Year-end report 2013Lund, 2014-02-14 07:30 CET --
Stable margins and improved cash flow ends a year of strong growth
Highlights of the fourth quarter, 2013:
• Order intake increased to SEK 316.3 m (213.4), an increase of 48 percent. Adjusted for acquisitions the increase was 6 percent.
• Net sales amounted to SEK 381.2 m (299.8), an increase of 27 percent. Adjusted for acquisitions and exchange rates effects the growth was 2 percent compared to previous year.
• Operating profit (EBIT) increased to SEK 33.5 m (28.0). EBIT margin was 8.8 percent (9.3).
• Profit after tax for the period amounted to SEK 26.2 m (18.6).
• Earnings per share after tax amounted to SEK 1.26 (0.96).
• Cash flow from current activities amounted to SEK 71.0 m (33.9).
• Outlook 2014; Doro’s growth is expected to continue. No detailed forecast for 2014 is given.
Highlights of the full year, 2013:
• Order intake increased to SEK 1,183.6 m (805.8), an increase of 46.8 percent. Adjusted for acquisitions the increase was 24.7 percent.
• Net sales amounted to SEK 1,142.5 m (837.5), an increase of 36.4 percent. Adjusted for acquisition the increase was 19.5 percent.
• Operating profit (EBIT) totalled SEK 78.9 (61.4). The operating margin was 6.9 percent (7.3).
• Profit after tax for the year amounted to SEK 60.6 m (52.9).
• Earnings per share after tax amounted to SEK 3.07 (2.73).
• Cash flow from current activities amounted to SEK 110.5 m (40.2).
• The Board proposes a dividend of SEK 1,50 (1.25) per share.
CEO Jérôme Arnaud:
A year of organic growth and successful acquisitions
2013 was an exciting and eventful year for Doro. We started the year with exceptional organic growth and furthermore improved our position by adding some great acquisi-tions to the Group a few months later – thereby even further increasing our leadership position on the European mobile phone market for seniors. We also strengthened both our internal resources and our distribution network during the year, and ended 2013 with reassuring cash flow and margins.
Our full year growth climbed to 36 percent, out of which 19.5 percent was organic growth, giving us a proforma turnover of approximately 1.25 billion SEK. Our German acquisition IVS has quarter for quarter added strongly to our overall growth and market leading position in Germany.
Fluctuation in sales and order intake growth between quarters and regions will always be a fact in our business and our organic growth in the fourth quarter was more modest. In the Nordic region, we are in a generation transition where our offering of smart devices is set to overtake more of the sales of our traditional feature phones. Our introduction of smart devices – for example the newly launched Doro Liberto® 810 – to the market is crucial as it adds both competitiveness and supports gross margin.
In the fourth quarter, Doro’s operating result touched top historical levels with an EBITDA margin of 11.8 percent, attributable to a good product mix and results from economies of scale on our operating expenditures.
To summarize 2013, it makes me proud that we managed to grow organically and si-multaneously carry out and integrate acquisitions in an excellent way. It gives us confi-dence in our ability to further reinforce the Doro platform through acquisitions in a sound way going forward.
Although last year’s strong first quarter will be hard to match, we enter 2014 with a solid base for further growth as well as new strategic acquisitions. We have an efficient oper-ating model, which is verified by continuous strong cash flow, and our financial position remains strong, despite the acquisitions made during the past year. Important for sales growth is the development of smartphone sales, which is expected to gain momentum during the second half of the year.
To further improve the organizational setup, and accelerate our ability to adjust for on-going shifts on the market, we have focused our organization into three distinct areas: Smart Devices, Feature phones and Care/Other products. The development of the Smart Devices category is our main priority at the moment and increases our R&D in-vestments. Our model Doro Liberto® 810 has been listed now in various countries and with some operators like Telia, Sonera, TDC, Telenor, O2 and Telenet.
The fundamentals in our market niche of communication electronics for seniors are continuously favourable, with a clear demographic shift acting as the driver of the Silver Economy. We also see an increased demand for easy-to-use smart devices, adapted to seniors level of comfort, as technology is evolving at a faster pace than it can penetrate the above 65 population.
For further information, please contact:
President & CEO, Jérôme Arnaud, +46 (0)46 280 50 05
CFO, Christian Lindholm, +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 Friday, February14, 2014, 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
|