Analysis per business segment

  31/Mar/21 31/Mar/20  Evolutie
Venituri din contracte cu clientii  18,134,687   17,601,838 3%
Venituri din prestarea de servicii       4,055,980       4,432,041 -8%
Vanzarea de marfuri     14,078,707      13,169,797 7%
Costul vânzărilor  15,089,358   14,693,004 3%
Costul vanzarii marfuri/materiale     11,421,456      11,394,359 0%
Servicii cloud       1,251,314       1,062,746 18%
Ore-Om       2,416,588       2,235,899 8%
Marja bruta    3,045,329     2,908,834 5%
Alte venituri          11,800            8,095 46%
Cheltuieli de vanzare/distributie    1,360,364     1,420,369 -4%
Ore-Om       1,202,476       1,274,329 -6%
Publicitate          157,888          146,040 8%
Cheltuieli administrative (dintre care)    1,411,582     1,458,186 -3%
Cheltuieli de personal          743,558          845,097 -12%
Amortizare          283,122          295,286 -4%
Alte servicii terti          164,669          139,076 18%
EBIT        285,183          38,374 643%

The Technology Division registered a solid result in the context of all delivery gaps from producers, recording revenues of 18.1 million lei, a 3% increase YoY, which generated a 5% increase in the related gross margin. Our technology providers (for example Cisco) have started to face major HW delivery issues and thus won projects that had to be delivered between October and December were partially delivered in Q1 2021.

Due to delays in delivery, for some projects the actual delivery of equipment or software licenses was successful (see ERP projects) but not all related services (installations, configurations, etc.) were completed, which is why the revenues from the provision of services decreased by 8.5%, while revenues from the sale of goods increased by 7%. These revenues from services will be found in the numbers for Q2 2021.

Furthermore, the lack of raw materials correlated with the reduced operation of factories and the effective delivery to Romania generates delays in the supply chain and, from our estimates, this phenomenon will continue to generate delays throughout 2021. Therefore, we will continue to postpone deadlines and projects will roll from one quarter to the next. Advanced delivery times from manufacturers have increased from 30 days (average for previous years) to over 100 days.

 Divizia de Educatie 31/Mar/21 31/Mar/20
Venituri din contracte cu clientii    2,068,544     3,387,986
Venituri din prestarea de servicii       2,068,544       3,387,986
Costul vânzărilor    1,101,761     1,145,406
Costul vanzarii marfuri/materiale           34,332          391,235
Ore-Om       1,067,428          754,171
Marja bruta        966,783     2,242,579
Alte venituri          91,958          91,039
Cheltuieli de vanzare/distributie        697,141        358,656
Ore-Om          486,809          287,770
Publicitate          210,332            70,885
Cheltuieli administrative (dintre care)    1,233,373        833,146
Cheltuieli de personal          497,858          259,414
Amortizare          427,340          205,590
Alte servicii terti          195,440          128,012
EBIT      (871,773)     1,141,816

The Education Division recorded a declining result in the Q1 amid postponement of the approval of several budgets and retention specific to periods of economic turmoil. Thus, in Q1, revenues of 2.1 million lei were registered, decreasing by 39% YoY and a gross margin of 967,000 lei decreasing by 57% YoY. Based on discussions with customers and the growing volume of requests for digital skills development programming, we are convinced that it is only a matter of delay in approving budgets and clarifying programs and learning pathways.

This also adds to the non-reimbursable funding opportunities that the government provides for the development of human capital. Thus, some of our customers have requested funding through these financing schemes, a process that is slower than reported. We expect that in the coming months a part of the funds will be released and thus significant education projects in which we can participate will be launched.