DORO AB Increased sales and improved underlying result
October –
- Net sales were
SEK 615.8 million (554.1), an increase of 11.1 percent. - Net sales for the category Services were
SEK 106.8 million (86.2), an increase of 23.9 percent. Net sales for the category Products wereSEK 509.0 million (467.9), an increase of 8.8 percent. - Gross margin decreased to 29.5 percent (32.6). For Services, the gross margin was 44.8 percent (49.8) and for Products the gross margin was 26.3 percent (29.4).
- Operating profit (EBIT) amounted to
SEK 41.5 million , excluding restructuring costs and write-downs ofSEK 10.6 million , corresponding to an operating margin of 6.7 percent. Including restructuring costs and write-downs, EBIT amounted toSEK 30.9 million (38.0) with an operating margin of 5.0 percent (6.9).
- Profit after tax for the period was
SEK 20.8 million (25.6). - Profit per share was
SEK 0.87 (1.08). - Free cash flow before acquisitions was
SEK 58.7 million (36.1).
January –
- Net sales were
SEK 2,063.0 million (1,906.4), an increase of 8.2 percent. - Net sales for the category Services were
SEK 374.5 million (285.4), an increase of 31.2 percent. Net sales for the category Products wereSEK 1,688.5 million (1,621.0), an increase of 4.2 percent. - Gross margin decreased to 31.5 percent (33.4). For Services, the gross margin was 45.2 percent (47.4) and for Products the gross margin was 28.5 percent (31.0).
- Operating profit (EBIT) was
SEK 131.4 million , excluding restructuring costs and write-downs ofSEK 19.3 million , corresponding to an operating margin of 6.4 percent. Including restructuring costs and write-downs, EBIT amounted toSEK 112.1 million (122.3) with an operating margin of 5.4 percent (6.4). - Profit after tax for the period was
SEK 77.9 million (91.5). - Profit per share was
SEK 3.28 (3.86). - Free cash flow before acquisitions was
SEK 118.7 million (122.5).
Message from the CEO
The fourth quarter continued in a positive fashion in many areas, just as in previous quarters. We have experienced good sales growth, during both the quarter and the year as a whole, and we have achieved a profit which exceeds that of the previous year, adjusted for non-recurring items.
There was stable growth in the Services category, mainly as a result of the acquisition of Centra Pulse and Connect. Centra has a slightly lower level of profitability, which had a negative impact on the gross margin in the Service business. We are working to develop a more efficient organisation in the long term to strengthen the gross margin. We are already seeing some improvement compared with the third quarter and I can generally report a good quarter for Services.
Products developed well, both during the quarter and over the year as a whole, with growth on most markets, despite competition remaining tough. As a result, we have increased our market share and consolidated our position as market leader in mobile phones for seniors. I believe we have a strong offering and a great understanding of the needs of our customers and consumers.
The gross margin decreased during the quarter primarily as a result of currency effects and increased logistics costs. To meet customer demand for our products, we have had to use a higher proportion of air freight than anticipated, which has driven costs.
Our own experience and research both show that technology enabled care helps to strengthen the independence of those receiving care, while at the same time improving the work environment and resource-efficiency of service providers. Technology enabled care meets the need to provide a safe, active and meaningful everyday life for more seniors, while also overcoming the challenges facing society in terms of increased costs and a shortage of healthcare professionals. The national guidelines for Sweden’s municipalities, where personal night-time monitoring has been replaced with digital services such as Doro Visit, are a good example.
This development provides the focus for our expansion and growth within our Care offering, with the aim of becoming Europe’s leading provider of technology enabled care. Together with the municipalities and regions, we will drive forward digitalisation and development.
Focusing more strongly on developing products and services for the public sector means writing off parts of the Smartcare project linked to a specific consumer offering.
To help us build an even stronger Doro, we will utilise the strength of the entire group in order to maintain a good level of income, make maximum use of our innovative strength, keep a continued focus on efficiency and, not least, ensure that we exercise leadership at all times that enables a high rate of change. 2020 will be an exciting year, as we continue to strengthen in technology enabled care to take Doro to the next level.
Doro’s report is presented via a webcast
A webcast conference call will be held on Thursday 13 February at
Telephone numbers:
© Modular Finance, source
