StrongPoint: Fourth quarter and year end 2023 financial results

12.2.2024 07:00:01 CET | StrongPoint | Half yearly financial reports and audit
reports / limited reviews

(Oslo, 12 February 2024) StrongPoint ASA reported revenues of NOK 331 million in
the fourth quarter of 2023, NOK 74 million lower than same quarter in 2022
(405). The EBITDA was NOK - 20.6 million (33.6).

"As we close the fourth quarter of 2023, the challenges and uncertainties that
have characterized much of this year have persisted and continue to impact our
performance. Similar to the previous quarters, the prevailing economic
uncertainty, coupled with high inflation and interest rates, remains at the
forefront of market dynamics. This has led to a cautious approach from our
primary customers, grocery retailers, resulting in further delays and pauses in
their investment decisions. To navigate these challenging times, we announced
rigorous cost reduction measures following our third quarter, which began to
take effect from January 2024. An effect of this reduction in workforce is that
the fourth quarter is impacted by restructuring costs equating to 6.7 MNOK in
the quarter," says Jacob Tveraabak, Chief Executive Officer of StrongPoint.

StrongPoint reported revenues of NOK 331 million (405) in the fourth quarter of
2023 and an EBITDA of NOK -20.6 million (33.6), including non-recurring
restructuring and M&A costs of NOK 7.3 million and write-downs NOK 10.6 million.
Excluding these adjustments, the EBITDA was NOK -2.7 million. The fourth quarter
EBIT was NOK -31.0 million and EBT was NOK -38.4 million. Cash flow from
operating activities was NOK 33.7 million (38.1).

For the full year 2023, revenue was NOK 1,342 million (1,372), EBITDA ended at
-1.3 MNOK (75.5). Excluding the full-year non-recurring items, the EBITDA was
MNOK 19.6. The full year EBIT was NOK -39.4 million and EBT was NOK -45.3
million. Cash flow from operating activities was NOK 25.2 million (16.6).

"Despite a major breakthrough at the beginning of 2024, the general economic
climate and uncertainty leads us to be questionable about achieving the
financial ambitions set forth for 2025. More than a reset of ambitions, we
recognize that achieving the ambitions will take more time than we anticipated
when we set them in early 2020, prior to the pandemic, war in Europe and the
interest rate regime we now experience. As part of our annual Strategy Update
Session this Spring, we plan to share our updated financial ambitions,"
Tveraabak continues.

"Looking ahead, we are still cautiously optimistic about the future. We are
beginning to see signs of renewed interest and potential uplift in investment
decisions from grocery retailers. Our groundbreaking projects, like the cash
management system in Iberia and the promising developments in the UK market, are
set to play a pivotal role in our future growth. We continue to focus on
providing grocery retailers with retail technologies that enhance profitability
and customer satisfaction. With these ongoing major projects and our dedicated
focus, we are well positioned to capitalize on the long-term trend of increasing
technology penetration in the grocery retail sector," Tveraabak concludes.

A link to a video presentation of the fourth quarter results is available,
together with the report. There will be a live Q&A session via webcast at 10:30
CET.

The webcasts and video presentations will be available at 
https://www.strongpoint.com/investor/webcasts/

*EBITDA and other alternative performance measures (APMs) are defined and
reconciled to the IFRS financial statements as a part of the APM section of the
fourth quarter 2023 financial report on page 25.

DISCLOSURE REGULATION

This information is subject to the disclosure requirements pursuant to Section
5-12 the Norwegian Securities Trading Act.

CONTACTS

 * Marius Drefvelin, CFO StrongPoint ASA, [phone],
   [e-mail] 

ABOUT STRONGPOINT

StrongPoint is a grocery retail technology company that provides solutions to
make shops smarter, shopping experiences better and online grocery shopping more
efficient. With over 500 employees in Norway, Sweden, the Baltics, Finland,
Spain, the UK and Ireland and together with a wide partner network, StrongPoint
supports grocery and retail businesses in more than 20 countries. StrongPoint
provides in-store cash management and payment solutions, electronic shelf
labels, self-checkouts, task and labor management software, click & collect
temperature-controlled grocery lockers, in-store and drive-thru grocery pickup
solutions and grocery order picking solutions, both manual and automated.
StrongPoint is headquartered in Norway and is listed on the Oslo Stock Exchange
with a revenue of approx 1.4bn NOK [ticker: STRO].

ATTACHMENTS

Download announcement as PDF.pdf -
https://kommunikasjon.ntb.no/ir-files/17847450/2908/4065/Download%20announcement
%20as%20PDF.pdf

StrongPoint Q4 2023.pdf -
https://kommunikasjon.ntb.no/ir-files/17847450/2908/4059/StrongPoint%20Q4%202023
.pdf

StrongPoint Q4 2023 print.pdf -
https://kommunikasjon.ntb.no/ir-files/17847450/2908/4060/StrongPoint%20Q4%202023
%20print.pdf

StrongPoint Q4 2023 Presentation.pdf -
https://kommunikasjon.ntb.no/ir-files/17847450/2908/4064/StrongPoint%20Q4%202023
%20Presentation.pdf

Click here for more information

© Oslo Bors ASA, source Oslo Stock Exchange