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International Internet Magazine. Baltic States news & analytics Tuesday, 26.05.2020, 12:28

Estonia: Cleveron sees strong increase in both revenue, profit in 2018

BC, Tallinn, 29.04.2019.Print version
The revenue of Viljandi-based manufacturer of parcel robots Cleveron grew 4.2-fold on year to 47.7 mln euros in 2018, while the company's sales revenue was also greater than that of the last ten years of operating in total, informed LETA/BNS.

Cleveron's net profit also grew strongly. While in 2017, the parcel robot manufacturer earned a profit of 723,600 euros, then in 2018, the company's net profit stood at 7.6 mln euros.

The management of the company said in the annual report that the strong increase in sales revenue was mainly impacted by the increase in the Cleveron 401 serial production volumes. At that, the company in 2018 mainly focused on increasing the global market reach.

"The main reason for that is the challenges originating from the increase in e-commerce, which affect traders the most. The volume of e-commerce in global retail is estimated to be approximately three trillion euros in 2019. In the coming years, the growth of the total market of e-commerce is estimated to be an average of 16% per year," the management board said in the annual report.

Due to an increase in operating volumes, the company's various operating expenses also grew in 2018. Cleveron invested a total of 6.5 miln euros last year. The biggest investment was the expansion of the Viljandi development and production building from 3,000 square meters to 10,500 square meters, the cost of which was some 3.6 mln euros.

This year, Cleveron is planning to continue intense development activity as a result of which the company is wishing to introduce to the world new innovative solutions. In addition, the company will continue increasing its global market reach.

Last year, the average number of people employed by Cleveron was 142, marking an increase of 63% on year. The company's salary expenses rose from 2.1 million euros in 2017 to 4.4 mln euros in 2018 and labor expenses reached 6.2 mln euros. According to the employment register, there were 208 people working at the company at the end of the first quarter of 2019.

Cleveron is a company involved in creating robotics-based parcel terminals and developing last mile click and collect pickup solutions for retail and logistics sectors. The company supplies its parcel robots to the US retail giant Walmart, among others.

The company's ultimate beneficiaries are Arno Kutt with a holding of 34.7% and Peep Kuld with a holding of 16.48%.

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