Year-end report 2012Solid earnings in a tough economic climate
- The Board proposes raised dividendLund, 2013-02-13 07:30 CET --
Highlights of the fourth quarter, 2012:
• Net sales amounted to SEK 299.8 m (263.5), an increase of 13.8 percent.
• Operating profit (EBIT) totalled SEK 28.0 m (30.0). The operating margin was 9.3 percent (11.4).
• Profit after tax for the period amounted to SEK 18.6 m (19.2).
• Earnings per share after tax amounted to SEK 0.96 (0.99).
• Cash flow from current activities amounted to SEK 33.9 m (65.9).
• Order intake amounted to SEK 213.4 m (194.6), an increase of 9.7 percent.
Highlights of the full year, 2012:
• Net sales amounted to SEK 837.5 m (745.4), an increase of 12.4 percent.
• Operating profit (EBIT) totalled SEK 61.4 (62.0). The operating margin was 7.3 percent (8.3).
• Profit after tax for the year amounted to SEK 52.9 m (57.9).
• Earnings per share after tax amounted to SEK 2.73 (3.02)
• Cash flow from current activities amounted to SEK 40.2 m (104.9)
• The Board proposes a raised dividend of SEK 1.25 (1.0) per share
CEO Jérôme Arnaud: We met last year’s result in line with our outlook. 2013 sales have started well.
Despite a challenging consumer sentiment, we delivered a sales increase of 12.4 percent in 2012 – in line with our outlook for the year. Growth was strong in most of our markets, especially in the US, Canada and UK. We have reinforced our geographical footprint, broadened our product range and strengthened the Doro-brand. Doro’s overall market share in Western Europe senior mobile phone market increased during 2012 and we confirm our leadership being twice the size of the runner-up . The order backlog by the end of the year increased by 15 percent compared to last year and 2013 sales have started well.
The earnings for the quarter fulfilled our outlook and were in line with the same quarter 2011 in spite of the fact that we increased our spending within product development with more than 50 percent. Our margins held up well in our main markets with the exception of Germany, where we have seen lower margins in 2012 due to increased competition in the low price segment. We believe that during 2013, supported by a more locally adapted product range and other actions, margins will improve in Germany.
The ramp-up of investments in product development has resulted in a more competitive product mix, including our first smartphone and a renewed range of 3G feature phones - a product line that is unique in the marketplace. As we move into 2013, quite a few operators in our markets are about to close down their GSM networks (2G) in favour of 3G and 4G networks, giving us an edge with our range of 3G products. Our smartphone adapted for seniors was launched in the Nordics by the end of the forth quarter and is now listed at several leading distributors. After the end of the year, it was launched in Germany and we will continue our gradual rollout of this smartphone on all of Doro’s markets.
In 2013 we will expand within telecare and assisted living devices where we see an at-tractive opportunity. This segment, named Care, currently stands for some 10 percent of our sales but we have the prerequisites, with our existing high-value platform, to become a major player here. This is an area within general senior care where we foresee that specialized mobile solutions will take a substantial part of the market over the coming years. We have begun our efforts in the segment by, in November, signing a deal with Bosch Healthcare that will bring our telecare offer to the German and Swiss markets and progressively to the rest of Europe from the beginning of 2013.
We will from Q1 2013 report our activity according to our new main segments: Consumer and Care, along with regional sales. Our business unit Consumer aims at a senior target group in constant evolution on one hand, and the business unit Care aims at an elderly target group requesting assistance. This new reporting replaces the present segment reporting.
For full report, please view the enclosed pdf file.
For further information, please contact:
President & CEO, Jérôme Arnaud, +46 (0)46 280 50 05
CFO, Gunnar Modalen, +46 (0) 46 280 50 06
Doro AB discloses the information provided herein pursuant to the Securities Markets Act and/or the Financial Instruments Trading Act. The information was submitted for public release on Wednesday, February 13, 2013, at 07:30 a.m. CET.
About Doro
Doro, the leader in the telecom care market, is a Swedish public company. With over 38 years of experience in the telecom industry, the company focuses on developing, marketing and selling products, software, TeleCare and mHealth solutions specially adapted to the growing worldwide population of seniors. Doro’s range of easy-to-use mobile phones is unmatched and its unique know-how has been recognized through several international design awards. The company’s products are sold in more than 30 countries on five continents. In FY 2011 revenue totaled SEK 745 m. Doro’s shares are quoted on the Nasdaq OMX Stockholm exchange, Nordic list, Small companies. Read more about Doro at www.doro.com.
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