2007)
The members of the Board of Directors, Mr. Theodore Fessas, Chairman, Mr. Apostolos Georgantzis, CEO, and Mr. Markos Bitsakos, Deputy
CEO, under their above capacity, declare that to the best of their knowledge:
-
The enclosed separate and consolidated Financial Statements of Quest Holdings S.A. (the ‘Company’) for the year from 1 January to 31
December 2023 that have been prepared in accordance with the International Financial Reporting Standards (‘IFRS’), present in a true
and fair manner the assets, liabilities, equity and results of the Company, as well as of the companies included in the consolidated
financial statements taken as a whole (the ‘Group’).
-
The enclosed Report of the Board of Directors presents in a true and fair manner the development, performance and financial position
of the Company, as well as of the Group, including the description of the principal risks and uncertainties that they face.
Kallithea, 3 April 2024
The Chairman
The CEO
The Deputy CEO
Theodore Fessas
Apostolos Georgantzis
Markos Bitsakos
Financial statements for the year ended 31 December 2023
(Amounts presented in thousand Euro unless otherwise stated)
4
II.
Annual Report of the Board of Directors
1.
Significant events
5
2.
Significant events after the balance sheet date
8
3.
Performance Review
9
4.
Risk factors
12
5.
Related party transactions
16
6.
Address of the Company
19
7.
Outlook 2024
19
8.
Corporate Governance Statement
30
9.
Non-financial performance review
75
10.
Information of art.50 par.2 of Law 4548/2018
106
11.
Explanatory Report of the Board of Directors
(par. 7 and 8 of Law 3556/2007)
106
Financial statements for the year ended 31 December 2023
(Amounts presented in thousand Euro unless otherwise stated)
5
Annual Report of the Board of Directors
The Report of the Board of Directors of Quest Holdings SA (the Company) refers to the period from January 1st, 2023 to December 31st of
the closing fiscal year 2023 and reflects the actual the development and performance of the Company’s and the Group’s activities, objectives,
strategy and significant events. Furthermore, the Report includes a description of the main risks and uncertainties, the non-financial items,
the corporate governance statement, the significant transactions of the Company and the Group with their affiliated parties, as well as
additional information as required by law.
The Report was prepared pursuant to the relevant provisions of Law 4548/2018, Law 3556/2007 and Decision 8/754 of the Board of Directors
of the Hellenic Capital Market Commission dated April 14th, 2016.
The closing fiscal year is the thirty-seventh in a row and covers the period from January 1st, 2023 to December 31st, 2023.
The Group “Quest Holdings SA”, besides the Company, includes the subsidiaries, which the Company directly or indirectly controls.
The financial statements (consolidated and separate), the auditor's report and the management report of the Report of the Board of Directors
of the Company are posted on the web site:
.
The financial statements and audit reports of the Group companies that are consolidated and are not listed (according to Decision
8/754/14.04.2016 of the Board of Directors of the Hellenic Capital Market Commission) are posted at the following web address:
.
During the current fiscal year, the Company’s activities were compliant with the applicable legislation and its objectives, as defined in its
Article of Association.
The Board of Directors, aiming to review the Company’s operations, as well as the Company’s and its subsidiaries’ specific financial
information (the Group), would like to inform you about the following:
1.
Significant events of the year
During the closing fiscal year, the following significant events took place:
Acquisition of company “EPAFOS S.A.”
On May 22, 2023 the Company proceeded with the acquisition of 100% of the share capital of company EPAFOS S.A. against a
consideration of € 2.470.000, whereas the total investment may potentially reach € 4.940.000 during the next two years due to the
provision of additional disbursements to the old shareholders depending upon the future performance of the company. The specific
investment is estimated to contribute around € 6.000.000 extra revenue to Quest Group on an annual basis, at an EBITDA margin of
near 10%.
The company “EPAFOS” has been developing integrated information systems to streamline the management and operations of
educational organizations for the past 30 years.
It holds a leading position in its market segment with a customer base of 3.000 active
customers in the sector of education and a market share of approx. 80% offering a wide range of IT solutions and related services.
Announcement of the transaction for the transfer of participation of Th. Fessas
On 29 May 2023, Mr. Theodore Fessas, Chairman of the Board of Directors of the Company, transferred as contribution in kind
53.634.195 shares of the Company to the company Tedinvest Ltd, which he owns by 100%. The transfer of shares was executed through
an over the counter and free of payment (FoP) transaction. The change in the interests and relevant voting rights is as follows:
Number of shares and equal voting rights before the transaction:
Direct participation of 50,021% (namely 53.634.195 common shares
with voting rights), indirect participation of 0% (namely 0 common shares with voting rights) and total participation in number of shares
and voting rights (direct and indirect) 50,021% (namely 53.634.195 common shares with voting rights).
Number of shares and equal voting rights after the transaction:
Direct participation of 0% (namely 0 common shares with voting
rights), indirect participation of 50,021% (namely 53.634.195 common shares with voting rights) and total participation in number of
shares and voting rights (direct and indirect) 50,021% (namely 53.634.195 common shares with voting rights).
Financial statements for the year ended 31 December 2023
(Amounts presented in thousand Euro unless otherwise stated)
6
Resolutions of the Ordinary General Meeting of the Company
On 15/06/2023 the Ordinary General Meeting of the Company’s shareholders took place. The quorum required by the law and the
Articles of Association was ascertained at the General Meeting and the Meeting resolved on all items of the agenda, as follows:
Item 1
Submission for approval of the annual financial statements as at December 31, 2022 (individual and consolidated financial
statements), in accordance with the International Financial Reporting Standards (IFRS), together with the Report of the Board of
Directors and the Auditors’ Report
The General Meeting unanimously approved the annual financial statements (individual and consolidated) for the fiscal year 2022, in
accordance with the International Financial Reporting Standards (IFRS), together with the reports of the Board of Directors and the
Auditors thereon, in accordance with Law no. 4548/2018, as in force.
Item 2
Approval of distribution of profits for the fiscal year 01.01.2022-31.12.2022 and distribution of dividend to the shareholders, and
approval of the distribution of the retained earnings of previous years
The General Meeting approved the distribution of profits for the fiscal year 01.01.2022-31.12.2022 and in particular approved the
distribution of a dividend for the fiscal year 2022 amounting to the gross amount of €0,130758 per share excluding the treasury shares
that the Company will hold at the record date, as well as approved
the distribution of
the balance of
retained earnings
for
the
fiscal
year 2019 amounting in
total
to €1.277.967,30
and
part
of
the
balance
of
retained
earnings
for the
fiscal
year
2020
amounting
in
total
to €6.146.378,98, i.e., a gross amount per share for 2019 and 2020) of €0,069242 excluding the treasury shares held by the
Company at the record date, i.e., according to the above, the total gross amount per share to be distributed (dividend 2022 and retained
earnings balance 2019 and 2020) amounts to twenty cents (€0,20) and after the withholding tax of 5% to a net amount of nineteen
cents (€0,19). The General Meeting also authorized the Board of Directors to procced to any further actions for the implementation of
this resolution.
Item 3
Information from the Chairman of the Audit Committee to the shareholders about the activities of the Audit Committee during the
fiscal year 2022
The Ordinary General Meeting was informed about the performance of the Audit Committee during the 2022 fiscal year.
Item 4
Information from the independent Vice-Chairman of the Board of Directors on the activities of the independent non-executive
members of the Board of Directors in the 2022 fiscal year in accordance with article 9 § 5 of law 4706/2020
The Ordinary General Meeting was informed about the activities of the independent non-executive members of the Board of Directors
during the 2022 fiscal year.
Item 5
Approval of the overall management of the Board of Directors of the Company during the fiscal year 2022 and release of the
members of the Board of Directors and the Certified Auditors from any liability for compensation for the activities during the fiscal
year 2022
The Ordinary General Meeting approved the overall management of the Company for the fiscal year 2022 in accordance with article
108 of law 4548/2018 and released the certified auditors of the Company from any liability for compensation for said fiscal year in
accordance with article 117 of law 4548/2018.
Item 6
Approval of remuneration and compensation of the members of the Board of Directors for the fiscal year 2022 and advance payment
of remuneration and compensation for the fiscal year 2023
The Ordinary General Meeting approved, based on the pre-approval of the previous Ordinary General Meeting, their remuneration for
their participation in the meetings of the Board of Directors and in the Committees of the Company and more specifically: for Mr.
