The quest for efficiency, which included measures such as cost reduction and a process review, increased Valid’s competitiveness (B³: VLID3 – ON) in 2018. Focused on strengthening its global presence and further diversifying its portfolio of solutions, the company’s net profits more than doubled, reaching R$ 100.1 million, in comparison to R$ 27.7 million in 2017.
Reinforcing its global role in “connected lives,” Valid expanded its portfolio and executed important partnerships and acquisitions last year. In October, the acquisition of 51.8% of Agrotopus – a startup focused on corporate solutions for the agribusiness industry – was announced. Another “avenue of growth” begun in 2018 was focused on solutions for Smart Cities. In this area, Valid took on the issuance of the municipal card solution for the cities of Providence, Rhode Island (in the US), and São Caetano do Sul, São Paulo State, Brazil.
In 2018, the Valid solutions that ensure identification in documents, smartphones, chip cards, digital certificates, banking apps, and means of transport crossed more borders. In the United States, following the strategy of increasing market share, the company was selected to provide driver’s licenses and identification cards in the state of Vermont. This is the third American state to start distributing driver’s licenses produced by Valid. On another front, Valid signed a commercial partnership with China Unicom, China’s largest telecommunications provider, to supply E-UICCs (embedded SIM cards) and a subscription management platform, reinforcing its presence on the market with the greatest global growth potential for Internet of Things (IoT) models.
“Last year’s results increase our confidence and reflect our tireless effort to improve operational processes and efficiency. We truly achieved the goal we set for ourselves back in 2017. We have now embarked on journeys on new avenues, which we have forged for our future and for the age of connectivity: Technology for Agribusiness, Smart Cities, Track & Trace, Biometrics, and Internet of Things, for example”, points out Carlos Affonso D’Albuquerque, Valid CEO.
Consistency – 2018’s financial performance was consistent. For the year as a whole, net earnings increased 10.2% over 2017 (R$ 1.7 billion vs. R$ 1.6 billion). The company showed a solid EBITDA growth over 2018, at R$ 305 million, 24% higher in comparison to 2017, and an EBITDA margin of 17.6%, two percentage points up over 2017, reflecting the cost reduction efforts with improved margins.
“We started 2019 with the certainty of having accomplished a mission, thanks to the tireless work of our teams in all regions where we world. Valid is porting its know-how and credibility in secure identification from the physical world, into the digital world. We are prepared for an interconnected world,” concludes the Valid CEO.
To learn more, visit www.valid.com.