January 1 - December 31, 2024
Financial summary October-December 2024
- Net sales amounted to SEK 200m (204), a decrease of 1.8 percent. Organic growth amounted to -3.1 percent and currency effect to 1.3 percent.
- EBIT totaled SEK 57m (51), and the EBIT margin 28.7 percent (25.0).
- Adjusted EBIT totaled SEK 52m (51), and the adjusted EBIT margin 26.0 percent (25.0). Adjustments for the period related to a reduction of the liability for an acquisition-related earn-out of SEK 5m.
- Profit for the period totaled SEK 43m (37).
- The return on operating capital totaled 31.9 percent (49.0).
- Cash flow from operating activities totaled SEK 37m (65).
- Earnings per share (basic and diluted) totaled SEK 1.08 (0.92).
Financial summary January-December 2024
- Net sales amounted to SEK 731m (787), a decrease of 7.1 percent. Organic growth amounted to -6.5 percent and currency effect to -0.6 percent.
- EBIT totaled SEK 167m (204), and the EBIT margin 22.9 percent (26.0).
- Adjusted EBIT totaled SEK 153m (204), and the adjusted EBIT margin 20.9 percent (26.0). Adjustments for the period related to a reduction of the liability for an acquisition-related earn-out of SEK 14m.
- Profit for the period totaled SEK 126m (155).
- Cash flow from operating activities was SEK 97m (211).
- Earnings per share (basic and diluted) totaled SEK 3.15 (3.88).
Significant events after the end of the period
- The Board of Directors proposes a dividend of SEK 2.00 (3.75) per share, corresponding to a total amount of SEK 80m (150) divided into two instalments.
- In addition, the Board of Directors has decided on an extended dividend policy to also allow for repurchase of shares as follows: "Profoto aims to distribute at least 50 percent of its net profit to its shareholders through cash dividends and/or repurchase of shares while taking into account other factors such as financial position, cash flow and growth opportunities."
Key ratios, Group
| Oct-Dec 2024 | Oct-Dec 2023 | Full year 2024 | Full year 2023 | |
| Net sales, SEKm | 200 | 204 | 731 | 787 |
| Organic growth, % | -3.1 | -10.1 | -6.5 | -12.6 |
| EBITA, SEKm | 67 | 63 | 204 | 258 |
| EBITA margin, % | 33.6 | 31.0 | 27.9 | 32.8 |
| EBIT, SEKm | 57 | 51 | 167 | 204 |
| EBIT margin, % | 28.7 | 25.0 | 22.9 | 26.0 |
| Adjusted EBIT, SEKm | 52 | 51 | 153 | 204 |
| Adjusted EBIT margin, % | 26.0 | 25.0 | 20,9 | 26.0 |
| Profit/loss for the period, SEKm | 43 | 37 | 126 | 155 |
| Cash flow from operating activities, SEKm | 37 | 65 | 97 | 211 |
| Net debt, SEKm | 235 | 44 | 235 | 44 |
| Net debt/EBITDA LTM | 1.04 | 0.16 | 1.04 | 0.16 |
| Return on capital employed, % | 28.7 | 37.9 | 28.7 | 37.9 |
| Return on operating capital, % | 31.9 | 49.0 | 31.9 | 49.0 |
| Earnings per share, SEK | 1.08 | 0.92 | 3.15 | 3.88 |
Successful product launches in a still challenging market
During the final quarter of the year, we saw a continued cautious market situation and a strengthened competitive situation, mainly for LED products. Reported sales decreased by 1.8 percent to SEK 200m (204) with organic growth of -3.1 percent. The weak market has to some extent been compensated for by successful product launches in the quarter primarily in North America and Europe. The development in Asia, mainly Japan and China, has continued to be weak.
Adjusted EBIT amounted to SEK 52m (51) with a healthy EBIT margin of 26.0 percent (25.0). The corresponding figures for the full year were SEK 153m (204) and 20.9 percent (26.0). The decrease for the year is attributable to lower sales combined with costs for recruitment and strategic investments in the marketing and sales organization.
Successful product launches in the quarter
After a period of few major product launches, we are now starting to see the results of our extensive investments in product development in recent years. These investments renew and strengthen our customer offering in flash. At the end of the year, we launched several products aimed at our most important customer groups, including Pro-B3 and D30. The reception of these products and the Pro-D3 launched earlier in the year has been in line with our high expectations, which is of course gratifying.
Launch of the company's first product aimed at the cinema lighting industry
During the first quarter we will be launching our first product aimed at the cinema lighting industry, the L1600D, which is the first in a series of upcoming products in our drive to target a market segment in LED for moving images. This market has the potential to become as large as our current core market in flash for professional photographers. Although we are at an early stage, the initial customer response has been positive to our product which offers a powerful light combined with a low weight and an innovative form factor.
Building on our strong global brand and our focus on premium products combined with a number of key recruitments, we are now ready to establish ourselves with high market activity in the major film industry markets of North America and the UK. We expect this to result in increased sales towards the end of the year.
Confidence for 2025
To summarize, macroeconomic conditions remain uncertain, which has a direct impact on underlying demand and thus our profitability. In addition, there is uncertainty surrounding the ongoing discussions on tariffs, but we are monitoring developments closely to be able to adapt to any changes. However, we look forward to 2025 with great confidence as we now face a very exciting chapter in the company's development through our imminent entry into the global film market and with our recently launched and upcoming products.
Given this, I am confident that our disciplined and dedicated approach will continue to deliver results and I remain committed to our financial targets of at least 10 percent organic growth and 25-30 percent EBIT margin.
Sundbyberg, February 12, 2025
Anders Hedebark
President and CEO
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 approximately 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 2025-02-12 08:00 CET.
