Beam Global Signs First European Distribution Agreement

Rhea-AI Summary

Beam Global (Nasdaq: BEEM) has signed its first European distribution agreement with Geci Group S.A. to market, sell, service, and support Beam's products in Spain, Portugal, and the Spanish-speaking Caribbean. This strategic move marks the beginning of Beam's expansion into international markets, particularly Europe, which is the largest market for their products.

Geci Group, a prominent manufacturer and integrator of transportation infrastructure, has experience in selling complex systems in transportation and energy sectors. The partnership aims to leverage Geci's existing relationships with potential customers in target markets.

This agreement is part of Beam's strategy to add outsourced distributors and agents to complement their internal sales team. The move comes as both Spain and Portugal show significant growth in electric vehicle adoption and charging infrastructure development, with market projections indicating substantial expansion in the coming years.

Positive

• First distribution agreement for European market, expanding sales resources internationally
• Partnership with Geci Group provides access to established customer base in target markets
• Expansion into Spain and Portugal, markets with high EV adoption rates and growing charging infrastructure needs
• Diversification of sales channels through integration of outsourced distributors and agents

Negative

• None.

Insights

Market Research Analyst

Beam Global's expansion into Europe through this distribution agreement with Geci Group is a strategic move with significant potential. The European EV market, particularly in Spain and Portugal, shows robust growth, with EV sales representing 10% and 15% of total vehicle sales respectively. The EV charging markets in these countries are projected to grow at impressive CAGRs of 28.3% and 30%, reaching $1.2 billion and $60 million by 2030.

This partnership allows Beam to tap into Geci Group's established relationships in key sectors like transportation, energy and military. However, Beam will face stiff competition from entrenched players like Iberdrola and Endesa in Spain. The success of this venture will largely depend on how well Beam's products differentiate themselves in terms of rapid deployment, scalability and total cost of ownership.

Financial Analyst

While the distribution agreement marks Beam Global's entry into the lucrative European market, its financial impact remains uncertain. The company's shift from an internal sales model to incorporating external distributors could potentially accelerate revenue growth and improve cost efficiency. However, this strategy also introduces new variables such as revenue sharing and potential channel conflicts.

Investors should monitor key metrics in upcoming quarters, including:

• Revenue growth rate in European markets
• Changes in gross and operating margins
• Customer acquisition costs

The success of this new sales approach could significantly influence Beam's scalability and long-term profitability. However, without concrete financial projections or terms of the agreement, it's premature to quantify the potential upside.

Tech Expert

Beam Global's expansion into Europe with its innovative EV charging and energy security solutions comes at a critical juncture in the continent's clean energy transition. Their focus on rapid deployment and scalability addresses key pain points in EV infrastructure rollout. The company's diverse product portfolio, which likely includes their signature solar-powered EV ARC™ charging stations, could provide a competitive edge in markets struggling with grid capacity issues.

However, the success of Beam's technology in the European market will depend on its adaptability to local regulations, grid standards and climate conditions. The company's ability to integrate with existing charging networks and smart city initiatives will be crucial. As the EV market matures, we may see increased demand for Beam's off-grid solutions, particularly in remote areas or during grid outages.

Geci Group will sell Beam Global Products in Spain, Portugal and the Spanish Speaking Caribbean

SAN DIEGO, Aug. 08, 2024 (GLOBE NEWSWIRE) -- Beam Global, (Nasdaq: BEEM), a leading provider of innovative and sustainable infrastructure solutions for the electrification of transportation and energy security, has signed the first distribution agreement for the European market. Geci Group S.A., a dominant manufacturer, supplier and integrator of transportation infrastructure, will market, sell, service and support Beam Global products in Spain, Portugal and the Spanish speaking Caribbean.

“This first distribution agreement is just the beginning of our strategic expansion of sales resources into international markets, especially Europe - the largest in the world for our products. I’m very enthusiastic about this new initiative of having quality organizations, who are well positioned within our target markets, multiplying our internal sales team’s efforts,” said Desmond Wheatley, CEO of Beam Global. “Geci Group is a perfect example of the sort of organizations that we are currently integrating into our model. They have an excellent track record of selling and maintaining complex systems within the transportation and energy sectors, including EVs, ports, aviation and EVTOLs and the military, and they also have deep relationships with the sorts of customer prospects who buy our products.”

“We have been following Beam Global for several years and have been testing the markets in Spain, Portugal and the Caribbean to assess the opportunity for their patented products. Rapid deployment, scalability, reliability, and low total cost of ownership are extremely important attributes for EV charging and energy security infrastructure. Beam provides a broad set of solutions for these challenges, and we are looking forward to delivering these benefits to our existing and prospective customers,” said Armando Salvador, Vice President and General Manager of Geci Group. “During our due diligence we visited Beam’s factories in the United States and Serbia and observed the products operating in the field. We are confident that Beam’s capabilities will play an important role in the electrification of transportation and delivery of clean and secure supplies of electricity in the markets we cover. We look forward to growing together, targeting these very large opportunities.”

