FIRST QUARTER 2024 IN SUMMARY
- Doro's net sales amounted to SEK 194.6 million (208.3), a decrease of -6.6 percent.
- Gross margin was 42.0 percent (35.8).
- EBITDA amounted to SEK 11.9 (15.2), a decrease of 21.7 percent.
- Operating profit (EBIT) amounted to SEK 3.1 million (3.2), corresponding to an operating margin of 1.6 percent (1.5).
- Profit after tax for the period was SEK 6.1 million (3.6) and earnings per share was SEK 0.25 (0.15).
- Free cashflow was SEK -0.2 million (-14.9).
MESSAGE FROM THE CEO
Doro sales during the first quarter reached SEK 194.6 million, a decrease of -6.6 percent. While the sales decline is notable, Doro demonstrated resilience and achieved an improved gross margin, reaching 42 percent, an increase of 6.2 percentage points versus last year. The positive gross margin development was largely driven by the higher share of Doro branded and 4G products, underscoring our strategic positioning and consumer appeal.
Particularly encouraging was the robust performance of our feature and smart phones which experienced both increased sales and margins in the quarter. The reduction of fixed-line telephony explains a large part of the year-on-year decrease in sales. Landline telephony is a shrinking market and Doro has chosen to focus on other ways to reach this group of consumers, mostly via its 4G fixed-wireless phones. Additionally, the traditional seasonality of our business, with historically stronger performances in the second half of the year, once again asserted itself.
Doro benefited from the early move to a 4G feature phone portfolio, efficient logistics management, and steady cost control on component and material purchasing. In addition, the restructuring of our German business, although resulting in a drop in non-Doro product sales, significantly bolstered margins. We expect to finalize the divestment of our German supply and logistics business in the coming months, which should further streamline our DACH operations.
Innovation remains a cornerstone of our strategy, exemplified by the unveiling of our new Doro Doorbell product at the recent Mobile World Congress in Barcelona. This quarter saw increased investments in development, marketing, and product innovation. In addition, there was a one-off cost associated with the change of management. Despite these increased costs, our solid core business and good gross margin enabled us to maintain an EBIT (1.6%) on par with last year's performance.
As we transition to the next phase, I am pleased to announce that as of 15th June 2024, the reins of leadership of Doro will pass to Julian Read. Julian brings a wealth of experience in brand building and leadership, coupled with a humble demeanour that aligns well with Doro's values and company culture. I have every confidence that under Julian's guidance, Doro will continue its trajectory of success and innovation.
In closing, I would like to extend my heartfelt gratitude to our valued customers, partners, and suppliers, and in particular to my colleagues for their unwavering support over the years. Together, we have achieved remarkable milestones, and I am very optimistic about the bright future that lies ahead for Doro.
Jörgen Nilsson, President and CEO
WEBCAST
A video conference call will be held on Friday, 26 April at 9.00 am (CEST) when President and CEO Jörgen Nilsson and CFO Isabelle Sengès will present the report. The videoconference is accessed at Quarterly report meeting (doro.com). The presentation material is available on Doro's financial website Presentations (doro.com).
For more information, please contact:
Jörgen Nilsson, President & CEO, +46 731 01 28 01, ir@doro.com
About Doro
Doro is a leading technology brand for seniors developing consumer products and services to support an active and independent life. Doro's technology enables generations to connect digitally - both while at home and when out and about. Doro is a Swedish company listed on Stockholm Nasdaq Stock Exchange. The company is headquartered in Malmö and has sales operations in more than 20 countries. In 2023, Doro had 118 employees and net sales amounted to SEK 973.6 million (EUR 85 million), making it the European market leader for senior specialised mobile phones. Read more about Doro on our website www.doro.com/
This information is information that Doro AB 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 2024-04-26 08:00 CEST.
