Geopolitical Risks Propel Czech Drone Producer to Record Profit
(Bloomberg) -- Czech drone maker Primoco UAV SE announced record half-year profit as rising defense spending globally spurred demand. Its shares rallied.
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The Prague-based company is benefiting from a surge in security spending, driven by Russiaās invasion of Ukraine, conflict in the Middle East and global geopolitical tension. Primoco, which joined the main market of the Prague Stock Exchange earlier this year, makes medium-sized unmanned aerial vehicles used, among other things, for combat reconnaissance and border monitoring.
Net income for the January to June period jumped 81% from a year earlier to 121 million koruna ($5.4 million), while earnings before interest, taxes, depreciation and amortization surged 128% to 157 million koruna, Primoco said. It also reiterated its expansion plans, saying it will invest about 750 million koruna in a new facility to more than double its production capacity by 2027.
The company expects to sign new orders for as many as 60 UAVs with a total value of around 1 billion koruna this year, compared with 33 orders last year.
The companyās shares jumped as much as 12% on Monday after publishing the results. The stock traded up 7.3% at 960 koruna as of 10:10 a.m. in Prague, valuing Primoco at 4.52 billion koruna.
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