11 July 2022
VIGO’s Q2 revenue grows 12.7% year-on-year
For second-quarter 2022, VIGO Photonics S.A. of Ożarów Mazowiecki, Poland (which manufactures mid-infrared photonic detectors, detection modules and semiconductor materials) has reported revenue growth of 12.7% year-on-year to PLN20.3m.
Sales of semiconductor materials rose by 21.2% to PLN1.31m (6.5% of total revenue). Sales of detection modules rose 12.2% to PLN19m (93.5% of total revenue), with transport, industry and science & medicine the best-growing applications.
The largest growth in detection modules was recorded among industrial applications (up 37.7% from just over PLN7m a year ago to PLN10m, 49.3% of total revenue) and transport applications (up 57.3% from under PLN2m to PLN3m, 14.9% of total revenue). The science & medicine division is also on the rise (up 36.2%, to just 5.9% of total revenue, but particularly important for the firm’s growth). In the military segment (23.3% of revenue), the firm is still fulfilling orders, but their number has now decreased compared to last year.
VIGO’s second-best-ever revenue quarter is attributed to the consistently implemented growth strategy adopted in 2021. The record of PLN22.3m in Q4/2021 was influenced mainly by the execution of orders in the detector segment for two customers in the security systems and defence industries.
First-half 2022 revenue totalled PLN32m. “We are growing, despite many market challenges,” notes Adam Piotrowski, president of the management board.
Orders from Asia up nearly three-fold year-on-year in first half 2022
Q2/2022 orders were up 36% year-on-year. A particularly significant increase in orders was recorded from the Asian market — up nearly three-fold year-on-year for first-half 2022. The US market grew by 28% and the European market by 18%.
“It confirms the constantly growing interest in VIGO products and the development of new applications for infrared detectors,” notes Łukasz Piekarski, member of the management board. “It facilitates production planning, which is particularly important with the current problems of access to certain electronic components. Thanks to larger orders from existing and new customers, we are able to secure better prices and shorter delivery times,” he adds.
Goals in new development strategy
After beginning operation in 1987 and being listed on the main market of the Warsaw Stock Exchange since 2014, in 2021 VIGO presented a new two-stage development strategy for 2021–2026, in which six development initiatives — technological areas, aimed at strengthening the company’s position as one of the most innovative and dynamically developing companies on the market — were singled out (including, in December, beginning a rebranding involving changing the firm’s name from VIGO System to VIGO Photonics). By 2023, the firm’s objective will be to continue the R&D projects initiated in photonic technologies, integrated circuits, detectors made of III-V materials, epitaxy of semiconductor materials, and infrared source technologies. The technological and technical base will be developed.
The firm reckons that its development strategy will allow it to maintain a 20-30% annual revenue growth rate, to about PLN80m in 2022 and PLN100m in 2023. Earnings before interest, taxes, depreciation and amortization (EBITDA) is expected to rise to about PLN40m in 2023 (totalling PLN103m of normalized EBITDA for 2021–2023). The second stage of the strategy will be executed until 2026 (inclusive) and will consist of the implementation of selected development initiatives.