Interim report January-June 2013Lund, 2013-08-21 07:30 CEST --
Exceptional organic revenue growth in the quarter – acquisitions further strengthens growth
Highlights of the second quarter, 2013:
• Net sales amounted to SEK 273.0 m (156.5), an increase of 74 percent. Adjusted for acquisitions andcurrency effects, growth amounted to 73 percent compared to previous year.
• Operating profit (EBIT) totalled SEK 17.5 m (4.6). EBIT margin improved to 6.4 percent (2.9). Operating profit excluding one time acquisition costs totalled SEK 23.5 m.
• Profit after tax for the period amounted to SEK 12.2 m (6.0).
• Earnings per share after tax amounted to SEK 0.63 (0.31).
• Cash flow from current activities amounted to SEK 40.5 m (26.0).
• Order intake amounted to SEK 249.9 m (206.9), an increase of 21 percent.
• Doro acquired its German distributor IVS Industrievertretung Schweiger GmbH “IVS”.
• Full-year outlook for 2013 remains.
CEO Jérôme Arnaud: Strong sales momentum in all regions
The second quarter was exceptional in many aspects for Doro. Our strong order intake in the first quarter was transformed into even stronger revenue growth in the second quarter. We have an exciting momentum with market gains in all regions. The organic growth in the quarter, excluding the acquisition of our German partner IVS and currency adjusted, amounted to 73 percent. On a rolling twelve months pro forma basis, including acquisition of IVS, we are now close to SEK 1.2 billion in sales.
Our increased profitability trend continues, and our EBIT margin for the quarter improved, despite continued investments in product development and one time transaction costs related to acquisitions. The result has also been improved by lower cost of technology. Even though profit growth is not on par with growth of sales, economies of scale will gradually improve our margin.
Our success in US & Canada continued with quadrupled sales compared to the corre-sponding quarter last year, as we have renewed our offering of feature phones range. I am also very pleased to point out that the Nordic region, where our market position is the strongest, continues to show both solid growth and profitability. The same goes for EMEA and UK – regions where we gradually strengthen our partnerships and increase our market share.
In mid-May, we announced the acquisition of our German partner IVS – giving us the number one position of senior mobile phones in Germany for the first six month of 2013. The deal opens up new market channels, with better access to other German speaking markets. Through IVS, we are, with launches already in the third quarter, also widening our product range with mobile phones more suitable for countries where price competition is stronger.
In July, we also acquired our French software design partner Isidor, strengthening our ability to swiftly introduce new products, especially smartphones. As previously an-nounced, Doro’s second smartphone is due to be launched in the third quarter.
Our business unit Care is still in an early stage that not yet adequately provides basis for separate financial reporting, but it remains a strategic growth opportunity for us over the years to come.
As we now move into the second half of the year, the exceptional organic growth of the second quarter will be a challenge to repeat. However, we still have a strong organic growth momentum and the integration of both IVS and Isidor are well underway. As a consequence Doro is well positioned to continue it´s growth track - capturing opportu-nities in the Silver Economy.
For further information, please contact:
President & CEO, Jérôme Arnaud, +46 (0)46 280 50 05
Interim CFO, Bernt Ingman, +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, August 21, 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
|