First quarter 2023 in summary

· Doro‘s net sales amounted to SEK 208.3 million (204.6), an increase with 1.8 percent.
· Gross margin was 35.8 percent (32.0).
· EBITDA amounted to SEK 15.2 (14.8), an increase of 2.7 procent.
· Operating profit (EBIT) amounted to SEK 3.2 million (3.0), corresponding to an operating margin of 1.5 percent (1.5).
· Profit after tax for the period was SEK 3.6 million (3.5) and earnings per share was SEK 0.15  (0.14 ).
· Free cashflow was SEK ‑14.9 million (‑14.2).

MESSAGE FROM THE CEO
Decent results in a challenging market 
During Q1 a number of indicators have turned in the right direction and Doro’s sales in the quarter increased by 1.8% compared to last year. The healthy sales was partly explained by our customers’ low inventory levels, caused by their extremely restrained ordering at the end of 2022. The first part was better from a sales point of view, but towards the end of the quarter, the sales softened. Overall, Doro came in slightly better than the same quarter last year, and our FraBel region did particularly well, bolstered by the launch of our latest smartphone at our biggest French mobile operator customer.
In general, our smartphones and 4G feature phones sold well in the quarter. The latter a clear testament to the accelerated technology shift in our markets, with the sunset of 2G and 3G technology closing in.
Traditionally 4G based feature phones are more complex and less user friendly for the senior segment, but Doro has made a tremendous effort in maintaining the simplicity for the users while upgrading the underlying technology to fulfil the complex requirements of modern mobile telephony.
During the quarter, we also continued implementing our new innovative sales initiatives, such as the roll-out of our Doro-dedicated shop corners, in several stores throughout Sweden and with more to follow in the other Nordic countries. The Doro corners ensures more visibility for the full Doro range, both for existing products already in place and for the innovation products that are coming. Similar concepts are now also being tried out in Ireland and Germany, with Doro-dedicated shelves in select stores.
In Great Britain we delivered the first orders from our own relaunched web shop. The Doro UK web shop was previously closed as a result of Brexit and Covid-19 pandemic but now once again provides us with flexibility and an excellent way to try out new sales concepts directly with end-customers. These activities have no doubt contributed to support sales and mitigate the shrinking senior feature phone market size, resulting in improved market shares for Doro in the quarter.
Despite the weak Swedish krona still negatively affecting the consumer electronics business, Doro managed to deliver a solid gross margin of 35.8% thanks to the positive development of our other cost of goods. Freight was by far the cost item that showed the best trend, with a strong decrease of shipping fees from Asia and a better sea to air transport ratio.
We also managed to decrease our inventory relative to Q1 2022, as the customary inventory build-up in Q1, driven by the Chinese New Year, was offset by good sell-out of older products.

Investing in the future
In line with the strategy to broaden our portfolio while still remaining leader in the elderly phone segment, not only are we investing in new products, but we also made several recruitments of key resources for the development and product management teams in the quarter.
In addition, the Management Team was further supported by a Chief Product Officer and Head of Commercial Development consultants, to optimise the implementation of our strategy from both a commercial, portfolio and marketing point of view.
In light of the challenging market conditions, and our current increasing investments in the future, we are satisfied to continue deliver positive operating profits of SEK 3.2 million (1.5% margin) in the quarter. I see our margin as a sign of strength for the business, although still lower than the levels we believe we should be able to reach.
With the new organisation coming into place and with the additional investments in both product development, and sales and marketing, we look forward to accelerating our portfolio broadening to reach more seniors with tailor made solutions that help them live better lives.

Jörgen Nilsson, President and CEO

A video conference call will be held on Friday, 28 April at 9.00 am (CEST) when President and CEO Jörgen Nilsson and CFO Isabelle Sengès will present the report. The videoconference is accessed at Quarterly report meeting (doro.com). The presentation material is available on Doro’s financial website Presentations (doro.com).

For more information, please contact:

Jörgen Nilsson, President & CEO, +46 731 01 28 01, ir@doro.com

About Doro

Doro is a leading technology brand for seniors developing consumer products and services to support an active and independent life. Doro’s technology enables generations to connect digitally – both while at home and when out and about. Doro is a Swedish company listed on Stockholm Nasdaq Stock Exchange. The company is headquartered in Malmö and has sales operations in 27 countries. In 2022, Doro had 110 employees and net sales amounted to SEK 909.5 million (EUR 86 million), making it the European market leader for senior specialised mobile phones. Read more about Doro on our website www.doro.com/

This information is information that Doro AB is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact persons set out above, at 2023-04-28 08:00 CEST.

Attachments

Doro 2023 Q1 Report Eng

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