Beam Global has, until now, made sales through an internal sales team. As part of the Company’s expansion plans in Europe and the Americas it is adding additional routes to market through the integration of outsourced distributors and agents who are not directly employed by Beam Global. Geci Group is the first such entity under contract and the Company is in the process of qualifying others.

Market overview (SPAIN)

• 200,000 Electric Vehicles on the road
• Electric vehicles sales represented about 10% of the total vehicle sales in 2023, with a steady annual growth rate of 30%
• The Electric vehicle charging market was valued at $168 million in 2023 and is predicted to reach $1.2 billion by 2030, with a CAGR of 28.3% from 2023 to 2030
• Key players include Iberdrola, Endesa, and Repsol, alongside several international companies like Tesla and Ionity
  

Market overview (PORTUGAL)

• 80,000 electric vehicles on the road
• Electric vehicle sales represent about 15% of total vehicle sales, with an annual growth rate of about 35%
• The electric vehicle charging market was valued at $60 million in 2023 and the projected market growth is a CAGR of 30% over the next ten years.
  

About Beam Global
Beam Global is a clean technology innovator which develops and manufactures sustainable infrastructure products and technologies. We operate at the nexus of clean energy and transportation with a focus on sustainable energy infrastructure, rapidly deployed and scalable EV charging solutions, safe energy storage and vital energy security. With operations in the U.S. and Europe, Beam Global develops, patents, designs, engineers and manufactures unique and advanced clean technology solutions that power transportation, provide secure sources of electricity, save time and money and protect the environment. Headquartered in San Diego with facilities in Chicago, Belgrade and Kraljevo, Beam Global has a deep patent portfolio and is listed on Nasdaq under the symbol BEEM. For more information visit BeamForAll.com, LinkedIn, YouTube and X (formerly Twitter).

About GECI Group
GECI Group is a global think-tank, technology and engineering solutions provider focused on the transportation, energy and infrastructure sectors in civil and military services. The company is Spanish based since 1983 and has evolved over the years through a significant expansion widening our field of services and presence across the entire world. With 40 years of experience, GECI works as a key contractor for several long-term strategic partners. GECI’s engineering expertise spans projects in civil works, telecommunications, transport, electric and electronics sectors. The corporation also has deep strength in logistics activity with scheduled deliveries and limited life material supply.

Forward-Looking Statements
This Beam Global Press Release may contain forward-looking statements. All statements in this Press Release other than statements of historical facts are forward-looking statements. Forward-looking statements are generally accompanied by terms or phrases such as “estimate,” “project,” “predict,” “believe,” “expect,” “anticipate,” “target,” “plan,” “intend,” “seek,” “goal,” “will,” “should,” “may,” or other words and similar expressions that convey the uncertainty of future events or results. These statements are only predictions and involve known and unknown risks, uncertainties and other factors, which may cause Beam Global's actual results to be materially different from these forward-looking statements. Except to the extent required by law, Beam Global expressly disclaims any obligation to update any forward-looking statements.

Media Contact:
Skyya PR
+1 651-335-0585
Press@BeamForAll.com

Investor Relations:
Core IR
+1 516-222-2560
IR@BeamForAll.com

FAQ

What is the significance of Beam Global's first European distribution agreement?

Beam Global's first European distribution agreement with Geci Group marks the beginning of their strategic expansion into international markets, particularly Europe, which is the largest market for their products. This move aims to multiply their sales efforts and reach new customers in Spain, Portugal, and the Spanish-speaking Caribbean.

How does the partnership with Geci Group benefit Beam Global (BEEM)?

The partnership with Geci Group benefits Beam Global by providing access to Geci's established relationships with customer prospects in the transportation and energy sectors. Geci's experience in selling complex systems in these markets is expected to help Beam Global expand its presence and increase sales in the target regions.

What are the market projections for electric vehicle charging in Spain and Portugal?

In Spain, the electric vehicle charging market is projected to grow from $168 million in 2023 to $1.2 billion by 2030, with a CAGR of 28.3%. In Portugal, the market was valued at $60 million in 2023 and is expected to grow at a CAGR of 30% over the next ten years, indicating significant potential for Beam Global's products.

How is Beam Global (BEEM) planning to expand its sales resources?

Beam Global is expanding its sales resources by integrating outsourced distributors and agents who are not directly employed by the company. This strategy complements their internal sales team and aims to increase their market reach, with Geci Group being the first such entity under contract.