Correction: Interim report January-March 2013Lund, 2013-05-14 08:59 CEST --
Highlights of the first quarter, 2013:
• Net sales amounted to SEK 208.9 m (170.4), an increase of 22.6 percent.
• Operating profit (EBIT) totalled SEK 7.7 m (12.6). The operating margin was 3.7 percent (7.4).
• Profit after tax for the period amounted to SEK 7.4 m (2.5).
• Earnings per share after tax amounted to SEK 0.38 (0.13).
• Cash flow from current activities amounted to SEK 18.3 m (-32.9).
• Order intake amounted to SEK 252.2 m (143.6), an increase of 75.6 percent.
• Outlook full year 2013: For 2013 it is expected that both sales growth and operating result (EBIT) will increase compared to last year despite pressure on gross margin. This outlook ex-cludes the effects of the announced acquisition of IVS, which is expected to contribute posi-tively to Doro’s earning per share in 2013.
CEO Jérôme Arnaud: Order growth of 75 percent and market-leading position in Germany secured by acquistion
The year has started off in a reassuring way. Our sales increased by 22.6 percent in the first quarter compared to the corresponding period last year. Adjusted for currency fluc-tuations, our sales rose by 27.1 percent. The growth was primarily driven by an acceler-ating demand in the US, Canada and UK. Our order intake was up 75 percent year on year, giving us support for continuous growth through the second quarter. Even April has started in a strong way.
Our net profit in the quarter improved year on year while our EBITDA-earnings weakened somewhat and totalled SEK 14.2 million (17.5). This deviation is mainly due to positive currency effects of SEK 8.7 million in the corresponding quarter last year, whereas the first quarter this year was currency neutral. We have also further increased our efforts and investments within product development and marketing compared to previous year. These investments will continue going forward. However, less cost regarding technology and production will have a partial compensating effect on our gross margin during 2013.
Today, I am proud to announce the acquisition of IVS - our German distributor since six years. IVS is the market-leader in the German mobile phone market for seniors. We know their team, culture and strengths well and we are delighted to welcome them into Doro. IVS has achieved good growth for us over the years, and we are confident that we together can push the Doro brand, sales and profitability even better by fully join forces.
With our strong market presence - we have for some time actively been seeking the best strategic move to strengthen our market position in Germany and achieve the same market leadership as we have in other markets and more tactically cover the low price segment. By the addition of IVS we will have a market share of approximately 33 percent in the German senior mobiles retail market. This gives us an excellent position with coverage also into new channels, such as web beside retail where IVS has a really good track record. Combined with our relations with operators it is all in all a very good mix indeed going forward. Furthermore, IVS will enable us to grow faster into the other German speaking markets and to the expanding Eastern European markets.
IVS is a profitable company and I am confident that we will see a good contribution to the Doro earnings per share already this year. With IVS sales of € 33 million in 2012, Doro 2012 proforma revenues amounts to SEK 1 050 m. By furthermore achieving better economical scale our overall efforts to optimize margins will improve. We are the undisputable leader in senior mobiles, ready to move into new channels and segments over the years to come. This makes me excited about our opportunities.
As per last quarterly report we planned to report our activities according to our new main segments: Consumer and Care. This reporting is now expected to be implemented later this year, along with regional sales, as our sales in business unit Care still is in an early stage and does not adequately provides basis for full monitoring as per date. The Care segment is a strategic growth area for us over the years to come.
Looking at product portfolio momentum, we see continued success in the quarter with the performance of Doro PhoneEasy 612® and Doro PhoneEasy 618® - especially in US, Canada and UK. Our first smartphone has now been launched in the Nordics and a few other markets as previously stated. Overall, the demand for smartphones among seniors is growing rapidly. Consequently, our efforts of developing smartphones have increased and we have an exciting pipeline. At the industry’s leading fair, the Mobile World Congress (MWC) in February, we announced the coming release of our next smartphone, which is planned to be launched in the third quarter 2013.
While the macroeconomics and consumer sentiment remain uncertain, the long-term fundamentals in our niche of addressing seniors remain attractive. We are well positioned to continue our growth track, capturing opportunities in the Silver Economy.
For further information, please contact:
President & CEO, Jérôme Arnaud, +46 (0)46 280 50 05
CFO, Håkan Tjärnemo, +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
Tuesday, May 14, 2013, at 07:30 a.m. CET.
About Doro
Doro AB is a Swedish public company formed in 1974. It released its pioneering ‘easy-to-use’ mobile phone in 2007 and today is the global market-leader within the category. Doro products and solutions are available in thirty countries spanning five continents. These include; mobile phones and smart devices, applications and software, fixed line telephony, telecare and mobile health solutions. Doro removes barriers to adoption of new technologies and holds numerous international awards in recognition of its product designs and innovations. Doro shares are quoted on the Nasdaq OMX Stockholm exchange, Nordic List, Small Companies. Revenues of SEK 837.5 million were reported for 2012. www.doro.com
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