Growth in all markets and improved margins
July – September 2014
• Net sales amounted to SEK 330.3m (279.4), an increase of 18.2 percent.
• Order intake amounted to SEK 423.7m (365.2), an increaseof 16.0 percent.
• Operating profit (EBIT) totaled SEK 29.3m (20.3). The operating margin was 8.9 percent (7.3).
• Profit after tax for the period amounted to SEK 24.4m (15.0).
• Earnings per share after tax amounted to SEK 1.15 (0.77).
• Cash flow from current activities amounted to SEK 14.1m (-19.3).
I am pleased to report positive sales and order growth in all markets this quarter, as well as clear improvements in group profitability and cash flow. The sales improvement is primarily an effect of newly launched products, start-up of new partnerships and more favourable currencies.
Our gross margin improved significantly compared with the third quarter last year, which is partly an effect of regained growth in the Nordic region at higher gross margins.
An important reason for our sales growth in the quarter is the previously announced listings with Telekom Deutschland and Vodafone. This has significantly strengthened Doro’s position on the German market. In German retail we are now three times bigger than our closest competitor. The product synergies extracted from our acquisition of IVS in 2013 is an important factor behind our progress. Also EMEA, France, Italy, UK, US and Canada saw good growth.
Our product development focuses more on seniors’ needs than on technology, providing smart features in all our models. We also add more services in our offer. The recently launched Doro Liberto® 820, listed at multiple major European operators and distributors is a good example. This strategy will over time also boost the smart phones part of our range which represented 10 percent of our European mobile sales in the quarter.
The senior mobile market is growing and we will continue to lead the market forward by upgrading our model range with smarter features, independently of whether based on feature or smart phones. We will also grow our offering for the care market, addressing the most fragile users, both organically and through acquisitions when suitable.
As we now go forward, I see good opportunities to improve our profit margin as our product investments start paying off in growing sales volume and as operating expenses as a percentage of revenue are expected to decrease.
Doro’s outlook is unchanged; Doro expects growth in 2014, mainly during 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, November 7, 2014, at 07:30 a.m. CET.
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 1,142.5 million (EUR 128.9 million) were reported for 2013. www.doro.com