Drone Volt Doubles Sales But Remains Unprofitable

Drone Volt: Sales Double, Stock Collapses

In October 2015, Drone Volt traded around €13, embodying the boom in civilian drones. Six months later, the French stock was languishing at €1.26. In between, a split to boost liquidity, doubled revenue, and no profit. The company, headquartered in Villepinte with a presence in Copenhagen, manufactures and assembles some models while distributing others since its founding in 2011. It manages over 1,000 catalog references and boasts two indoor flight centers in Paris Nord 2.

Drone Volt Revenue: What Grew and How Much

H1 2015 results showed 137% growth. By nine months, sales were up 110%, excluding contributions from the Scandinavian subsidiary that began operations that summer. Viewed in perspective, activity multiplied by 350% in eighteen months. Q1 2016 continued the streak: €1.4 million billed versus €0.6 million in the same period of 2015, again exceeding 100%.

These figures explain why many investors were slow to exit. Triple-digit growth for several consecutive quarters. This coexisted with growing distrust not based on revenue, but on the fine print of the income statement.

Why Is Drone Volt Still Not Making Money?

Because growth is costly, and here it costs more than it brings in. The company closed 2015 with turnover of €3.7 million, double the previous year, but with an operating loss of €0.9 million and a net loss of €0.6 million. Management merely pointed to a "financial structure reinforced in line with ambitions": €1.2 million in equity and €0.5 million in net cash trinc prior capital increases. No official profit forecasts.

Translation: sales revenue did not cover infrastructure, expansion, and product development simultaneously. Bulls argued takeoff would come in 2016 and especially in 2017 and 2018, when operational leverage would kick in. Skeptics countered with another question: what if the market took two more years to pay for that promise? For now, the price sided with the skeptics.

International Expansion: From Denmark to the US and Switzerland

Opening the first international subsidiary in Copenhagen was the starting gun. The company chose Denmark for its favorable civil aviation laws, aiming to cover Sweden, Norway, and Finland from there. This move was joined by a joint venture for Benelux, an agreement in Canada, and commercial offices in the United States and Switzerland, led by a consumer electronics and drone expert in the US operation.

The narrative was flawless: each new market, another revenue stream. The fine print too: each new market, an additional cost structure before billing. The Danish delegation, for example, was not included in the first nine months of 2015 accounts because it started later.

HEXO+ and Spray Drone: Contracts Expected to Boost Price

In February 2016, the company announced an exclusive distribution deal with HEXO+ for its drones in Europe, a multi-year contract whose arithmetic was handled by the company itself, resulting in a 17.57% jump in a single session, with volume near 250,000 shares mid-day. That same day, Invest Securities upgraded its recommendation from neutral to buy and adjusted the target from €1.95 to €2.

Before that, in November 2015, the French civil aviation authority had certified the Drone Spray for tethered flights, allowing operations on buildings up to 30 meters high without scaffolding: roof cleaning, painting, and facade work. The stock celebrated the news with a 7.8% rise on the day the company presented new models.

From Split to €2.4 Highs and the Hangover

The stock crossed above €14 and, after the split applied to gain liquidity, moved between €1.74 and €1.95 with peaks above €2 and an all-time high of €2.4. A recurring explanation circulated regarding the subsequent crash: the sale of a small package by the main shareholder—who once controlled nearly 90% of capital—would have flooded the market with paper and halted the price. This is a hypothesis, not audited data.

What is verifiable is the drop. From €1.80, the stock lost 10% in a month, rebounded, and in April 2016 dropped 8.9% in a single day to €1.33; days later it traded at €1.26. And this peine just after publishing a first quarter with more than doubled revenue. The numbers were good, so the selling wasn't driven by them: some forum users attributed it to fatigue waiting or rotation into other ideas, such as lithium miners.

That's where analysis stalls. A company growing 100% in sales, with international expansion advancing on multiple fronts and a freshly issued buy recommendation, trades 37% below the €2 target set by Invest Securities. Either the market discounts that profit won't arrive, or it simply stopped looking.