6/12/2024
Riba Mundo will expand beyond electronics in 2025 and is considering acquisitions to grow
The Valencian company Riba Mundo plans to expand its B2B operator activity beyond the consumer electronics segment starting in 2025. The company intends to enter new categories, applying its commercial model to sectors such as parapharmacy, beauty and cosmetics products, as explained by José Piñera, CFO of Riba Mundo, who also stated that the company is studying possible acquisitions to support its growth.
Founded as a wholesaler mainly specialized in smartphones and tablets, Riba Mundo changed direction in 2020 with the arrival of Marco Dezi, current CEO and main shareholder, who transformed the company into a technology-driven business rather than just a distributor.
To achieve this goal, the company developed a Big Data and Artificial Intelligence platform called MarVin, which analyses global buying and selling opportunities, offering products to a customer base ranging from small local shops to large retailers.
“Our software allows us to set prices in real time and analyse the products with the highest turnover at any given moment,” says Piñera. The system is based on variables such as price, availability and delivery speed, with most products distributed within 24–48 hours and more than 65% transported by air.
Thanks to this approach, Riba Mundo grew from a turnover of €59 million in 2020 to over €434 million in 2023, also achieving its listing on Euronext Growth Milan. Italy and Spain are its main markets, together generating more than 40% of sales.
Exponential growth and new opportunities
The company is currently aiming to consolidate its position as a leading technology player in Europe. Although smartphones and tablets still account for 58% of the products sold, this share has decreased from more than 90% in previous years, showing that diversification is already underway.
From 2025, the plans include expansion into sectors with higher margins than electronics. The company is studying the parapharmacy, beauty and personal wellness segments, but entry will depend on legal regulations and suitable logistics in its main markets.
To accelerate its expansion, Riba Mundo is evaluating acquisitions, especially to broaden its supply sources. In 2022, it acquired a stake in the Italian marketplace ePrice, which had previously been in financial difficulty, increasing it this year to 67%.
This year, it increased its stake to 67%. “It allows us to gain information about the market and the end consumer,” says the executive, although he believes it is still necessary to optimise its operations in Italy before making the leap to other countries, such as Spain.
After almost exponential growth, up to September this year the company increased its sales by 19.4%, reaching €365.7 million, as Piñera points out. In terms of profitability, in 2023 the company reduced its net profit by 71%, down to €1.55 million, a decline that the CFO attributes to the evolution of interest rates, which had an impact on financial costs. “We expect net profitability to improve in 2025,” he comments, referring to the change in trend, while also noting that the company continues to improve its gross margin, which rose from 4.10% to 4.77%.
The stock market debut in Italy
Last year, Riba Mundo became the first Spanish company to list on Euronext Growth Milan. “We evaluated the alternatives of doing so in Spain, Paris and Italy. At that time, Italy had greater liquidity, something that has changed significantly since then, and it was easier for us than other countries thanks to our shareholders,” explains Piñera.
Although the company has lost market capitalisation, Riba Mundo’s CFO believes that the stock market listing achieved its objectives of positioning the company in the market and making its model known more globally. “We had major clients who saw us as a medium-sized supplier or just one more supplier. Since becoming a public company, that perception has changed: they know our company better, and having those guarantees has allowed us to grow with them,” he comments.
Another key aspect of Riba Mundo’s activity is its location between the Valencian municipalities of Loriguilla and Ribarroja, in Valencia’s largest logistics hub and just a few minutes from Manises airport. According to Piñera, 99% of its products pass through the Valencia logistics centre, which has a high average ticket value.
That area was one of the most heavily affected by the floods caused by the tragic DANA, although Riba Mundo’s logistics facilities did not suffer damage like other nearby structures. “In the first few days, we had access problems, but we did not suffer material damage,” he explains. However, all its logistics activity was partially affected during those first weeks.