DORO

Quarter 2 2024 in summary

• Doro‘s net sales amounted to SEK 206.7 million (203.0), an increase of 1.8 percent.
• Gross margin was 44.6 percent (40.3).
• EBITDA amounted to SEK 20.4 (12.8), an increase of 59.4 percent.
• Operating profit (EBIT) amounted to SEK 12.6 million (1.0), corresponding to an operating margin of 6.1 percent (0.5).
• Profit after tax for the period was SEK 14.2 million (1.1) and earnings per share was SEK 0.58 (0.05).
• Free cashflow was SEK 31.7 million (13.1).

January-June 2024 in summary

• Doro‘s net sales amounted to SEK 401.3 million (411.3), a decrease of ‑2.4 percent.
• Gross margin was 43.3 percent (38.0).
• EBITDA amounted to SEK 32.3 (28.0), an increase of 15.4 percent.
• Operating profit (EBIT) amounted to SEK 15.7 million (4.2), corresponding to an operating margin of 3.9 percent (1.0).
• Profit after tax for the period was SEK 20.3 million (4.7) and earnings per share was SEK 0.83 (0.19).
• Free cashflow was SEK 31.5 million (‑1.8).

Message from the CEO
Strong financial performance for the quarter
 
Having joined Doro towards in the middle of June, I am delighted to report the business is delivering good profits and generating a strong cash flow. EBIT for the quarter was SEK 12,6 million giving us an operating margin of 6,1%. Cash flow for operating activities was SEK 44.2 million with free cash flow after investments of SEK 31.7 million. These results provide us with a strong platform from which we can invest in growing our business both within telecoms and into new categories.
 
Sales for the second quarter were SEK 206.7 million, an increase of 1,8% compared to the same quarter of 2023, and step in the right direction after a relatively slow first quarter. Sales performance was uneven across our main markets. Strong mobile phone sales in France, aided slightly by customers pulling forward orders from early July into June ahead of an increase in WEEE* fees in France from July 1, 2024, were somewhat offset by a less favourable result in Sweden as a result of fewer B2B sales.
 
Gross margin for the quarter was 44.6%, up 4,3pts versus the same period last year thanks to a focus upon trading customers up to 4G technology. We have also benefited from the work done over the past twelve months to improve operational efficiency through, for example, reducing in in-bound freight costs. Operating expenses remain well in control.
 
During the quarter our product office worked hard to finalise our newest product, the video doorbell. This is fantastic addition to the Doro range enabling seniors to preview who is at the door via their phone and, uniquely, if they are not comfortable answering then they can pass the call to a relative or trusted friend. We will launch the product through a few selected retailers and via our D2C business during Q3 as we gear up for greater distribution later in the year.
 
Our technical teams have been engaged in developing the next generation of feature phones and smartphones. The new models being developed will be another step forward in functionality and design and will be compliant with both the USB-C and Eco design directives. We are finalising plans for the introduction of the new feature phone models during Q4 as the first step in this re-stage of our full mobile phone business.
 
In the middle of June, we announced the signing of a Share Purchase Agreement for the divestment of our German subsidiary IVS. Once complete this will align our approach with our other regions and allow us to focus completely on driving sales and upon increasing our share of the German market.
 
During the course of my first month with Doro, I have spent time in our Malmö HQ and with our teams in France and the UK. I have been astounded by the immense engagement everyone has towards our goal of enriching the lives of seniors. This engagement combined with excellent products and an efficient supply chain provides a strong foundation from which to build. As such, I am excited for the many opportunities that lie ahead and to unlocking the full potential of the business.

Julian Read, President and CEO
 
*Waste from Electrical and Electronic Equipment (WEEE) is an EU scheme under which a fee is paid by the eventual seller (retailer) of electronic goods to the end user. Fees in France were increased for certain electronic goods from July 1, 2024. The fee for mobile phones and smartphones increased by €1.67 per unit.