Improved operating profit despite a challenging quarter
The quarter in summary
- Doro’s net sales amounted to
SEK 489.6 million (615.8), a decrease of 20.5 percent. - Net sales for business area
Doro Care wereSEK 144.7 million (130.6), an increase of 10.8 percent and for business area Doro Phones wereSEK 344.9 million (485.2), a decrease of 28.9 percent. - Gross margin increased to 34.3 percent (29.5). For
Doro Care , the gross margin decreased to 39.5 percent (42.8) and for Doro Phones the gross margin increased to 32.0 percent (25.9). - EBITDA amounted to
SEK 69.0 million (61.1), an increase of 13.0 percent. - Operating profit (EBIT) amounted to
SEK 46.9 million (41.5), excluding restructuring costs ofSEK 9.2 million , corresponding to an operating margin of 9.6 percent (6.7). Including restructuring costs, EBIT amounted toSEK 37.7 million (30.9) with an operating margin of 7.7 percent (5.0). - Profit after tax for the period was
SEK 19.2 million (20.8) and profit per share wasSEK 0.80 (0.88). - Free cash flow before acquisitions was
SEK 27.9 million (58.7).
January – December in summary
- Doro’s net sales amounted to
SEK 1,689.3 million (2,063.0), a decrease of 18.1 percent. - Net sales for business area
Doro Care wereSEK 524.1 million (476.7), an increase of 9.9 percent and for business area Doro Phones wereSEK 1,165.2 million (1,586.3), a decrease of 26.5 percent. - Gross margin increased to 33.7 percent (31.5). For
Doro Care , the gross margin decreased to 41.4 percent (42.1) and for Doro Phones the gross margin increased to 30.3 percent (28.3). - EBITDA amounted to
SEK 203.9 million (209.3), a decrease of 2.6 percent. - Operating profit (EBIT) amounted to
SEK 101.6 million (131.4), excluding restructuring costs ofSEK 15.9 million (19.3), corresponding to an operating margin of 6.0 percent (6.4). Including restructuring costs, EBIT amounted toSEK 85.7 million (112.1) with an operating margin of 5.1 percent (5.4). - Profit after tax for the period was
SEK 49.1 million (77.9) and profit per share wasSEK 2.06 (3.28). - Free cash flow before acquisitions was
SEK 180.4 million (118.7). - The rapid spread of the COVID-19 virus had a negative effect on sales in the period due to closed markets, which predominately affected business area Doro Phones. A gradual recovery occurred in the end of the second quarter and in the third quarter, but sales were again negatively impacted at the end of the fourth quarter due to COVID-19's second wave.
Message from the CEO
2020 has undoubtedly been a different year, strongly affected by the pandemic. The challenges that exist in social and elderly care has become increasingly clear and our offering in technology enabled care is and will be a part of the solution. Despite all the challenges that COVID-19 has brought us, we have managed to maintain our service delivery and continued to deliver the same quality in both our alarm receiving centres and in our field service throughout the year. This shows the flexibility that exists in the organisation and that, regardless of circumstances, we continue to deliver what we do best - safety and independence for seniors.
During the fourth quarter we were hit by the second wave of COVID-19 and some of our main markets were once again completely or partially in lockdown. The consequence of this was that the recovery that was noted during the third quarter slowed down. Sales during the fourth quarter amounted to
The markets within business area
Earlier in the year, we took several steps forward in our growth strategy, which we also continued to do during the fourth quarter. In October we completed our third acquisition of the year and acquired the assets of the Careline services from
Business area Doro Phones had a tough quarter in terms of sales with a decrease of 28.9 percent compared to the fourth quarter of 2019. Sales were negatively affected by closed markets due to the second wave of the pandemic, but also by the decision to phase out less profitable markets, such as
To create the best conditions for each business area to develop more favorably on their own and reach its full potential, preparation will be initiated to separately list business area
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