Lund, 2015-08-21 07:30 CEST (GLOBE NEWSWIRE) --
Strong growth and restored margins
Caretech’s service offering wins market share
April – June 2015
• Net sales amounted to SEK 425.8m (274.1), an increase of 55.3 percent.
• Net sales growth, excluding Caretech, was 37.0 percent.
• Operating profit (EBIT) was SEK 29.3m (11.9), corresponding to an operating margin of 6.9 percent (4.3).
• Order intake amounted to SEK 389.2 (296.2), an increase of 31.4 percent.
• Order book at the end of the period amounted to SEK 209.3m (82.4), an increase of 154.0 percent.
• Profit after tax for the period amounted to SEK 21.1m (9.4).
• Earnings per share after tax amounted to SEK 0.91 (0.45).
• Cash flow from current activities amounted to SEK 65.3m (47.0).
CEO comment
With good demand for both our hardware and service offerings and a recovered operating profit, I am pleased to report robust net sales growth of 55 percent, or 37 percent adjusted for Caretech, and an operating margin of 6.9 percent in the second quarter. A high level of activity and double digit growth in all regions resulted in a sales figure of SEK 425.8m. The DACH region increased by 39.5 percent y/y, driven by operator listings of Doro products as well as good demand in other channels through our subsidiary IVS. The Nordic region continued to perform well, now also driven by increased demand for our care services.
Our product portfolio is strong with an attractive product offering covering both low and high end market demands. We continue to refine the product portfolio, to fit additional market requirements and to increase our volumes, and this is clearly reflected in our sales development.
Operating profits recovered during the quarter especially compared to Q1, when results were impacted by heavy currency losses due to insufficient hedging. Higher volumes, price adjustments to compensate for the stronger US dollar, a higher share of sales related to services and lower expenses as proportion of sales all contributed to restoring the operating profit compared to the first quarter.
Caretech continues to develop well and we are ahead of our post-acquisition plan. In the Swedish market, where growth is triggered by the digitalization of municipalities’ social alarm systems, Caretech has made significant advances during 2015.The improved market position in Sweden, which during the quarter has been achieved through a number of new contracts with municipalities, forms together with an extended contract with SKL a good platform for further expansion in the Nordic region and internationally. The strong track record during the first half of 2015 shows that Caretech efficiently addresses the care market with a competitive customer offering.
As our footprint with large operators continues to expand, we have intensified our focus on working capital efficiency. Our cash flow from current activities has as a result of this, and in combination with the restored operating profit before depreciation of SEK 39.7, improved and stood at SEK 65.3m in the quarter.
During Q2 we restored our operating margin and our cash flow and we delivered strong growth. Order intake was SEK 389.2m in the quarter, representing an increase of 31.4 percent and adjusted for Caretech an increase of 17 percent. We reiterate our outlook for 2015: Sales and profits for the group are expected to increase with the main part generated in the second half of the year.
Jérôme Arnaud, President & CEO
For further information, please contact:
Jérôme Arnaud, President and CEO, +46 (0)46 280 50 05
Christian Lindholm, CFO, +46 (0)46 280 50 06
Doro AB discloses the information provided herein pursuant to the Securities Markets Act and/or the Financial Instruments Trading Act. The information was submitted for public release on Friday, August 21, 2015, at 07:30 CET.
About Doro
Doro AB is a Swedish public company formed in 1974. It released its pioneering ‘easy-to-use’ mobile phone in 2007 and today is the global market-leader within the category. Doro products and solutions are available in more than thirty countries spanning five continents. These include; mobile phones and smart devices, applications and software, fixed line telephony, telecare and mobile health solutions. Doro removes barriers to adoption of new technologies and holds numerous international awards in recognition of its product designs and innovations. Doro shares are quoted on the Nasdaq OMX Stockholm exchange, Nordic List, Small Companies. Net sales of SEK 1,277 million (EUR 135 million) were reported for 2014. www.doro.com