Apostolos Tamvakakis the sum 37.450€, for Mr.
Pantelis Tzortzakis the sum 31.125€, for Mr. Emil Yiannopoulos the sum 63.000€, for
Mr.
Nikolaos Karamouzis the sum 68.075€, for Mrs. Maria Damanaki the sum 58.225€, for Mrs. Ioanna Dretta the sum of 25.875€, for
Mrs.
Eftychia Koutsoureli the sum of 43.700€, for Mr. Panagiotis Kyriakopoulos the sum of 67.225€, for Ms Philippa Michali the sum
of 54.750€ and for Mr. Ioannis Paniaras the sum of 34.975€, i.e. a total sum of 484.400€.
The Ordinary General Meeting following a
legal vote with 91.296.159 valid votes corresponding to 85,84% of the paid-up share capital with voting rights, approved the advance
payment of fees and remuneration to the members of the Board of Directors for their participation in the Board of Directors and in
Financial statements for the year ended 31 December 2023
(Amounts presented in thousand Euro unless otherwise stated)
7
Committees of the Board of Directors for the current fiscal year 2023 up to the total gross amount of 750,000 euros until the next
Ordinary General Meeting, according to article 109 of Law 4548/2018 as such is in force and, of course, in the context of the approved
remuneration policy. Last, the Ordinary General Meeting following a legal vote with 91.296.159 valid votes corresponding to 85,84%
of the paid-up share capital with voting rights, authorized the Board of Directors to determine the gross fees and remuneration for
each member of the Board of Directors for his/her participation in the Board of Directors and in the Committees of the Board of
Directors.
Item 7
Submission for discussion and voting by the General Meeting of the Remuneration Report of the members of the Board of Directors
of the Company according to article 112 § 3 of Law 4548/2018
The Ordinary General Meeting approved the Remuneration Report of the members of the Board of Directors of the Company for the
2022 fiscal year according to article 112 § 3 of Law 4548/2018.
Item 8
Election of an auditing company of Certified Auditors - Accountants for the audit of the financial statements and the audit for the
issuance of the tax certificate for the fiscal year 1/1/2023 - 31/12/2023 and determination of its remuneration
The Ordinary General Meeting elected the company of Certified Auditors, under the name KPMG Certified Auditors SA (Institute of CPA
SOEL) No.
114
-
TIN 094415531)
that
has
its
seat
in
Agia Paraskevi,
at
3
Stratigou
Tombra
St.,
Postal
Code
15342
in
order
to
carry
out
the regular
audit
of
the individual and consolidated financial statements for the year 1/1/2023-31/12/2023 and the tax
compliance audit of the year 2023, with an annual remuneration, which includes the regular audit of the annual financial statements
of the Company (both individual and consolidated) for the year ending on 31/12/23 and the tax audit of the same year, up to the
maximum amount of € 32,500 plus the corresponding VAT. Furthermore, the General Meeting decides the appointment of: a. Mr.
Charalambos Syrounis, son of Georgios, Certified Public Accountant, with Institute of CPA (SOEL) No. 19071, and TIN number 053736402
holder of ID number AK239543, as regular
Certified
Auditor
and
b.
of Mr.
Ioannis Kottinis, son of Georgios, Certified Auditor with
Institute of CPA (SOEL) No.
38411, and TIN
133427920 holder of ID
number
AK630134,
as
Deputy Certified Auditor.
Item 9
Establishment of a plan for the free distribution of the Company's shares and approval of the free distribution of the Company's
shares to members of the Board of Directors of the Company and its affiliated companies within the meaning of article 32 of Law
4308/2014, pursuant to the provisions of article 114 of Law 4548/2018 - Authorisations
The Ordinary General Meeting decided to establish a free distribution plan of up to two hundred thirty-three thousand eight hundred
sixteen (233.816) of the Company's treasury shares (common registered shares with voting rights) for the fiscal year 2022 and the free
distribution in 2025 of Company treasury shares, without any obligation to retain the shares for a certain period, to executive members
of the Company's Board of Directors (excluding the Chairman of the Board of Directors) and to the CEOs of affiliated companies within
the meaning
of
Article
32
of
Law
no.
4308/2014, in accordance with the provisions of article 114 of Law 4548/2018, following an
assessment by the Board of Directors at the end of the three-year period (2022-2024) of the achievement of additional goals, as set
out in the Variable Remuneration System for Senior Executives, and calculation of the exact number of Vested Shares to which the
Senior Executives are entitled.
Furthermore, the Ordinary General Meeting authorized the Board of Directors to take any action required to implement the resolution,
such as to evaluate at the end of the three-year period (2022-2024) the achievement
of
the
additional
goals,
in
accordance
with
the
provisions
of
the
Senior Executives'
Variable Remuneration System, to determine the beneficiaries and the specific conditions
for distribution (including, but not limited to, to evaluate and ascertain the fulfilment of the conditions for the distribution of the shares
to the beneficiaries, to finalize the final number of shares to be distributed per beneficiary, to prepare and approve the documents
required for the distribution and to authorize their signature and submission in order for
the
distribution
to
be
implemented,
etc.),
always
in
accordance
with
the
Senior
Executive
Variable Remuneration
System,
the
Remuneration
Policy,
the
Procedure
for
the
Distribution
of
Shares
to
Senior Executives
and
the
relevant
recommendations
of
the
Company's
Remuneration
Committee.
The Board of Directors may delegate part of the powers delegated to it according to the above to one or more persons who are
members of the Board of Directors.
Item 10
Granting permission to the members of the Board of Directors and the Executives for carrying out the operations provided for in §
1 of article 98 of law 4548/2018, as such is in force
The Ordinary General Meeting decided to grant permission to the Members of the Board of Directors and the Company Executives
to
carry out
the operations provided
for in §
1 of article
98 of law 4548/2018, as such is in force, until the next General Meeting.
Item 11
Miscellaneous - Announcements
Financial statements for the year ended 31 December 2023
(Amounts presented in thousand Euro unless otherwise stated)
8
Distribution of dividends from prior years’ retained earnings
The Annual Ordinary General Meeting of June 15, 2023, decided for the distribution of dividend and of part of previous years’ retained
earnings amounting to a total amount of twenty cents (€ 0,20) per share (excluding the treasury shares held by the Company without
eligibility to receive dividends). The distribution amount is subject to a 5% tax withholding pursuant to articles 40 and 64 of the Law
4172/2013 (Government Gazette A’ 167/23.07.2013), as amended by the Law 4646/2019, article 24 (Government Gazette A’
201/12.12.2019). As a result, the net payable amount was nineteen cents (€ 0,19) per share.
Purchase of own shares
The Company, according to article 49 of the Law 4548/2018 and in compliance with the terms of the Regulation no.2273/2003 of the
Commission of the European Communities, as well as by virtue of the Decision of the Regular General Assembly of its Shareholders and the
Decision of the Board of Directors, proceeded during the period with the purchase of 401.486 own shares at an average price of 5,43 euro
and with a total transaction value of € 2.181 thousand.
Following this, the Company held on 31 December 2023 1.083.751 own shares, or 1,0107% of the total outstanding shares.
2.
Significant events after the date of preparation of the financial statements
Acquisition of Photovoltaic power station
The indirect subsidiary company "KINIGOS
S.A." (Renewable Energy Production segment) on January 5th , 2024 completed the
acquisition of the assets of photovoltaic power plant
with a capacity of 4,48MW which operate
within the Industrial Area of Petraia,
Municipality of Anthemion, Prefecture of Pellas , for the total consideration of €7,7 million.
With the above acquisition, the installed capacity of the (RES) Electricity Generation Stations of the energy arm of Quest Group, amounts
to 39,3MW.
Comment on publications about the entry of a new investor into the company "ACS"
Over the last many years, ACS holds an important position in the Greek courier market and implements an ambitious investment plan
with continuous growth. The Company has recently (as in the past) received interest and proposals regarding «ACS» from
international potential investors. The Company carefully examines and evaluates any serious investment proposal, taking into
account the interests of its shareholders, as well as the employees of the Quest Group companies. In this regard, the Company
clarifies that it has not entered into any binding agreement for the participation of a new investor in the share capital of ACS.
