Lund, 2015-02-13 07:30 CET (GLOBE NEWSWIRE) --
Sustained growth and strategic acquisition
October – December 2014
- Net sales amounted to SEK 436.9m (381.2) - an increase of 14.6 percent.
- Order intake amounted to SEK 366.9m (316.3) - an increase of 16.0 percent.
- Operating profit (EBIT) totaled SEK 37.8m (33.5). The operating margin was 8.7 percent (8.8).
- Profit after tax for the period amounted to SEK 22.4m (26.2).
- Earnings per share after tax amounted to SEK 1.06 (1.26).
- Cash flow from current activities amounted to SEK -8.1m (71.0).
CEO comment
2014 was a milestone year for Doro with important product launches and a strategic acquisition, which will become a platform for a long term development of subscription based service offerings, complementary to our current mainly hardware-based business model. Furthermore, we ended the year with solid fourth quarter growth both in sales and new orders, as well as improvements in group earnings.
Our gross margin improved, raising the 2014 gross margin above the level for 2013. The positive sales growth in higher gross margin regions contributes to this development. Product synergies extracted from our acquisition of IVS in 2013 has also continued to contribute positively to sales growth and gross margin improvement.
The operating margin is largely on same level as last year. The higher sales and gross margin were outweighed by costs for some larger marketing campaigns in several important markets. Working capital increased during the fourth quarter as an effect of strategic listings with new operators resulting in lower cash flow for the quarter, but it is expected to improve towards the end of the first half of 2015.
The strong development of the US dollar against Doro’s most important currencies, particularly the Euro, is an uncertainty for 2015. Maintaining stable gross margin level will require continued cost reductions as well as price adjustments with our customers, and are important priorities for us in 2015.
The new smartphone Doro Liberto 820 is listed at a growing number of customers and has contributed to Doro’s growth in the fourth quarter. Smartphones sales now represent 15 percent of our European mobile sales in the quarter – a sequential increase of 5 percentage points compared to the third quarter. In Germany, Doro’s market share increased to 33 percent in the fourth quarter, up from 28 percent in the third quarter. In France, various telecom operators contributed to our sales growth, and in the Nordics we made progress with several leading operators.
The acquisition of Caretech AB, a leading player in the digitalization of safety alarms for elderly at home, represents a strategic platform in two important dimensions. Short term, it provides a foothold in the Care segment, comprising of solutions supporting elderly in their homes. With a business model built on subscription based services, the acquisition also widens Doro’s long term development options in its current customer group.
We expect that sales and profit for the group will increase in 2015.The main part is expected to come in the second half of the year. We maintain our long term financial targets of an EBIT margin of 10 percent and 20 percent annual sales growth.
Jérôme Arnaud, President & CEO
For further information, please contact:
Jérôme Arnaud, President and CEO, +46 (0)46 280 50 05
Christian Lindholm, CFO, +46 (0) 46 280 50 06
Doro AB discloses the information provided herein pursuant to the Securities Markets Act and/or the Financial Instruments Trading Act. The information was submitted for public release on Friday, February 13, 2015, at 07:30 a.m. CET.
About Doro
Doro AB is a Swedish public company formed in 1974. It released its pioneering ‘easy-to-use’ mobile phone in 2007 and today is the global market-leader within the category. Doro products and solutions are available in more than thirty countries spanning five continents. These include; mobile phones and smart devices, applications and software, fixed line telephony, telecare and mobile health solutions. Doro removes barriers to adoption of new technologies and holds numerous international awards in recognition of its product designs and innovations. Doro shares are quoted on the Nasdaq OMX Stockholm exchange, Nordic List, Small Companies. Net sales of SEK 1,277 million (EUR 135 million) were reported for 2014. www.doro.com
