Milan: Italian high-tech company SECO (IOT.MI) expects revenue to grow in “double digits” next year as it is also benefitting from Western companies shifting their supply chains to Europe in the face of geopolitical tensions, CEO Massimo Mauri said on Monday.
SECO, which specialises in the development of “Internet of things” systems connecting devices like cars and medical devices to the internet, doubled its core profit in the first half of this year while confirming its 200 million-euro sales guidance for 2022.
“European and U.S clients prefer having a global supplier based in Europe rather than in Asia, given the current circumstances. This is helping us,” Mauri told Reuters.
He added it was too early to say whether the company will top its annual targets this year but he did not rule out a positive surprise.
“We historically exceed targets … We are working to do that. For 2023 we are forecasting a double-digit growth in revenue.”
Shares in the Milan-listed company were trading over 6% higher on Monday, outperforming a 2.3% rise in Italy’s all-share index (.FTITLMS).
Mauri said SECO is eyeing some acquisition targets in the United States as part of its growth strategy but he added M&A will be an issue only in 2023.
The company is still experiencing the impact of a global semiconductor shortage, the executive noted.
“We are expecting a gradual back to normal … which we believe could materialise between the end of the first quarter and the beginning of the second quarter next year”, Mauri said.