Purchase of own shares
The Company proceeded during the period from the reporting date and till the date the financial statements were authorized for issue by
the Board of Directors, with the purchase of
87.000
own shares at an average price of
5,38
euro and with a total transaction value of euro
468 thousand. Following this, the Company holds 1.170.751 own shares or 1,0919% of the total outstanding shares.
No other significant events have arisen after the reporting date.
Financial statements for the year ended 31 December 2023
(Amounts presented in thousand Euro unless otherwise stated)
9
3.
Performance Rewiew
Company financial infomation
The results of the fiscal year are as follows:
The Company's
revenues
, mainly from administrative services, dividends and rents, amounted to € 12,6 million compared to € 15,8 million
in the previous year, out of which a sum equal to € 10,8 million (2022: € 14 million) relates to dividend income.
Earnings before Taxes, Interest, Depreciation and Investment activities
amounted to € 9,8 million compared to € 13,5 million in the previous
year.
Profits before taxes
amounted to € 10,7 million compared to € 13,4 million in 2022.
In 2023, the Company proceeded with the sale of its 16.88% stake in the company Cosmos business systems, resulting in capital gains of €0.8
million (Note 16 – Financial assets measured at fair value through profit or loss).
The
results after taxes
amounted to profits of € 10,7 million, against profits of € 13,4 million.
Investments in subsidiaries
amounted to €127.9 million, increased by €14 million compared to the previous year (Note 11 – Investments in
subsidiaries) mainly due to the acquisition of "EPAFOS S.A." and the share capital increase of 100% subsidiary Quest Energy S.A..
There is no
Bank Borrowings
in the Company at the end of the closing and previous financial year.
Total
equity
of the Company amounting to € 144,7 million decreased compared to 2022 by € (10,6) million due to the results of the current
fiscal year but also due to the cash distributions that took place within 2023, such as the distribution of retained earnings of previous years
profits amounting to € 21,3 million.
Group financial information
Regarding the total (continuing and discontinued) activities of the Group, the results of the current fiscal year are as follows:
The
consolidated revenue
of the Group amounted to € 1.197 million against € 1.032 million in the previous year, increased by 16%. The
increase in sales derives mainly from the commercial companies of the Group.
Consolidated earnings before interest, taxes, depreciation and amortization (EBITDA)
amounted to € 83,3 million compared to € 72 million
in the previous year.
Consolidated earnings before taxes
amounted to € 58,9 million compared to € 54,9 million in the year 2022.
Profit after taxes and before non-controlling interests
(minority interests) amounted to € 45,4 million compared to € 42 million in 2022.
Consolidated earnings after taxes and after non-controlling interests
(minority interests) amounted to € 44,8 million compared to € 41,4
million in 2022.
The Group's
Net Cash
(Cash less loans) amount to € -17 million, compared to € 28,7 million in the previous year.
Financial statements for the year ended 31 December 2023
(Amounts presented in thousand Euro unless otherwise stated)
10
Alternative Performance Measures (APMs)
The Group uses Alternative Performance Measures (APMs) to better evaluate its financial performance and in the process of decision making
around the financial, operational, and strategic planning. The figure of "Earnings before taxes, financial, investment results and total
depreciation (EBITDA)" presented in the financial statements is analyzed below. The above figure should be examined in conjunction with
the financial results prepared in accordance with IFRS and in no way replaces them. The above APM is mainly used to measure the operational
performance of the Company and the Group.
Financial results of 2023 for the Group's main subsidiaries:
Earnings / (losses) before tax
58.910
54.892
Plus:
Depreciation and Amortization - (Notes 7, 9, 41)
13.618
11.753
Finance (income) / costs (Note 29)
11.941
6.491
Other (gains) / losses (Note 32)
(1.140)
(967)
Earnings / (losses) before interest, tax,
depreciation / amortization and investing
results
(EBITDA)
83.329
71.997
1/01/2023-
31/12/2023
1/01/2022-
31/12/2022
Earnings / (losses) before tax
10.728
13.424
Plus:
Depreciation and Amortization - (Notes 7, 9, 41)
201
149
Finance (income) / costs (Note 29)
(264)
81
Other (gains) / losses (Note 32)
(830)
(152)
Earnings / (losses) before interest, tax,
depreciation / amortization and investing
results
(EBITDA)
9.835
13.502
1/01/2023-
31/12/2023
1/01/2022-
31/12/2022
GROUP
COMPANY
Financial statements for the year ended 31 December 2023
(Amounts presented in thousand Euro unless otherwise stated)
11
The Company's sales are classified in the income statement in the item "Other operating income".
The category "Other" refers to the other subsidiaries of the Group, intra-group elimination and consolidation adjustments.
The main figures of the financial results of 2023 per Group segment and their change from the previous year are presented in the following
table:
The Company is presented under category “Unallocated”.
Quest
Holdings S.A.
Info-Quest
Technologies
S.M.S.A.
Clima Quest
S.M.S.A.
Foqus
S.M.S.A.
Unisystems
(Group)
QuestOnLine
S.A.
G.E.Demetriou
S.A.
iSquare
S.M.S.A.
iStorm
S.A.&iStorm
Cyprus LTD
ACS S.M.S.A.
Quest Energy
(Group)
Other /
Consolidation
adjustments
Quest Group
2023
12.560
304.368
11.374
12.362
215.225
33.050
53.660
401.540
93.719
150.573
10.297
-102.124
1.196.604
2022
15.818
357.698
8.371
8.760
175.895
32.588
4.995
342.434
74.070
142.621
10.523
-141.907
1.031.867
Δ%
-20,6%
-14,9%
35,9%
41,1%
22,4%
1,4%
-
17,3%
26,5%
5,6%
-2,1%
-28,0%
16,0%
2023
9.835
10.242
836
518
19.066
512
4.490
7.981
5.776
24.151
8.207
-8.282
83.331
2022
13.501
9.606
437
383
16.047
369
-119
10.343
4.682
22.557
7.957
-13.766
71.997
Δ%
-27,2%
6,6%
91,3%
35,3%
18,8%
38,7%
-
-22,8%
23,4%
7,1%
3,1%
-39,8%
15,7%
2023
10.728
4.048
436
373
16.209
160
2.620
7.496
4.074
19.630
4.551
-11.416
58.910
2022
13.424
5.150
213
255
12.739
88
-307
10.205
2.280
18.662
4.628
-12.447
54.892
Δ%
-20,1%
-21,4%
104,2%
46,1%
27,2%
82,3%
-
-26,5%
78,7%
5,2%
-1,7%
-8,3%
7,3%
2023
10.687
2.998
316
287
12.218
115
2.670
5.719
3.614
14.900
3.430
-11.582
45.372
2022
13.384
3.843
151
198
9.628
76
-269
7.847
1.886
14.530
3.472
-12.745
42.000
Δ%
-20,2%
-22,0%
109,1%
44,9%
26,9%
51,7%
-
-27,1%
91,6%
2,5%
-1,2%
-9,1%
8,0%
Sales
EBITDA
Profit/ (Loss)
before tax
Profit/ (Loss)
after tax
12M 2023
(€ x 1.000)
Commercial
Activities
IT Services
Courier Services
Renewable Energy
Unallocated
Total
Gross sales
948.610
216.332
150.777
10.297
-
1.326.016
Inter-company sales
(125.790)
(2.147)
(1.071)
(404)
-
(129.412)
Net Sales
822.819
214.185
149.707
9.893
-
1.196.604
EBITDA*
32.957
18.946
24.195
8.207
(975)
83.329
% Sales
4,0%
8,8%
16,2%
83,0%
-
7,0%
Earnings Before Tax (EBT)
18.389
16.068
19.671
4.551
230
58.910
% Sales
2,2%
7,5%
13,1%
46%
-
4,9%
Earnings After Tax (EAT)
14.810
12.081
14.929
3.430
122
45.372
Earnings After Tax & NCI (EAT & NCI)
44.797
12M 2022
(€ x 1.000)
Commercial
Activities
IT Services
Courier Services
Renewable Energy
Unallocated
Total
Gross sales
829.944
176.959
142.825
10.523
436
1.160.688
Inter-company sales
(125.893)
(1.092)
(1.063)
(415)
(358)
(128.821)
Net Sales
704.051
175.867
141.762
10.109
78
1.031.867
EBITDA*
25.738
16.123
22.589
7.957
(411)
71.997
% Sales
3,7%
9,2%
15,9%
78,7%
-528%
7,0%
Earnings Before Tax (EBT)
17.869
12.796
18.864
4.628
734
54.892
% Sales
2,5%
7,3%
13,3%
45,8%
944%
5,3%
Earnings After Tax (EAT)
13.715
9.661
14.725
3.472
427
42.000
Earnings After Tax & NCI (EAT & NCI)
41.394
% 2023 /2022
Commercial
Activities
IT Services
Courier Services
Renewable Energy
Unallocated
Total
Sales
16,9%
21,8%
5,6%
-2,1%
-100,0%
16,0%
EBITDA*
28,0%
17,5%
7,1%
3,1%
-137,3%
15,7%
Earnings Before Tax (EBT)
2,9%
25,6%
4,3%
-1,7%
-68,7%
7,3%
Earnings After Tax (EAT)
8,0%
25,1%
1,4%
-1,2%
-71,5%
8,0%
Earnings After Tax & NCI (EAT & NCI)
8,2%
delta in '000€
2023 /2022
Commercial
Activities
IT Services
Courier Services
Renewable Energy
Unallocated
Total
Sales
118.769
38.318
7.944
(216)
(78)
164.737
EBITDA*
7.219
2.822
1.606
249
(564)
11.333
Earnings Before Tax (EBT)
520
3.272
808
(77)
(504)
4.018
Earnings After Tax (EAT)
1.094
2.420
204
(41)
(305)
3.372
Earnings After Tax & NCI (EAT & NCI)
3.403
* EBITDA : Earnigs before tax, financial and investing results and depreciation / amortization
Financial statements for the year ended 31 December 2023
(Amounts presented in thousand Euro unless otherwise stated)
12
The key ratios that reflect the financial structure, performance and management policy of the Group are as follows:
4.
