Interim report January-March 2016Lund, 2016-05-03 13:30 CEST --
Good growth supported by successful launch and sales ramp-up in USA and Canada
January – March 2016
• Net sales amounted to SEK 413.0m (337.7), an increase of 22.3 percent.
• Operating profit (EBIT) of SEK 9.3m (-22.5), corresponding to an operating margin of 2.3 percent (-6.7).
• Order intake amounted to SEK 469.6m (423.3), an increase of 10.9 percent.
• Order book at the end of the period amounted to SEK 246.2m (140.3*).
• Profit after tax for the period amounted to SEK 5.8m (-21.7).
• Earnings per share after tax amounted to SEK 0.25 (-0.99).
• Cash flow from current activities amounted to SEK -32.0m (-44.6).
*) Order book in Q1 2015 is not including Caretech.
CEO comment
The launch of our 4G smartphone significantly improved our offer. We saw in the fourth quarter how it lifted sales in Europe. Now in the first quarter, we have launched it in the USA and Canada. Sales in this region have been strong, increasing almost 550%, although that is in comparison with a weak quarter last year. Our EBIT result improved with SEK 31,8m compared to the same quarter last year. The EBIT result last year was negatively affected by a non-recurring loss caused by insufficient hedging of currency exposure. The EBIT-margin this quarter is low at 2.3 percent, but the first quarter is normally profit-wise the weakest in the year. Doro Care suffered from temporary market weakness described below. The EBIT margin is expected to increase later in the year when turn-over rises and thereby improves the leverage on our expense base.
In Doro Care, sales in Sweden in the first quarter is still temporarily held back due to an appeal of a new framework agreement with the procurement office of the Swedish municipalities (SKL). Swedish municipalities are postponing new tenders until the outcome of the appeal is known. We hope for an outcome to be known within the coming months. Thereafter, we expect that the digitalisation process will regain momentum and Swedish customers again will place orders that will compensate for a large part of what has been postponed.
At the Mobile World Congress (MWC) in Barcelona in February we announced two important releases. One new app, the Doro Connect and Care, and a smaller 4G smartphone in two versions, Doro 8030 and Doro 8031.
The Doro Connect and Care is an app that makes it possible to enhance security and create a private social network between Seniors and Carers. The release of the app is the first step towards a full telecare service for senior users. A direct subscription with our mobile phones will offer access to our alarm centrals. It will initially be launched in Sweden but later also in Norway and other markets.
The two new mobiles are offered at a more competitive pricing than our first 4G smartphone, which adds an important edge to our product mix in several markets. By constantly developing new services and presenting new devices, we consolidate our growth strategy and position as the market leader in the growing niche for telecommunication for elderly.
In line with our strategy to expand Doro Care’s international presence, we announced the acquisition of the Norwegian Trygghetssentralen in February. We aim at accelerating the conversion of the Norwegian personal alarms market from analogue to digital technology, just as we currently are doing in Sweden. We have already started to see synergies materializing, shippings of Doro Care’s alarm devices have started to the Oslo municipality. The acquisition improves Doro Care’s Nordic platform, which is a key to a further international roll-out of our digital personal alarms offering.
Looking ahead, we are now focusing on the sales ramp-up of our two new 4G smartphones, the sustainability of our feature phones business, the integration of our Norwegian acquisition, preparations for the launch of the new subscription service and closely monitoring the administrative situation in Doro Care on the Swedish market. The current standstill with respect to SKL and the new framework agreement affects our profitability and to match second quarter 2015 results will be challenging, however full year forecast remains unchanged.
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/v7xtcp63 or by telephone at 14.00 CET on May 3, 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)170 750 712
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 1,838 million (EUR 200 million) were reported for 2015. 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 3 May, 2016 at 13:30 CET.
|