Ángel C. Álvarez – 13/12/2024 – El Economista
The Valencian company Riba Mundo plans to expand its business as a B2B operator beyond the consumer electronics sector starting in 2025. The company aims to enter new categories, bringing its business model to segments such as para-pharmacy and beauty and cosmetic products, as explained by José Piñera, CFO of Riba Mundo. He also mentions that the company is considering potential acquisitions for growth.
Riba Mundo, which originally focused on wholesale distribution of smartphones and tablets, shifted its business model in 2020 when Marco Dezi, its current CEO and major shareholder, joined as a partner and manager. He aimed to transform the company from a distribution operator into a technology-driven business.
To achieve this, Riba Mundo developed its own Big Data and Artificial Intelligence platform called MarVin, which enables the analysis of global buying and selling opportunities for each product and offers them to customers ranging from small local shops to large retailers.
“Our software allows us to set real-time prices and analyze the most popular products at any given time,” says Piñera, highlighting that it mainly relies on variables like price, availability, and delivery speed, with most products shipped within 24 to 48 hours, and more than 65% transported by air.
This implementation helped Riba Mundo increase its revenue from €59 million in 2020 to over €434 million last year, and even list on the Milan Stock Exchange, where it is the only Spanish company on the Euronext Growth Italy. With sales in 45 countries, Italy and Spain are the largest markets, accounting for more than 40% combined.”
Growth Plan
The company seeks to further rebrand itself as a technology firm rather than just a consumer electronics distributor and to become a leader in Europe, according to Piñera. It has gradually expanded its business, with an increasing range of consumer electronics, so much so that smartphones and tablets, which once accounted for over 90% of its sold units, now represent only 58% in the first part of 2024.
Next year, Riba Mundo plans to enter other segments with higher margins than electronics. Piñera explains that the company has been analyzing categories like para-pharmacy and beauty, cosmetics, and personal care, though the final decision will depend on factors like legal regulations in key markets and logistics planning.
The company, with a majority of Italian capital, is also considering inorganic growth. “We are analyzing some companies for growth, particularly in search of supply sources” says Piñera. In fact, the company entered Italy’s second-largest marketplace, ePrice, two years ago, when it was undergoing insolvency proceedings.
This year, it increased its stake to 67%. “It allows us to gain market and consumer insights,” Piñera explains, though he believes the company must still optimize its operations in Italy before expanding to other countries like Spain.
After nearly exponential growth, Riba Mundo increased its sales by 19.4% to €365.7 million as of September this year, according to Piñera. In terms of profitability, the company reduced its net profit by 71% in 2023 to €1.55 million, a decline Piñera attributes to rising interest rates, which impacted financial costs. “We expect net profitability to improve in 2025,” he says, noting the company is still improving its gross margin, which grew from 4.10% to 4.77%.
The Stock Market Move in Italy
Last year, Riba Mundo became the first Spanish company to list on the Euronext Growth Milan. “We considered alternatives in Spain, Paris, and Italy. At the time, Italy had more liquidity, which has changed since then, and it was easier for us due to our shareholders,” explains Piñera.
Although the company has lost some market capitalization, Riba Mundo’s CFO believes the listing has achieved its goal of positioning the company in the market and raising global awareness of its business model. “We had major clients who saw us as just another supplier. Since the IPO, that perception has changed as they got to know us better, and having that credibility has allowed us to grow with them,” he says.
Another key factor in Riba Mundo’s operations is its location between the Valencian towns of Loriguilla and Ribarroja, in the largest logistics hub in Valencia, just minutes from the Manises Airport. Almost 99% of its products pass through its logistics center in Valencia, which Piñera notes has a high average ticket value.
This was one of the areas most affected by the tragic DANA flooding, although Riba Mundo’s logistics facilities were not damaged, unlike other warehouses nearby. “In the first few days, we had access issues, but we didn’t suffer material damage,” Piñera explains. However, its logistics operations were somewhat disrupted during those early weeks.
– El Economista
https://www.eleconomista.es/retail-consumo/noticias/13131384/12/24/riba-mundo-saltara-mas-alla-de-la-electronica-en-2025-y-estudia-compras-para-crecer.html