Risk factors
The Group and the Company are exposed to financial risks, such as market risks (changes in exchange rates, interest rates, market prices),
credit risk and liquidity risk. The overall risk management strategy of the Group and the Company mainly focuses on the unpredictability of
financial markets and seeks to minimize their potential negative impact on the financial performance of the Group and the Company.
Risk management is carried out centrally by the Finance Department of the Group and the Company, which operates according to specific
rules approved by the Board of Directors. The Board of Directors provides instructions and guidelines for general risk management, as well
as specific instructions for the management of specific risks, such as foreign currency risk, interest rate risk and credit risk.
31/12/2023
31/12/2022
Current assets
482.912
66,23%
463.739
67,03%
Total assets
729.092
691.861
Equity
262.330
56,20%
238.724
52,68%
Total liabilities
466.762
453.137
Equity
262.330
217,08%
238.724
212,22%
Property, plant and equipment
120.847
112.491
Current assets
482.912
142,36%
463.739
141,21%
Current liabilities
339.227
328.405
31/12/2023
31/12/2022
Profit/ (Loss) after tax for the year
45.372
3,79%
42.000
4,07%
Revenue
1.196.604
1.031.867
Profit before tax
58.910
22,46%
54.892
22,99%
Equity
262.330
238.724
Gross profit
171.817
14,36%
153.451
14,87%
Revenue
1.196.604
1.031.867
Revenue
1.196.604
456,14%
1.031.867
432,24%
Equity
262.330
238.724
31/12/2023
31/12/2022
Trade receivables
184.124
125.168
Revenue
1.196.604
1.031.867
Trade receivables
184.124
39,45%
125.168
27,62%
Total liabilities
466.762
453.137
Financial Structure
Performance
Days
Credit indicators
Χ 360
55
Days
Χ 360
44
Financial statements for the year ended 31 December 2023
(Amounts presented in thousand Euro unless otherwise stated)
13
(a)
Foreign exchange risk
The Group operates in Europe and, therefore, most of the Group's transactions are conducted in Euro. However, part of the Group's purchases
of goods is made in US Dollar. The prompt repayment of these suppliers significantly reduces the foreign exchange risk. The Group, on an ad-
hoc basis, pre-purchases foreign currency and does not conclude currency future contracts with external parties.
(b)
Credit risk
The Group has established and implements credit control procedures in order to minimize doubtful debts. The credit risk to the Group as a
whole is relatively small, because sales are dispersed to a large number of customers. Wholesale sales are made mainly to customers with a
positively evaluated credit history. The Credit Control Department of each company of the Group sets credit limits per customer and applies
specific terms for sales and collections. Where possible, collateral is required.
The break-down of short-term bank deposits based on the credit ratings of financial institutions is as follows:
(c)
Liquidity risk
For the purposes of monitoring and management of liquidity risk, the companies of the Group prepare forecasts for future cash flows on a
regular basis. Liquidity risk is kept at low levels by maintaining adequate cash and cash equivalents and credit lines, in order to ensure
satisfaction of financial obligations expiring during the next 12 months.
(d)
Interest rate risk
The Group does not have significant interest-bearing assets, so operating income and cash flows are substantially independent from changes
in interest rates. The Group's borrowings are linked to floating interest rates, which, depending on market conditions, can either remain
floating or be converted into fixed interest rates.
The risk of interest rate fluctuations comes mainly from long-term loans. Floating rate loans expose the Group to cash flow risk. Fixed rate
loans expose the Group to a risk of a change in fair value.
The following table illustrates the effect of the change in the borrowing rates on the Group:
31/12/2023
31/12/2022
31/12/2023
31/12/2022
A
-
126
-
-
A+
10.434
5.295
-
-
A-
-
69
-
38
ΑΑ-
-
1.584
-
-
A1
6.118
-
-
-
Aa2
8.538
-
38
-
Aa3
6
208
-
-
A3
202
18
-
-
B
28.332
582
1.440
-
B+
36.186
63.150
8.681
1.141
B-
-
41.306
-
23.483
B1
-
20.599
-
1.331
B2
28
16.253
-
410
BB
30.784
-
256
-
BB-
-
77
-
-
BBB
-
310
-
-
BBB+
-
17.685
-
-
Baa1
-
534
-
-
Baa2
125
-
-
-
Caa1
-
117
-
-
120.753
167.913
10.415
26.403
GROUP
COMPANY
Financial statements for the year ended 31 December 2023
(Amounts presented in thousand Euro unless otherwise stated)
14
(e) Capital risk
The aim of the Group in the management of capital is to ensure its ability to continue its activity and maintain the ideal capital structure, in
order to reduce the cost of capital. In order to maintain or adjust the capital structure, the Group may increase or decrease borrowing, issue
or repurchase shares, adjust dividends to shareholders or return capital to shareholders.
The net borrowings of the Group and the Company as of 31 December 2023 and 2022 were as follows:
(f)
Risk of economic environment - Macroeconomic business environment in Greece
The financial risks that have arisen globally, following the increase in interest rates, the turmoil in the global energy market and the
subsequent increase in the prices of raw materials, together with the significant geopolitical instability, have negatively impacted the
macroeconomic conditions worldwide, Greece included.
Management constantly assesses the potential impact of any changes in the macroeconomic and financial environment in Greece to ensure
that all necessary actions and measures will be taken to minimize any impact on the Group's activities. The current conditions of the
increasing inflation rate and the steep increase in the prices of energy have affected the financial and operational performance of the Group,
Year
Increase /
Decrease in basis
points
Effect on profit
before tax
2023
-0,25%
317
-0,50%
633
-0,75%
950
-1,00%
1.267
0,25%
(317)
0,50%
(633)
0,75%
(950)
1,00%
(1.267)
2022
-0,25%
259
-0,50%
518
-0,75%
777
-1,00%
1.036
0,25%
(259)
0,50%
(518)
0,75%
(777)
1,00%
(1.036)
31/12/2023
31/12/2022
31/12/2023
31/12/2022
Total borrowings (Note 23)
138.130
139.501
-
-
Lease liabilities (Note 42)
33.020
29.207
398
1.646
Less : Cash and cash equivalents (Note 20)
(121.115)
(168.196)
(10.415)
(26.403)
Net Debt
50.035
512
(10.017)
(24.757)
Total equity
262.330
238.724
144.740
155.312
Total capital employed
312.365
239.236
134.723
130.555
Leverage ratio
16,02%
0,21%
-7,44%
-18,96%
GROUP
COMPANY
Financial statements for the year ended 31 December 2023
(Amounts presented in thousand Euro unless otherwise stated)
15
however, and based on the latest evaluation, management has reached the conclusion that no additional impairment provisions are required
for its financial and non-financial assets as of 31
st
December 2023.
