Year-end report 2016 Sweden, Lund, 2017-02-17 08:0
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Sweden, Lund, 2017-02-17 08:00 CET (GLOBE NEWSWIRE) -- Fourth quarter burdened by previously announced restructuring costs. Looking ahead, strong order book and gross margin provides confidence.
October – December 2016
- Net sales amounted to SEK 599.4m (622.6), a decrease of 3.7 percent.
- Operating profit (EBIT), including restructuring costs of SEK 20.6m, was SEK 20.3m (58.7), corresponding to an operating margin of 3.4 percent (9.4).
- Order intake amounted to SEK 572.3 m (527.5), an increase of 8.5 percent.
- Order book at the end of the period amounted to SEK 307.8m (193.7).
- Profit after tax for the period amounted to SEK 11.4m (42.4).
- Earnings per share after tax amounted to SEK 0.49 (1.82).
- Cash flow from current activities amounted to SEK 50.2m (32.1).
Dividend The Board of Directors proposes a dividend for 2016 of SEK 1.00 (-) per share to the annual general meeting.
CEO comment During my first weeks at Doro, after meeting with Doro employees and customers, I am convinced that the organization has the competence needed to move forward in order to continue delivering on customer expectations and strengthen its position further in this growing niche market. My first tasks will be to get the Care business back on track and to focus on group efficiency and improving time to market, while in parallel developing the company’s growth strategy further.
Sales in Doro Care have been negatively impacted by the delayed new framework agreement with SKL, however, 12 month forward looking recurring revenues increased by 138 percent. In Consumer Devices sales were good but compare unfavourably to the exceptionally strong fourth quarter 2015. For the full year 2016, sales increased by 7.1 percent while it in the fourth quarter declined by 3.7 percent.
The acquisition of Trygghetssentralen and committed efforts to strengthen our product portfolio resulted in an increased gross margin of 42.1 percent in the fourth quarter (38.5 in Q4 2015). The strength of our current product portfolio is seen in our order book, which amounted to SEK 307.8m by the end of 2016, 58.9 percent higher than a year ago.
EBIT in the fourth quarter was negatively affected by restructuring costs mainly related to consolidation of management and R&D functions to our head office in Lund, but also by lower share of new Doro Care contracts and increased depreciations due to product rationalisations. EBIT margin reached 2.4 percent for the year and 3.4 percent in the fourth quarter.
Cash flow from current activities in the fourth quarter was SEK 50.2m (32.1). This improvement is due to intensified focus on cash management and renegotiated supplier contracts.
Going forward, our expectation for 2017 is that both sales and EBIT will increase compared to 2016.
Robert Puskaric, President & CEO
For further information, please contact: Robert Puskaric, President and CEO, +46 (0)46 280 50 05 Magnus Eriksson, CFO, +46 (0)46 280 50 06
Doro’s report to be presented via audiocast Analysts, investors and the media are welcome to attend a presentation via http://edge.media-server.com/m/p/yc92rix6 or by telephone at 09:00 CET on February 17, 2017. Doro’s President and CEO Robert Puskaric and Doro’s CFO Magnus Eriksson will hold the presentation and answer questions. Before the start of the presentation, the material will be made available at http://corporate.doro.com/blog/hp-doro-webcast .
Call-in details Sweden: + 46 (0) 8 505 564 74 France: + 33 (0) 170 750 712 United Kingdom: + 44 (0) 203 364 5374 United States: + 1 855 7532 230
About Doro Doro develops telecom products and services for Seniors to lead full and rich lives: to do things they want to do more easily as well as the things they thought they might never do. The global market-leader in senior mobile phone, Doro offers easy-to-use mobile phones and smartphones, mobile applications, fixed line telephony with loud and clear sound. Within Doro Group, Doro Care offers social care and telecare solutions for elder and disabled persons for independent and safe living in their own homes. Doro AB is a Swedish public company and its shares are quoted on the Nasdaq OMX Stockholm exchange, Nordic List, Small Companies. Total revenue of SEK 1,959 million (EUR 205 million) was reported for 2016.
This information is information that Doro AB (publ) 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 08:00 CET on 17 February 2017.
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