Financial summary April-June 2024
• Net sales totaled SEK 196m (182), an increase of 7.3 percent.
Organic growth totaled 7.6 percent, and the currency effect, -0.3 percent.
• EBIT totaled SEK 36m (47) and the EBIT margin totaled 18.5 percent (25.8).
• Profit for the period was SEK 28m (36).
• The return on operating capital totaled 34.0 percent (65.4).
• Cash flow from operating activities totaled SEK 34m (13).
• Earnings per share (basic and diluted) 1) totaled SEK 0.70 (0.89).
Financial summary January-June 2024
• Net sales totaled SEK 366m (411), a decrease of 10.9 percent.
Organic growth totaled -10.4 percent, and the currency effect, -0.5 percent.
• EBIT totaled SEK 70m (119) and the EBIT margin was 19.2 percent (28.9).
• Profit for the period totaled SEK 55m (92).
• Cash flow from operating activities totaled SEK 46m (118).
• Earnings per share (basic and diluted) 1) totaled SEK 1.37 (2.29).
1) Calculated based on 40,000,000 ordinary shares before and after dilution.
CEO comment
Growth from product launches. Continued investments in market and products.
A number of product launches generated organic sales growth of 8 percent, to SEK 196m, in a market which continued to be cautious. Both EMEA and APAC grew by 15 percent, while the Americas declined by 4 percent compared to a strong comparison quarter. The EBIT margin was negatively impacted by costs for marketing activities and product development and amounted to 19 percent (26).
Product launches drove growth despite slowing demand in the quarter
During the quarter, we launched several new products, most notably our new monolight Pro-D3, but also six new light shapers. These new products were well received by retailers and photographers, allowing us to show growth after a number of quarters of declining sales. In connection with the product launches, we have had a very high level of activity in the market and higher marketing costs. As in recent quarters, professional photographers and large studios alike continued to be cautious about investing in equipment, due to the uncertain macroeconomic environment and high interest rates. Underlying demand for our products therefore remains subdued in all our regions.
Continued focus on product launches
I am very proud of the goal-oriented work behind the launches during the quarter and happy that it has paid off. As I mentioned earlier, I see this as the start of a very exciting time with more frequent product launches than we have had in the last two years. The growth during the quarter gives me confidence to continue to invest heavily in innovation and we are planning a number of product launches across all our growth segments in the coming year. To maximize the impact of these planned launches, we are also continuing ongoing development of how we launch and sell our products, especially in the segments of lighting for film production and solutions for large studios.
First product for film production unveiled
At the beginning of June, we presented our first product for film production, the L1600D, during CineGear at Warner Bros studios in Burbank, California. The initial response to our product and positioning was positive, and we see this as the first of a number of products aimed at this segment. We expect to start delivering the L1600D towards the end of the year.
With this positive response, we are continuing to invest in additional products for this segment. This effort also requires a new marketing and sales organization, which we are establishing in Los Angeles.
To summarize, the macroeconomic environment remains uncertain, and I am dissatisfied with the low profitability we showed in the quarter. At the same time, I am proud that our organization has worked so determinedly on what we can influence ourselves and that this diligent work has led to product launches and growth.
I am confident that our investments in innovation and our disciplined way of working will continue to pay off, and I stand by our financial targets of at least 10 percent organic growth and 25-30 percent EBIT margin over time.
Sundbyberg, July 17, 2024
Anders Hedebark
President and CEO
Financial calendar
Interim Report Q3 2024 - October 24, 2024
Year-End Report 2024 - February 6, 2025
Conference call
Profoto Holding AB (publ) will publish its interim report for the second quarter of 2024 on Wednesday, July 17, at 8:00 a.m. CEST. At 10:00 a.m. CEST the same day, a webcast teleconference will be held in which Anders Hedebark, President and CEO, will pres- ent the report together with the CFO, Carl Bandhold. The presenta- tion will be followed by a Q&A session. The presentation will be held in English. If you wish to participate via the webcast, please use the link below.
https://ir.financialhearings.com/profoto-q2-report-2024
If you wish to participate via teleconference, please register via the link below. After registering, you will receive a phone number and
a conference ID to log in to the conference. The teleconference provides an opportunity to ask questions in real time. https://conference.financialhearings.com/teleconference/?id=50048837
For further information, please contact:
Carl Bandhold, CFO carl.bandhold@profoto.com
+46 (0) 702 96 76 97
Amanda Åström, Investor Relations amanda.astrom@profoto.com
+46 (0) 736 79 34 48
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 - whatever the 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 54 countries worldwide. Net sales in 2023 totaled SEK 787m, with an EBIT margin of 26 percent. Profoto has approximately 140 employees at its headquarters in Stockholm and in subsidiaries in the US, 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 and the Securities Markets Act. The information was submitted for publication, through the agency of the contact persons set out above, at 2024-07-17 08:00 CEST.