More specifically, the Group is constantly considering:
• The ability to repay or refinance the existing borrowings, as there is sufficient cash, and the Group is not exposed to significant short-
term borrowing.
• The collectability of trade receivables in the context of the strict credit policy implemented and for credit insurance purposes.
• The maintenance of the level of sales due to the dispersion of its activities.
• The recoverability of the value of tangible and intangible assets.
Non-financial risks
In addition to the financial risks, the Group also focuses on non-financial risks related to specific issues, some of which have been identified
as critical in the context of sustainable development. These issues concern the full compliance with the legislation and the implementation
of corporate governance policies, human resources, the environmental impact of the companies' activity, the supply chain, and the evolution
of the companies in the market in which they operate.
The effects on these areas are further analysed in the Non-Financial Risks section of this report.
(g) Risks to the security of personal data
Companies face risks regarding the security of their systems and infrastructure, which could affect the integrity and security of any form of
information they manage, such as personal data of customers, associates or employees, and confidential corporate information.
The Company collects, stores and uses data in the normal course of its operations and protects them in accordance with the data protection
legislation.
On 27 April 2016, the European Parliament and the European Council adopted the Data Protection Regulation (EU) (2016/679) ("Data
Protection Regulation"). The Data Protection Regulation contains extensive obligations for companies in relation to procedures and
mechanisms for processing personal data and rights of data subjects and in cases of violation allows the supervisory authorities to impose
fines of up to 4% of the annual global turnover of the Group (or Euro 20 million whichever is greater). The Data Protection Regulation entered
into force on 25 May 2018 after a transitional period of two years.
In order to reduce the relevant risks, the Group in 2018 has established the Data Protection Division that develops all necessary policies and
procedures, oversees their implementation, designs new systems and security infrastructure and evaluates their effectiveness and
compliance with the regulatory framework for the protection of personal data.
(h) Determination of fair values
The fair value of financial assets traded in active markets (stock exchanges), such as derivatives, shares, bonds, mutual funds, is determined
based on the published prices valid at the date of preparation of the financial statements.
The fair value of financial assets that are not traded in active markets is determined using valuation techniques and assumptions based on
market data at the date of the financial statements.
The nominal value of trade receivables, less the relevant provision, is estimated to be close to their fair value. The fair values of financial
liabilities for the purpose of their presentation in the financial statements are calculated based on the present value of future cash flows
arising from specific contracts using the current interest rate available to the Group for the use of such financial instruments.
(i) Impact of climate-related matters
Realizing the responsibility of its companies around environmental issues, the Group has adapted its business practices to the needs of
environmental protection and the saving of natural resources. This has led to the adoption of an ESG strategy for the environment which, in
Financial statements for the year ended 31 December 2023
(Amounts presented in thousand Euro unless otherwise stated)
16
the long run, is expected to provide cost savings for the Group's companies (reduction of energy consumption, focus on the circular economy
model, replacement of the leased vehicles fleet with environmentally friendly ones upon expiration of existing lease contracts etc.). Based
on the nature of the group activities, no significant exposure to environmental risks has been assessed. It should also be noted that the
increasing awareness on the protection of the environment has boosted the demand for the products of some of the Group's IT companies,
in the context of their customers' efforts to reduce their own environmental footprint (enhancement of the digitalization process, automation
solutions, cloud distribution etc.), a trend which is expected to strengthen further in the future. Regarding the financial and the non-financial
assets of the Group, Management has assessed that no material exposure to climate-related risks exists and has therefore concluded, that
no adjustments to the carrying amounts of the assets or to the judgments/assumptions made in the context of IFRS is required as of 31
December 2023, as a direct consequence of climate-related risks.
5.
Related party transactions
Related parties, in accordance with the requirements of IAS 24, are the subsidiary companies, companies with common shareholders with
the Company, associates, joint ventures, as well as the members of the Board of Directors and the Company's Executives and the persons
closely related to them.
Intra-group transactions relate to sale of goods and rendering of services. The transactions of the Company with the rest of the Group concern
mainly provision of internal support services and leasing of property. Services from, and to related parties, as well as sales and purchases of
goods, are conducted at arm’s length. The Company receives goods and services from the rest of the Group relating mainly to courier services
and repair of IT equipment.
The transactions with related parties during the year were as follows:
Financial statements for the year ended 31 December 2023
(Amounts presented in thousand Euro unless otherwise stated)
17
The amount of sales of goods and services to related parties of €9,488 thousand on December 31, 2023 mainly concerns sales of €8,680
thousand. to "COSMOS BUSINESS SYSTEMS SA" and €747 thousand to "ACS Cyprus Ltd". Accordingly, the amount of sales of goods and
services of €6,990 thousand on December 31, 2022 mainly concerns sales of €6,230 thousand to "COSMOS BUSINESS SYSTEMS S.A." and €604
thousand to "ACS Cyprus Ltd".
1/01/2023-
31/12/2023
1/01/2022-
31/12/2022
1/01/2023-
31/12/2023
1/01/2022-
31/12/2022
i) Sales of goods and services
Sales of goods to:
5.803
4.249
-
-
- Other related parties
5.803
4.249
-
-
Sales of services to:
3.685
2.741
1.474
1.532
-Unisystems Group
-
-
598
616
-Info Quest Technologies
-
-
193
210
-ACS
-
-
301
311
-iStorm
-
-
15
15
-iSquare
-
-
179
188
- Other direct subsidiaries
-
-
186
190
- Other related parties
3.685
2.741
2
2
Dividends
-
-
10.804
14.020
-Unisystems
-
-
5.009
3.015
-Info Quest Technologies
-
-
1.802
2.500
-ACS
-
-
-
5.003
-iStorm
-
-
993
1.000
-iSquare
-
-
3.000
2.502
9.488
6.990
12.278
15.554
ii) Purchases of goods and services
Purchases of goods from:
1.598
-
-
-
- Other related parties
1.598
-
-
-
Purchases of services from:
4.060
3.434
223
208
-Unisystems
-
-
62
22
- Info Quest Technologies
-
-
48
85
-ACS
-
-
7
2
- Other direct subsidiaries
-
-
1
-
- Other indirect subsidiaries
-
-
-
1
- Other related parties
4.060
3.434
105
97
5.658
3.434
223
208
iii) Benefits to management
Salaries and other short-term employment benefits
10.783
9.737
572
585
10.783
9.737
572
585
COMPANY
GROUP
Financial statements for the year ended 31 December 2023
(Amounts presented in thousand Euro unless otherwise stated)
18
The amount of euro 10.783 thousand and euro 9.737 thousand for benefits to management in current and prior year respectively basically
concerns salaries as per requirements of IAS 24 “Related parties”.
The amount of receivables from other related parties amounting to €729 thousand as of December 31, 2023 refers to receivables amounting
to €107 thousand. from "ACS Cyprus LTD" and €620 thousand. from "BriQ Properties SA". Accordingly, the amount of receivables from other
related parties amounting to €4,028 thousand on December 31, 2023 refers to receivables amounting to €2,907 thousand from "COSMOS
BUSINESS SYSTEMS SA", €534 thousand from "BriQ Properties SA” and €587 thousand from "ACS Cyprus Ltd".
As mentioned above, transactions with other related parties also include transactions with the company "BriQ Properties REIC", which was a
subsidiary of the Company up to July 31st, 2017, and today is an associated member, although not directly nor indirectly owned by the
Company, due to common key shareholders and significant business relationships, which mainly concern property leases.
