Year-end report 2015Lund, 2016-02-17 08:00 CET --
Strong sales in all markets
October – December 2015
• Net sales amounted to SEK 625.6m (437.1), an increase of 43.1 percent.
• Net sales growth, excluding Caretech, was 31.6 percent.
• Operating profit (EBIT) of SEK 58.7m (35.2), corresponding to an operating margin of 9.4 percent (8.1).
• Order intake amounted to SEK 527.5m (366.9), an increase of 43.8 per cent.
• Order book at the end of the period amounted to SEK 193.7m (65.2), an increase of 197.1 percent.
• Profit after tax for the period amounted to SEK 42.4m (22.4).
• Earnings per share after tax amounted to SEK 1.82 (1.06).
• Cash flow from current activities amounted to SEK 32.1m (-9.8).
CEO comment
It is with great satisfaction that I look back on a strong 2015. Doro delivered more than 43% sales growth in the fourth quarter and for the full year, with a gross margin that gradually has recovered from the rapid US dollar increase one year ago. In the fourth quarter, EBITDA increased 58 percent to 72 MSEK compared to the same quarter last year. Further, the cash flow from current activities improved to 32 MSEK for the fourth quarter compared to negative in same quarter last year. We are entering 2016 as a growth company, now with revenues approaching 2 BSEK and close to 300 employees.
We successfully launched our 4G smartphone in Europe in the fourth quarter and we are looking forward to launching it in the US and Canada during the first quarter 2016. In 2015 we sold about 2.8 million mobile phones (2.5 million in 2014). In terms of specific markets, we experienced particularly strong growth in among others the Baltics, Spain and Italy. In 2015, we invested significantly to develop an improved user interface for our smartphones and cloud connections for relatives of our users.
The Caretech acquisition, now called Doro Care, has during 2015 materialized synergies within sales, marketing, R&D, HR and finance. The integration has been successful and given us a platform for service offerings. Our ambition is to grow our B2B offerings within mobile telecare, increasing average revenue per user and expanding geographically via acquisitions. In 2015 Caretech sales grew 38%, we entered the Norwegian market and achieved good sales in Germany, UK and the Netherlands. To further strengthen our international presence, we are continuously evaluating complementary acquisitions.
In Sweden, the trend toward conversion of analogue personal alarms to digital puts Doro Care at a distinct technical advantage in the market. We now serve over 65% of Swedish municipalities. The number of subscribers has increased by 26,000 to more than 80,000 in 2015, (compared to an increase of 11,000 in 2014), generating SEK 71m in recurring revenues entering 2016. To drive this expansion and offer a 100% redundant service, we have decided to open an additional alarm receiving center in Kalix, Sweden.
The next step of our strategy is to develop a B2C service platform by combining the Doro Care infrastructure with the marketing channels and skills of our consumer device business. Reflecting this ambition, we will in February at the Mobile World Congress (MWC) in Barcelona present the Doro Connect and Care application - a private social network service enabling social connections between Seniors and Carers.
The order book almost doubled to SEK 194m in Q4 2015, which makes me confident in our ability to continue to deliver profitable growth in 2016. I am convinced that our strategy across all our businesses will continue to bear fruit. Particularly within Doro Care, we see high-potential opportunities ahead. The solid platform we established in 2015 provides us with the assurance and ability we need to seize these opportunities.
Jérôme Arnaud, President & CEO
For more information, please contact:
President and CEO Jérôme Arnaud, +46 (0)46 280 50 05
CFO Magnus Eriksson, +46 (0)46 280 50 06
Doro’s report to be presented via audiocast
Analysts, investors and the media are welcome to attend a presentation via http://edge.media-server.com/m/p/fyg74cz6 or by telephone at 9.00 CET on February 17, 2016. Doro’s President and CEO Jérôme Arnaud and Doro’s CFO Magnus Eriksson will hold the presentation and answer questions. Before the start of the presentation, the material will be made available on http://corporate.doro.com/investors/financial-reports/financial-reports. Approximately one hour after the presentation has ended, an on-demand version will also be made available on the website http://corporate.doro.com/blog/hp-doro-webcast.
Phone numbers for the telephone conference, calling from:
Sweden, +46 (0)8 505 564 74
France, +33 (0)170 721 541
United Kingdom, +44 (0)203 364 5374
United States, +1 855 7532 230
About Doro
Doro develops telecom products and services for Seniors to lead full and rich lives: to do things they want to do more easily as well as the things they thought they might never do. The global market-leader in senior mobile phone, Doro offers easy-to-use mobile phones and smartphones, mobile applications, fixed line telephony with loud and clear sound. Within Doro Group, Doro Care offers social care and telecare solutions for elder and disabled persons for independent and safe living in their own homes. Doro AB is a Swedish public company and its shares are quoted on the Nasdaq OMX Stockholm exchange, Nordic List, Small Companies. Net sales of SEK 1,277 million (EUR 135 million) were reported for 2014. www.doro.com
This is information that Doro AB (publ) is required to publish in accordance with the Swedish Securities Markets Act and/or the Swedish” Financial Trading Act. This information was submitted for publication on 17 February, 2016 at 08:00 CET.
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