In This Article:
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Revenue: SEK206.7 million, up almost 2% from the same quarter last year.
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Gross Margin: 44.6%, an increase of 4.3 percentage points from the previous year.
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Operating Profit: SEK12.6 million, with an operating profit margin of 6.1%.
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Net Income: SEK14.2 million, compared to SEK1 million last year.
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Earnings Per Share (EPS): SEK0.58, up from SEK0.05 last year.
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EBITDA: SEK20.4 million, compared to SEK12.8 million last year.
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Cash Flow from Operations: SEK44.2 million, up from SEK21.6 million last year.
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Free Cash Flow: SEK31.7 million, compared to SEK13.1 million last year.
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Net Cash Position: SEK163.7 million, compared to SEK74.9 million last year.
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Equity Ratio: 58.1%, up from 55.4% last year.
Release Date: July 17, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Doro AB (STU:DR8A) reported a solid sales increase of nearly 2% year-over-year, reaching over SEK206 million in Q2.
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Gross margins improved significantly to 44.6%, up 4.3 percentage points from the same quarter last year, driven by a better product mix and a shift from 2G to 4G.
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The company achieved an operating profit of SEK12.6 million for the quarter, with a profit margin of 6.1%, up from SEK1.0 million last year.
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Cash flow from operations improved significantly to SEK44.2 million, compared to SEK21.6 million in the previous year.
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Doro AB (STU:DR8A) successfully managed inventory levels, achieving the lowest inventory in 2.5 years, and proactively adapting to EU regulations on USB port charging.
Negative Points
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Sales in the Nordics decreased due to weaker B2B sales and delayed 2G to 4G switch, impacting consumer upgrades.
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The UK and Ireland markets remained flat year-on-year, affected by aggressive competitor pricing.
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Net sales in Central and Eastern Europe, particularly Germany, dropped due to a strategic shift away from non-Doro products.
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Order intake was down by 8% and the order book decreased by 30%, raising concerns about future sales stability.
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The company anticipates potential impacts on Q3 sales due to the divestment of its German subsidiaries and associated volume loss.
Q & A Highlights
Q: Sales were up by almost 2%. Can you discuss how much of this was due to price versus volume? A: Isabelle Senges, CFO: It's a mix, with a slight increase in price due to more 4G sales. Julian Read, CEO: Volumes are slightly down, but we're trading consumers up to higher-priced products, resulting in higher cash and percentage margins.
Q: The gross margin is impressive at 44.6%. What is the expected long-term gross margin considering freight costs? A: Isabelle Senges, CFO: We anticipate a margin between 40% and 42%, though freight costs may rise. Julian Read, CEO: The largest factor in margin improvement is our product mix, which we can control.