The lease liabilities of the Group and the Company to BriQ are analysed as follows:
iv) Period end balances from sales-purchases of goods / services / dividends
31/12/2023
31/12/2022
31/12/2023
31/12/2022
Receivables from related parties:
-Unisystems
-
-
133
135
-Info Quest Technologies
-
-
15
4.500
-ACS
-
-
22
22
-iStorm
-
-
1
2
-iSquare
-
-
18
19
- Other direct subsidiaries
-
-
17
4.469
- Other related parties
729
4.028
18
16
729
4.028
224
9.162
Payables to related parties:
-Info Quest Technologies
-
-
3
40
-ACS
-
-
15
14
- Other direct subsidiaries
-
-
2
3
- Other related parties
2.580
126
2.473
4
2.580
126
2.493
61
v)
Receivables from management and BOD members
-
-
-
-
vi)
Payables to management and BOD members
-
-
-
-
COMPANY
GROUP
31/12/2023
31/12/2022
31/12/2023
31/12/2022
BriQ Properties REIC
Lease liabilities, opening balance
13.126
7.927
354
402
Lease payments
(3.024)
(2.663)
(105)
(82)
Contract modifications
3.204
7.396
29
19
Interest expense
591
467
13
15
Lease liabilities, ending balance
13.896
13.126
290
354
GROUP
COMPAΝY
Financial statements for the year ended 31 December 2023
(Amounts presented in thousand Euro unless otherwise stated)
19
6.
Address of the Company
The Company's headquarters are located in Kallithea, Attica, and its offices operate in an office building on 2
A
, Argiroupoleos street.
7.
Outlook 2024
2023 Overview - 2024 Prospects
Quest Group in 2023 continued the positive trend of the previous years, showing improvement in all key financial figures from continuing
operations.
In particular:
In 2023, on a consolidated basis, revenues amounted to €1,2 billion, an increase of 16% compared to 2022. Earnings before interest, taxes,
depreciation, amortization and investment income amounted to € 83,3 million (increased by 16% from 2022). Earnings before tax amounted
to € 59 million (vs. € 54,9 million in 2022), while earnings after tax and minority interests (EAT after NCI) amounted to € 45,4 million (vs. € 42
million in 2022).
In addition, during 2023, Quest Group made significant investments which, together with the net borrowings for these investments, amounted
to approximately €28 million. The majority of the investments related to growth capex and new investments. The majority of these investments
concerned mainly the infrastructure of ACS, the new solar parks of Quest Energy, as well as the acquisition of the company «EPAFOS».
Good management in working capital requirements, mainly in Q4, and good organic profitability led - despite the significant sales growth - to
a good cash position for the Group and net cash position at the end of 2023 stood at €17 million compared to €-28,7 million at the end of 2022,
while €21 million was also distributed as dividends. Finally, net cash flow from operating activities amounted to approximately €6,5 million.
In particular, the 2023 performance and the outlook for 2024 by activity are broken down hereinbelow:
•
Commercial activity
(Info Quest Technologies, Quest on Line (you.gr), iSquare, iStorm, QClima, FoQus, GED and Epafos)
In 2023, total revenues amounted to €822,8 million (16,9% increase vs. €704 million in 2022), EBITDA was €33 million (28% increase vs. €25,7
million in 2022), while earnings before tax (EBT) amounted to €18,4 million (2,9% decrease vs. €17,9 million in 2022).
The decrease in EBT
margins is mainly due to the increase in borrowing costs due to the large increase in base interest rates.
For 2024, modest revenue growth is estimated, mainly coming from market share growth, growth and development of new activities. In
terms of profitability, it is estimated to be similar to 2023 due to the decline in gross margin in Apple's commercial products and the
expectation of maintaining high base rates throughout the year.
•
IT Services
(Unisystems group)
Revenue in 2023 amounted to €214,2 million (21,8% increase compared to 2022), EBITDA was €18,9 million (17,5% increase from 2022) and
earnings before tax (EBT) amounted to €16 million (25,1% increase from 2022).
For 2024, increased profitability and revenues are expected relating to growth both in Greece and abroad. More specifically, the growth will
derive from big projects of the Greek State (RRF, ESPA), from major contracts in the banking sector. The activities abroad present an increasing
trend as a result of the new big projects undertaken or of the extension in existing ones.
•
Postal Services
(ACS Courier)
In 2023, revenues amounted to € 149,7 million (5,6% increase compared to 2022), EBITDA amounted to € 24,2 million (7% increase compared
to 2022), and EBT amounted to € 19,7 million (4,3% increase compared to 2022).
For 2024, revenue and profitability growth is estimated to be higher than in 2023 mainly coming from courier services (due to the growth of
e-commerce).
Financial statements for the year ended 31 December 2023
(Amounts presented in thousand Euro unless otherwise stated)
20
•
Production of Electricity from Renewable Sources (Quest Energy)
Revenues in 2023 amounted to € 9,9 million (-2,1% vs 2022), EBITDA amounted to € 8,2 million (3,1% increase compared 2022) and earnings
before tax (EBT) amounted to € 4,6 million (1,7% decrease compared to 2022).
For 2024, the gradual implementation of new investments is also planned, while mild growth is expected in all sizes of the activity.
In summary, Quest Group in 2023:
o
Achieved sales growth of +16% yoy (€1,196 million) from continuing operations, exceeding €1 billion for second time.
It is also noted that
it now has two companies with sales of more than €400 million in its portfolio of investments.
o
Showed an improvement in profitability from operations, EBITDA (+15,7%) and EBT (+7,3%) coming from most companies.
o
Broadened its portfolio of subsidiaries & activities with the acquisition of the shareholding (100%) in EPAFOS.
o
Distributed to its shareholders dividends/earnings of previous years amounting to approximately €0,19/share (approximately €21 million
in cash).
o
Implemented significant investments mainly related to the development of the new ACS facilities, new investments in energy sector and
the acquisition of EPAFOS amounting to approximately €28 million together with the loans taken out.
o
Expanded its commercial activity in Romania by taking over the Xiaomi products distribution.
o
Significantly increased the group's human resources, which exceeded 2,900 employees.
o
Continued and expanded its actions related to the training and development of its staff and managers alongside their effective goal
setting.
Quest Group continues to implement its business plans having as key priorities the increase of revenues, the reduction/containment of
operating costs, the mitigation of risks with controlled debt exposure and the limitation of credit risk and the generation and gradual
improvement of positive operating cash flows.
Quest Group's key objectives and priorities for 2024, taking into account the current circumstances, are:
•
To continue the organic growth of all areas of activity and the development of all areas of operation.
•
To ensure sufficient cash liquidity and maintain positive operating cash flows.
•
To continue planned investments to support further development of its operations in areas that will have greater potential in the future,
such as e-commerce.
•
To pursue further growth through acquisitions.
With regard to the outlook for 2024, from operations, a positive course is estimated for consolidated sales, EBITDA operating profit and
profitability before tax compared to 2023. The group's investments are estimated to exceed €30 million where the majority will be development
investments.
Taking into account the economic conditions, as well as the outlook for Greece, the main targets of the Group's Management for 2024, by
business sector/subsidiary, are as follows:
Parent Company Quest Holdings
2023 was a year of stability for Quest Holdings.
For 2024, the main objective of the parent company is to maintain a lean and efficient operating model with limited operating costs for the
Group's consolidated figures, to re-evaluate and improve the Group's structure, to maintain as far as possible the organic figures of its
subsidiaries in order for them to achieve their goals, as well as to implement their strategic plans and finally to look for new investment
opportunities in the same or new sectors with growth prospects and/or with higher profit margins.
The overview of 2023 performance and the outlook for 2024 are presented below for the most significant subsidiaries of the Group:
Financial statements for the year ended 31 December 2023
(Amounts presented in thousand Euro unless otherwise stated)
21
Α
. Segment of Commercial Activities
Info Quest Technologies S.M.S.
Α
. – FoQus S.M.S.
Α
. - Team Candi S.M.S.
Α
.
(Distribution of Products and IT Solutions)
In 2023, a decrease in sales of personal computers in the Greek market (-16%) was recorded with a relative recovery in sales of mobile
phones (+10%), subsequently affecting the sales of the company, which is strongly active in these two product categories. The
geopolitical turmoil continued, with the addition of a new front in our wider region (Gaza Strip), with still unclear medium - long term
effects, while the increased inflation, mainly in essential necessities, and the prolonged election period, contributed to a reduction in
consumer spending. In the first months of 2023, supply chain problems were significantly reduced, but with worrying developments
and initial problems in the movement of goods in the last few months in terms of costs and delivery times. At the same time, borrowing
costs increased significantly, while there was a delay in the implementation of major digital transformation projects using Recovery
and Resilience Facility (RRF) resources.
