Positive sales and profitabillity growth in the quarter

The quarter in summary

  • Doro’s net sales amounted to SEK 406.9 million (332.3), an increase of 22.4 percent.
  • Net sales for business area Doro Care were SEK 146.6 million (124.9), an increase of 17.4 percent and for business area Doro Phones were SEK 260.3 million (207.4), an increase of 25.5 percent.
  • Gross margin increased to 37.4 percent (34.8). For Doro Care, the gross margin decreased to 41.4 percent (44.9) and for Doro Phones the gross margin increased to 35.2 percent (28.8).
  • EBITDA amounted to SEK 51.6 million (38.0), an increase of 35.8 percent.
  • Operating profit (EBIT) amounted to SEK 30.8 million (7.8), excluding restructuring costs and costs for the listing of business area Doro Care of SEK 9.3 million, corresponding to an operating margin of 7.6 percent (2.3). Including restructuring costs and costs for the listing, EBIT amounted to SEK 21.5 million (7.8) with an operating margin of 5.3 percent (2.3).
  • Profit after tax for the period was SEK 12.9 million (-3.3) and profit per share was SEK 0.54 (-0.14).
  • Free cash flow before acquisitions was SEK 4.9 million (29.3).

January - June in summary

  • Doro’s net sales amounted to SEK 743.6 million (756.5), a decrease of 1.7 percent.
  • Net sales for business area Doro Care were SEK 284.6 million (255.2), an increase of 11.5 percent and for business area Doro Phones were SEK 459.0 million (501.3), a decrease of 8.4 percent.
  • Gross margin increased to 37.6 percent (34.2). For Doro Care, the gross margin decreased to 41.5 percent (42.8) and for Doro Phones the gross margin increased to 35.1 percent (29.8).
  • EBITDA amounted to SEK 99.5 million (81.7), an increase of 21.8 percent.
  • Operating profit (EBIT) amounted to SEK 49.2 million (23.0), excluding restructuring costs and costs for the listing of business area Doro Care of SEK 10.3 million, corresponding to an operating margin of 6.6 percent (3.0). Including restructuring costs and costs for the listing, EBIT amounted to SEK 38.9 million (23.0) with an operating margin of 5.2 percent (3.0).
  • Profit after tax for the period was SEK 31.7 million (11.3) and profit per share was SEK 1.32 (0.47).
  • Free cash flow before acquisitions was SEK -42.7 million (7.3).

Message from the CEO

The second quarter continued to be defined by an increased activity in our markets as restrictions eased. We have delivered good organic growth in both business areas, where Doro Care has gained new market shares in Sweden and Doro Phones had a strong quarter in several of its markets. During the quarter, we managed to limit the effects of the component shortage and higher prices, although the challenges to some extent made us prioritise our business. We expect a continued increase in activity in the coming quarters, while there is an uncertainty in how sales will be affected by the current component shortages and extended lead times.

At the end of the last quarter, we initiated the last part of our restructuring program and during the quarter we continued to work with the restructuring of Germany. We have, since the restructuring was announced, successfully reduced our operating costs in order to ensure long-term profitability. In the coming quarters, we will complete the last activities in the program, and we will achieve the communicated savings of 110–130 million SEK compared with 2019 levels. In addition to an improved cost base, the restructuring has created opportunities for us to work with greater focus and increased competitiveness.

Preparations to separate the business into two listed companies are in full progress with the goal of being able to carry out the listing during the fourth quarter of 2021. The work is proceeding according to plan, and we have confidence in being able to complete the listings this year. The separation aims to increase long-term shareholder value, by enabling the businesses to realise their strategies more favorably, with better conditions and greater focus on the individual business area.

Doro Phones will continue to manifest its position as market leader for senior phones in Europe. With Doros long experience in the market, strong customer relations and deep senior knowledge, we want to continue to make technology available to seniors. We will also by broadening our offering to new product areas, develop the business area and provide support to both today's and tomorrow's seniors.

The ambition to become European market leader in technology enabled care will continue to be the goal for Doro Care. New preventive solutions are necessary to handle a growing elderly population and we want to drive the digitalisation of the market forward. By developing our own welfare technology platform, we can offer more proactive solutions that makes this possible. Our main focus will still be to grow organically, streamline the operation and develop new technical solutions. In combination with this, we are continuously working on new acquisition opportunities as part of our strategy, on the way to become a market leader in Europe.

With joint efforts we delivered an improved operating profit adjusted for restructuring costs and costs for the listing of business area Doro Care of SEK 30.8 million (7.8) in the quarter, an improvement of 295 percent compared to the same quarter last year and an improvement compared to last quarter. We work hard to focus the business and drive organic growth in business area Doro Care, as we are still not in line with our ambition regarding sales, although the quarter was a step in the right direction. As more people are vaccinated and restrictions ease, we are confident about the future and hope to leave the pandemic behind us. I am proud with how we handled the challenges of COVID-19 and the strong commitment and drive our employees have shown since the start of the pandemic. We have, during its entirety, continued to deliver high-quality services and managed to maintain a stable profitability. Now we look forward to a continued exciting and eventful journey for Doro.

WEBCAST

A webcast conference call will be held on Friday 16 June at 9.00 am (CEST) when President and CEO Carl-Johan Zetterberg Boudrie will present the report. The webcast is accessed at https://tv.streamfabriken.com/doro-q2-2021. The presentation material is available on Doro’s financial website http://www.doro.com/corporate.

Telephone numbers:
Sweden: +46 8 56 64 27 05
United Kingdom: +44 33 33 00 92 73
USA: +1 64 67 22 49 02
France: +33 170 75 07 20

For more information, please contact:

Carl-Johan Zetterberg Boudrie, President & CEO, +46 (0) 70 335 84 49, ir@doro.com

About Doro

Doro is a technology company focused on seniors. We develop services and products for seniors to live independent, fulfilling lives. Our wide portfolio of security and care solutions digitally connect generations and provide solutions for independent living, both inside and outside the home. Doro is the market leader in social alarms in Sweden, Norway and the United Kingdom and the global market leader in mobile phones for seniors. Doro is a Swedish company with headquarters in Malmö and a sales operation in 27 countries. Doro’s shares are quoted on the Nasdaq Stockholm. The company has approximately 1 080 employees and net sales of SEK 1,689 million (EUR 168.0 million) were reported for 2020. Read more about Doro on our website www.doro.com/corporate

This information is information that Doro AB is obliged to make public pursuant to the EU Market Abuse Regulation and the Securities Markets Act. The information was submitted for publication, through the agency of the contact persons set out above, at 2021-07-16 08:00 CEST.

Attachments

Q2 2021 Eng

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