Sweden, Lund, 2017-04-27 08:00 CEST (GLOBE NEWSWIRE) -- Good growth within Doro Care, sales and profitability strengthened
January – March 2017
- Net sales amounted to SEK 452.3m (413.0), an increase of 9.5 percent.
- Operating profit (EBIT) of SEK 17.3m (9.3), corresponding to an operating margin of 3.8 percent (2.3).
- Order intake amounted to SEK 424.6m (469.6), a decrease of 9.6 percent.
- Order book at the end of the period amounted to SEK 282.4m (246.2).
- Profit after tax for the period amounted to SEK 13.0m (5.8).
- Earnings per share amounted to SEK 0.56 (0.25).
- Free Cash Flow before acquisitions amounted to SEK 26.5m (‑46.0).
Outlook
Unchanged outlook: Our expectation for 2017 is that both sales and EBIT will increase compared to 2016.
CEO’s comment
I’m pleased to be able to say that Doro’s sales and earnings are now heading in the right direction again. Sales increased by 9.5 percent in the quarter to SEK 452.3m (413.0), and gross margin expanded to 38.4 percent (34.4). We generated a strong cash flow, and were able to reduce net debt in the quarter. Order intake decreased by 9.6 percent compared to the first quarter 2016, but this should be viewed against us securing the highest order intake in Doro’s history in the fourth quarter 2016.
Doro Care, which we are reporting separately as an independent region effective this quarter, increased sales by 91.6 percent (40.7 percent excluding Trygghetssentralen). Our new framework agreement with local government procurement organisation SKL Kommentus Inköpscentral is one important explanation, although the acquisition of Trygghetssentralen, completed in the second quarter 2016, and a high export share to Germany and the UK in the current quarter, are other explanations. The work commenced in 2016 to improve efficiency and cost control has also started to pay off, but we still see potential in structuring and streamlining operations further.
For some time, we have noted sales declining in the US/Canada region, which is a result of our current product offering and a concentrated customer base. This situation is unsatisfactory. We are working on executing an action plan. We’re confident, but do not expect results quickly.
Some time ago, we started a collaboration with Sigma in Lund, Sweden. By outsourcing product development to an external partner, we achieve far greater flexibility, cost-efficiency and speed in product development. In addition to this step, we are also executing actions to improve control and monitoring of product development.
We were present at the Mobile World Congress in Barcelona in late-February, where we met a lot of customers, collaborative partners and demonstrated our offerings in Doro Care, as well as product news, including the smart phone segment. Our company and offering in the senior segment are gaining an excellent reception. In the quarter, Orange, one of our most important customers, gave us its Orange Device Partner Award for Outstanding Excellence in Smart Mobile Design for Seniors. We also received the Red Dot Award for the Doro 6050 clam shell feature phone.
Doro has a very well established brand with a good reputation on its home market of the Nordics, which means our growth there remains strong. When I started at Doro, I initiated an overhaul of our whole international presence. I see potential for greater penetration on several markets, Italy and Spain for example. Simultaneously, I am not averse to reprioritising. Our presence on certain markets should, perhaps, be managed differently from before.
The response Doro receives from distributors and collaborative partners is convincing, our positioning in the senior segment is strong and I see a wealth of exciting opportunities to evolve and advance it further.
Robert Puskaric, President & CEO
For further information, please contact:
Robert Puskaric, President and CEO, +46 (0)46 280 50 05
Magnus Eriksson, CFO, +46 (0)46 280 50 06
Doro’s report to be presented via audiocast
Analysts, investors and the media are welcome to attend a presentation via http://edge.media-server.com/m/p/vrm7ph7q or by telephone at 09:00 CET on April 27, 2017. Doro’s President and CEO Robert Puskaric and Doro’s CFO Magnus Eriksson will hold the presentation and answer questions. Before the start of the presentation, the material will be made available at http://corporate.doro.com/blog/hp-doro-webcast.
Call-in details
Sverige: + 46 (0) 8 505 564 74
Frankrike: + 33 (0) 170 750 712
Storbritannien: + 44 (0) 203 364 5374
USA: + 1 855 7532 230
About Doro
Doro develops telecom products and services for Seniors to lead full and rich lives: to do things they want to do more easily as well as the things they thought they might never do. The global marketleader in senior mobile phone, Doro offers easy-to-use mobile phones and smart phones, mobile applications, fixed line telephony with loud and clear sound. Within Doro Group, Doro Care offers social care and telecare solutions for elder and disabled persons for independent and safe living in their own homes. Doro AB is a Swedish public company and its shares are quoted on the Nasdaq OMX Stockholm exchange, Nordic List, Small Companies. Net sales of SEK 1,959 million (EUR 205 million) was reported for 2016.
This information is information that Doro AB (publ) 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 08:00 CET on April 27, 2017.