Nevertheless, the forecasts from the international market and partner manufacturers, significant developments in technology with the
launch of products with new advanced capabilities, and the prospect of accelerating the digital transformation of the state,
organizations and enterprises, with faster absorption of available resources, create significant prospects for market recovery in the
coming years, for which the company is preparing intensively.
Expansion abroad & Operational Excellence
Particularly important for the company in the reporting period was the focus on the operational organization of its new subsidiary in
Romania (Info Quest Technologies Romania), having as object the distribution of Xiaomi products in that country, and the expansion
of the activity of its subsidiary in Cyprus (Info Quest Technologies Cyprus), to support the distribution of products of partner brands,
based on the extension of the relevant contracts. In 2023 the company reported the first positive results from its new activity in both
countries.
At the same time, in 2023, the automation and software roll out at the new Logistics Center in Aspropyrgos, Attica was completed,
with very positive results in terms of efficiency and productivity increase.
Sustainable Development & Working Environment
During the reporting period, the company continued its efforts to achieve its Sustainable Development and ESG objectives, in line with
the Group's strategy, with particular emphasis on closer monitoring of climate change related risks that may affect its operations. The
culmination of its efforts was the GOLD certification by the international performance evaluation body for Sustainable Development
EcoVadis
, which places it in the
Top 2% of companies in its sector
(Distribution of Digital Technology and Software Products) and in the
Top 3%
of all companies evaluated internationally by the body. At the same time, it completed the procedures for obtaining ISO27001
for Information Security.
The company continued its investment in the development and retention of its employees. For the first time in its history, in 2023 it
was recognized for the quality of its work environment as
Best Workplace
, receiving the very high 4th place among the 10 large Greek
companies, the 2nd place among Greek technology companies and the 27th place among mid-sized European companies, was included
among the
Most Admired Companies
, in the largest reputation survey conducted in Greece by Fortune magazine and was included in
the "ESG Transparency Index" list in the Diamond category (2nd level) published in Forbes Magazine with the support of EY.
Results
In 2023, Info Quest Technologies, exceeded its turnover targets, while rising interest rates and ongoing international challenges led to
slightly lower Profit before Taxes.
In detail, in 2023 Info Quest Technologies reported:
Financial statements for the year ended 31 December 2023
(Amounts presented in thousand Euro unless otherwise stated)
22
•
Sales of €304.4M down -14.9% (vs 2022), in a market with a declining trend. Note that the 2023 and 2022 results are not
comparable, as in 2022 the company was operating as a sub-distributor of G.E. Dimitriou (GED) and included sales and profits
from this activity, while since 2023 GED operates as a standalone company.
•
EBITDA increased by 6.8% compared to the same period last year.
•
Significant financial charges and increased depreciation of €1.74M vs 2022, due to higher borrowing rates, support for new
activities and new investments.
•
A 20.9% decrease in EBT to €4.1M in 2023 compared to €5.2M in 2022 as a result of the above charges and investments.
•
Increased market share in IT and maintained market share and market position in Mobility & IoT
•
Launched activity in Romania, managing to enter into commercial partnerships with the most important organizations in the
Retail and operators’ sector
The company's performance resulted in receiving significant awards during the year from its partner suppliers, most prominently the
Xiaomi Legend Partner 2023
award, which Xiaomi awarded to just 5 partners worldwide.
In detail by business segment:
-
In the
IT and Communications Products (Volume Business)
, sales were down marginally by -1% vs the previous year, as a result
of lower consumer spending and the absence of device subsidy programs in a more pronouncedly declining market as mentioned
hereinabove. The conditions/co-operations were created for the development of new product lines in areas related to circular
economy, energy management and smart home/smart city, in line with the company's 5-year business plan.
-
In the
Mobility segment
, with Xiaomi's products as a key growth pillar, sales rose to 2022 levels, despite initial estimates of a
single-digit decline.
Xiaomi Smartphone
sales were up
3.5%
and more than 650,000 units were traded in Greece, Cyprus and
Malta. A significant contribution to growth was made by Xiaomi's sub-brand POCO, marketed by our subsidiary FoQus, where
total sales grew 43% YoY. The Xiaomi smart connected ecosystem experienced single-digit sales decline mainly due to the decline
in electric scooters, a market in which it is the dominant manufacturer. However, the expansion of the product range into
categories such as smart watches, kitchen and personal care gadgets, and charging devices brought
sales growth of over 50%
in
each category. The Xiaomi brand in Greece maintained very high market shares in all categories in which it operates, such as 2nd
place in Smartphones, 1st place in electric scooters, robot vacuum cleaners, headphones, etc., which are the highest in Europe.
Xiaomi Stores
sales in Greece and Cyprus grew +75% for a 2nd consecutive year.
-
In 2023, the
new activity in the Romanian market
was launched, through the subsidiary Info Quest Technologies Romania, having
as object the distribution of Xiaomi products, as an official partner of the top manufacturer.
In its first year of operation, it
managed to exceed initial forecasts both in terms of revenue, achieving sales of €32M, as well as in terms of profit before tax.
-
In the
Value Added Distribution & Cloud
segment, sales grew +19.7% (vs LY). In particular, the strategic
Cloud
business showed
significant growth of
+22%
(vs LY) and a high market share in the distribution of Microsoft Cloud Solutions in Greece. The
company's inclusion in the
Top 20 Microsoft Cloud Partners CEMA
(Central Eastern Europe, Middle East, Africa - 104 countries)
was very important and gave the organization access to upgraded services and financial tools, while providing new opportunities
and competitive advantages for further growth. At the same time, the Network Solutions segment, with its prominent partnership
with Cisco, experienced annual growth of over 17% with the expansion of its partner network and participation in national-scale
infrastructure projects. Last, the Business Software vertical solutions (Citrix, Red Hat, IBM, Veritas, Veritas, Broadcom) also
showed a +23% growth, completing the positive growth rate of Info Quest Technologies' value-added solutions.
-
The results of the wholly-owned (100%) subsidiary
Team Candi
, a company specialised in the implementation of Modern
Workplace and Automations solutions in Microsoft environment, were also positive in terms of turnover, which reached €1.1M.
The company received the
Microsoft Specialization for Low Code Application Development
certification, which ranks it among
the 4 Microsoft partners in the Central and Eastern Europe region and among the 80 worldwide, that have received this highest
specialization distinction giving it further prospects and growth opportunities. Particular emphasis was placed on documenting
project delivery methodologies and further specialization of staff alongside investment in research & development of new AI
technologies.
Financial statements for the year ended 31 December 2023
(Amounts presented in thousand Euro unless otherwise stated)
23
2024 Outlook
2024 is expected to be another year of unique market conditions, many challenges and significant uncertainty. In this environment,
Info Quest Technologies is working intensively to continue its growth path in all areas, to expand its market shares and to achieve the
commercial targets it has set for the company and its subsidiaries. In particular:
•
it will continue and accelerate the transformation of its business model from a Tier2 distributor to a value creation platform
through an ecosystem of vendors, partners, customers (From Distributor to Aggregator);
•
it will continue its digital transformation and enhance the knowledge and skills of its employees;
•
it will continue to invest in an advanced and inclusive work environment;
•
it will further optimize the operation of the new Logistics Center for maximum benefits.
From a commercial perspective, the following create positive prospects:
•
The expected improvement in the economic climate and the gradual transition to a positive trend in the domestic and
international PC & Smartphones market;
•
the implementation of major digital transformation projects, utilising the resources of the RRF;
•
the focus on Cyber Security space;
•
the further utilization of Cloud solutions and services, from market sectors with low penetration to date, such as SMEs;
•
the strengthening and utilisation of Team Candi's know-how and the creation of an Ecosystem of integrated AI solutions for
enterprises;
•
exploring activity in the EV Charging space, both in terms of infrastructure and platform, as well as installation and support
services;
•
exploiting the opportunities arising from the enhancement of the company's role as a Top 20 Microsoft Indirect Provider in
the expanded CEMA Region;
•
the new Xiaomi and POCO smartphone lines, with the aim of increasing share especially in the premium segment;
•
the new products in the Xiaomi ecosystem with a special focus on the new range of Smart TVs, Robotic vacuum cleaners and
tablets;
•
the further expansion of the business in Romania targeting high growth rate while increasing market shares;
•
the expansion of the Xiaomi Stores network in Greece, Cyprus and Romania.
