STOCKHOLM, SWEDEN / ACCESSWIRE / August 23, 2023 / STRAX (STO:STRAX)(FRA:NOBC) STRAX - Challenging quarter albeit strong gross margin development, whilst focus remains on the restructuring plan
The Group's sales for the period January 1 - June 30, 2023, amounted to MEUR 35.2 (61.0) with a gross margin of
32.1 (17.7) percent.
The Group's result for the period January 1 - June 30, 2023, amounted to MEUR -6.5 (-2.0) corresponding to
EUR -0.05 (-0.02) per share.
EBITDA from remaining operations for the period January 1 - June 30, 2023, amounted to MEUR 0.2 (2.4).
Equity as of June 30, 2023, amounted to MEUR -12.2 (10.5) corresponding to EUR -0.10 (0.09)
per share.
STRAX has worked out a tactical plan involving divesting certain assets to strengthen the liquidity and balance sheet. As a part of that, PCP has also agreed to restate the covenants for Q1, Q2 and Q3 of 2023 to adjust for the current situation. STRAX thereby returns to being in compliance with the loan agreement, even though some of the actions have been somewhat delayed due to market conditions and seasonal delays. STRAX is now executing the plan and expects to considerably lower the debt level of the Group during 2023 and 2024.
Significant events after the end of the period
STRAX signed a MEUR 10 investment agreement with ZEBRA Invest GmbH, a Germany based investment company, for 50.1% ownership of its European based distribution business. The enterprise value of the Strax European distribution business in the transaction is MEUR 32 and the transaction will furthermore reduce debt within remaining STRAX by MEUR 12. All closing conditions have been fulfilled and the transaction will be completed on or before August 31, 2023.
STRAX subsidiary Urbanista launched Malibu, the world's first solar charging speaker using Powerfoyle solar cell technology by Exeger. Following the previous highly successful launches of the Los Angeles solar charging headphones in 2021 and Phoenix earphones in 2022, the addition of the Malibu speaker to the family of solar powered products completes the brand's offering in the segment. The launch of Malibu speaker further cements Urbanista's position as the leader in the category in the audio space.
"We remain focused on our restructuring plan to strengthen our balance sheet and improve liquidity and recently signed an investment agreement for 50.1% of our European distribution business, valuing it at 32 MEUR. Our core own brands, Urbanista, Clckr and Planet Buddies have continued to win new retail accounts in North America,
paving the way for a strong H2".
Gudmundur Palmason, CEO
For further information please contact:
Gudmundur Palmason
CEO, STRAX AB, +46 8 545 017 50
About STRAX
STRAX is a global leader in accessories that empower mobile lifestyles. Our portfolio of branded accessories covers all major mobile accessory categories: Protection, Power, Connectivity, as well as Personal Audio.
Own brands are Urbanista, Clckr, Planet Buddies and RichmondFinch. Our distribution business reaches a broad customer base, through 70 000 brick and mortar stores around the globe, as well as through online marketplaces and direct-to-consumers. Our distribution business also services over 40 other major mobile accessory brands.
Founded as a trading company in 1995, STRAX has since expanded worldwide and evolved into a global brand and distribution business. Today we have over 200 employees in 13 countries. STRAX is listed on the Nasdaq Stockholm stock exchange.
Discontinued operations include Health & Wellness, own brands Dóttir and grell, and licenced brand portfolio of adidas and Diesel.
This information is information that STRAX is obliged to make public pursuant to the EU Market Abuse Regulation and the Securities Markets Act. The information was submitted for publication, through the agency of the contact persons set out above, at 2023-08-23 18:00 CEST.
Attachments
Q2 2023
SOURCE: STRAX
View source version on accesswire.com:https://www.accesswire.com/776346/Interim-report-Q2-2023
