Profoto publishes preliminary figures for the first quarter 2025 - results affected by challenges in the US.
Profoto today presents preliminary figures for the first quarter of 2025. Preliminary sales amounted to SEK 164m (171), corresponding to a decrease of approximately 3.7%. Preliminary EBIT was SEK 17m (34). The result is affected by a significant decline in sales in the US, mainly due to the current economic situation, as well as negative currency effects. The preliminary EBIT margin during the first quarter was 10.4 percent (20.1).
The strengthening of the Swedish krona has resulted in negative translation differences from operating activities that affected EBIT by SEK -8m (5), a deterioration of SEK 13m compared to the corresponding quarter last year. The translation difference is directly attributable to short-term receivables which are valued at the balance sheet date. Adjusted for this, the preliminary EBIT margin amounted to 15 percent in the first quarter.
Preliminary sales growth by region in reported currency was:
- APAC: +4.3%
- EMEA: +2.6%
- Americas: -12.1%
The negative development in the US can mainly be explained by the current economic situation, which has created uncertainty and a reduced willingness to invest among customers. Specifically, retailers have become cautious as many customers have held off on placing orders.
Previous dividend proposal withdrawn while share buy-back proposal remains
Due to the current market situation, the Board of Directors proposes to withdraw the previous proposal regarding the dividend for 2024. The proposal for a share buy-back program of up to 10% of the shares until the 2026 AGM remains. Through this proposal, Profoto increases its financial flexibility in this time of uncertainty.
Adjustment of cost base with continued focus on sales and product development
Over the past year, the company has completed three successful flash launches and built a future-proof flash portfolio. With a complete and largely renewed product portfolio in flash, and the newly launched L1600D in LED, Profoto can focus and streamline product development while maintaining competitiveness. Profoto has decided to implement a cost savings plan that will reduce the cost base by approximately 20 percent. The full impact of the savings measures is expected to be visible in the second half of 2025.
"We are facing a challenging market situation, especially in the US, and are now acting decisively with cost reductions to secure our future profitability. At the same time, we continue to invest strategically in LED to take a premium position in the film and LED market and to maintain our leading position in innovative lighting solutions," says Anders Hedebark, CEO of Profoto.
The full report will be presented at the regular reporting session on May 7.
Contact
Amanda Åström
Head of Investor Relations
Telefon
+46 73 679 34 48
E-post
amanda.astrom@profoto.com
About Profoto
Profoto was founded more than 50 years ago and has since then been a world leader in lighting equipment for professional photographers, driving innovation and awareness of how to create better images through light. We know that light is the indispensable source in all image creation - regardless of camera or situation. Creating great images is about mastering and shaping light. The end users are professional photographers and commercial customers, including major consumer brands and e-commerce companies. The company currently has sales in 51 countries worldwide. Net sales in 2024 totaled SEK 731m, with an EBIT margin of 23 percent. Profoto has 148 employees at its headquarters in Stockholm and in subsidiaries in the USA, Japan, China, Germany, France, England and the Netherlands.
For more information about Profoto, please visit https://investors.profoto.com
This information is information that Profoto Holding 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 2025-04-15 08:39 CEST.