In conclusion, despite the multiple challenges and the great uncertainty in the business environment, the company's Management
believes that the continuous monitoring of developments, the systematic preparation for integration in new regions and targeted
investments, the gradual implementation of major projects in Greece and the overall acceleration of the transition to the new digital
era will help the company achieve its goals and create added value for the entire Greek society.
Quest Online S.M.S.A.
(e-commerce www.you.gr)
, the online store of the Quest Group, is one of the largest and most reliable purely online stores with 98% of its customers
stating that they are very satisfied with the store and its services.
In 2023, the Consumer Electronics market (which accounts for the majority of the turnover of
you.gr
) moved slightly upwards as a
whole, while electronic sales were slightly reduced. State aid programs such as the recycle -replace my appliance program for old
energy-intensive appliances helped boost sales in the respective categories, while on the contrary, demand for IT equipment continued
to be constrained.
you.gr
reported a turnover of €33.05M, up slightly vs. 2022, with a significant improvement in EBT (€161K, +118% vs. LY). Sales of Apple
products and Smartphones, in general, as well as of home appliances increased significantly, while the products included in the
aforementioned replacement programs of the State also made a significant contribution to sales.
With the aim of improving shopping experience and customer satisfaction, 2023 saw significant improvements across the entire
shopping journey and interaction of each visitor with
you.gr
. By way of indication:
Financial statements for the year ended 31 December 2023
(Amounts presented in thousand Euro unless otherwise stated)
24
•
The range of products was enriched, which now exceeds 50,000 products;
•
the redesign of the site with the aim of better navigation began;
•
the customer support centre was redesigned;
•
personalization and support during the purchase process was reinforced with new content (e.g., guides for the right choice
of air conditioner);
•
new tools were used to optimise advertising performance;
•
delivery method (e.g., lockers) and payment method (e.g., instalments without credit card) options were optimized and
enriched;
•
support for the professional market (SOHO, B2B) was strengthened;
•
the process for easy management of vouchers for subsidized programs was optimised
2024 Outlook
Quest OnLine will continue to implement investments in systems and infrastructure, offering multiple choices to consumers in a secure,
modern and easy online shopping environment.
Given the market conditions, the company expects to expand its market share in the product categories it invests in, improving its year-
over-year performance. It will continue to participate in all subsidized programs related to its activities by proposing top products and
services to its customers. Quest OnLine, will continue its aim to continuously improve the shopping experience of each customer, investing
in new innovative technologies, new ways of reaching consumers and new partnerships, expecting you.gr to become firmly established in
the preferences of consumers who choose online shopping.
Clima Quest S.A.S.A.
(Gree air conditioning systems)
In 2023, Clima Quest, the exclusive distributor of Gree in Greece, the world's largest manufacturer of air conditioning systems, reported
a turnover of €11.2M, up 34% compared to the same period in 2022, and EBT of €425K, up 100% compared to the previous year. The
company's sales were slightly impacted by the replacement program for old, energy-intensive air conditioners, which was underway in
the first nine months of 2023. The company further focused on growing its partner network, both in terms of the specialist installer
channel and the major retailers serving consumers. Nationwide, the company's partner network exceeds 450 partners, marking a
significant expansion compared to previous years.
It is noted that GREE, develops and manufactures air conditioning systems, heat pumps, water systems and dehumidifiers, offering
complete and integrated solutions for residential, commercial and industrial applications. At the heart of all Gree's business activities
is innovation and environmental sustainability, which is reflected in its commitment to provide the most efficient and sustainable
solutions to meet all cooling and heating needs.
In the current climate and energy crisis, Gree's innovation and excellence in efficiency,
green design, and low energy consumption are expected to boost sales and penetration in the Greek market.
2024 Outlook
With regard to 2024, it is estimated that the expiry of the state's air conditioners replacement programs that were offered in 2023 will
negatively impact the home air conditioning market, which grew significantly vs 2022. Nevertheless, Clima Quest is estimated to
continue its growth, with the aim of increasing market share and further establishing itself in the market, with a focus on commercial
air conditioning solutions. Given the investment in personnel and know-how, the technological superiority of the manufacturer, the
large and systematically improving product range, the orientation towards offering more "green" solutions for both the home and
commercial market, the company is prepared to take advantage of all opportunities, as well as any state programs contributing to a
higher quality and cleaner environment in our country.
Financial statements for the year ended 31 December 2023
(Amounts presented in thousand Euro unless otherwise stated)
25
G.
Ε
. Dimitriou
(Distribution of air conditioning products and home appliances)
G.E. Dimitriou is the exclusive distributor of Toyotomi air conditioners - the No.1 brand of air conditioners in Greece for many
consecutive years - with a market share that according to analysts' data approached 18% in 2023. The innovative features of the
products (such as the use of AI technology to adapt to the user's habits), its environmentally friendly operation (R32 refrigerant, low
energy consumption and low noise level) and advanced service and support services have contributed to the systematic and continued
successful presence in the market.
2023 was the first year that G.E. Dimitriou developed its business as a standalone member of the Quest Group without the support
(sub-distribution) of Info Quest Technologies. Therefore, there are no comparative figures with the previous year. The company's 2023
turnover amounted to €53.8M and EBT to €2.7M. The State's appliance replacement and recycling programme, which was underway
in the first nine months of the year, brought about significant rearrangements in the air conditioning market. Sales were significantly
boosted at a time of the year when there is usually not much activity. The total home air conditioners market is estimated to have
increased by 35% to over 650K sets (of which approximately 200K sets were provided through the program) and the momentum of the
retail sales channels increased significantly. G.E. Dimitriou, with the right commercial approach, availability and market positioning,
was able to capitalize on the opportunity and maintain its leading position by remaining in the lead in terms of sales share.
A significant part of the company's business is the marketing of products in a multitude of categories in both air conditioning, heating,
dehumidification and small appliances (SDA) through the historic Singer brand name. Taking advantage of the fact that Singer has been
the market leader for sewing machines and ironing presses for years the company has systematically developed and evolved an
extensive number of modern, quality and competitive products with ever-improving market shares.
2024 Outlook
With regard to 2024, it is estimated that the expiry of the State's air conditioners replacement programs that were offered in 2023 will
negatively impact the home air conditioning market, which grew significantly vs 2022. However, growth in the heat pump sector is
expected both through State programs and as a result of the ever-increasing consumer interest in more cost-effective and
environmentally friendly heating solutions. Both of the Group's air conditioning companies are expected to play an important role in
this growing market.
G.E. Dimitriou will continue its growth, with the aim of providing the best possible service to the market, developing its reseller network,
introducing even more innovative and technologically advanced products and further expanding its market share. At the same time, in
addition to the air conditioners market, it will seek further growth in the small domestic appliances (SDA) market with its “Singer” brand
name. Finally, it is entering the major domestic appliances market (MDA) through the distribution of products manufactured by the
historic and well-established companies Brandt, France (leader in the washing machines category) and Faber, Italy (the inventor of the
cooker hood). We believe that both the further development of the SDA business and the entry into the very large MDA market will
significantly strengthen the company's market position.
Today, when the climate crisis requires immediate mobilization and action from everyone, the leader, G.E. Dimitriou, is preparing to
continue to provide innovative cooling - heating solutions that will help to mitigate the impact from which we are all suffering.
EPAFOS
(Provision of Digital Technologies solutions and services to educational institutions)
2023 Report
EPAFOS, which joined the Quest Group in June 2023, specializes in providing specialized applications, solutions and equipment with a
focus on educational organizations. The company has enjoyed a long successful track record in its field, based on its innovative
approach, quality of service and reliability. In 2023 the company significantly increased its turnover by 28.7% compared to 2022 (from
€5.53M to €7.12M) and its profits by 100% (EBT from €610K to €1,250M).
Financial statements for the year ended 31 December 2023
(Amounts presented in thousand Euro unless otherwise stated)
26
The increase in revenues in both of the two business categories the company focuses on was particularly significant, namely:
•
approximately 37% growth in standard software as a service (SaaS) products, and
•
approximately 50% growth in services, both in custom development and technical services
•
37