European drone group Parrot’s struggles with long sales cycles are no secret. The company, which relies on orders from government institutions and armed forces, has undertaken several measures to reduce its cash consumption amid tepid drone sales. But ahead of the third-quarter revenues next month, Parrot is now warning investors that the group’s growth may be hampered even further.
In its first-half earnings report, Parrot explained that the pace of order intake is difficult to predict, primarily because of the global economic situation and administrative delays. But now, the company says that even those orders that were expected to be confirmed and delivered in 2023 are being deferred to 2024.
“At the end of the first half of 2023, Parrot continued to expect orders to be confirmed and delivered in 2023, generating sales growth compared with 2022. At this stage, the Group estimates that it will be able to achieve consolidated sales of at least €60 million ($63.3 million) in 2023, compared with €71.9 million ($75.9 million) in 2022, representing a decline of around 16%, taking into account the Group’s two main activities (photogrammetry solutions and microdrones),” reads a statement from Parrot.
The company is also quick to point out that consolidated sales for Q3 2022 stood at €21.6m ($22.8 million) and represented 30% of sales for 2022. This included significant deliveries to defense and security institutions, which Parrot now recognizes as its most buoyant segment. As such, the company is focusing all new research and developmental efforts on drones designed especially for defense and security applications.
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