Profoto’s first-quarter sales up 16.5 percent; organic growth flat

Swedish lighting company Profoto said first-quarter net sales totaled SEK 229 million (compared to 196 million), an increase of 16.5 percent. Organic growth totaled 0.0 percent, the currency effect was 7.3 percent, and the effect of acquisitions was 9.1 percent.

Key ratios, Group
Jan–Mar
2023
Jan–Mar
2022
Apr 2022–
Mar 2023
Full year
2022
Net sales, SEKm 229 196 880 848
Net sales pro forma, SEKm 220 872
Organic growth, % 0.0 28.3 -4.8 -0.8
EBITDA, SEKm 91 69 344 322
EBITA, SEKm 86 64 321 299
EBITA margin, % 37.4 32.6 36.4 35.3
EBIT, SEKm 72 55 266 249
EBIT pro forma, SEKm 55 249
EBIT margin, % 31.3 27.9 30.2 29.3
EBIT margin pro forma, % 25.2 28.6
Adjusted EBIT, SEKm 72 65 264 257
Adjusted EBIT margin, % 31.3 33.1 29.9 30.3
Profit/loss for the period, SEKm 56 40 211 194
Cash flow from operating activities, SEKm 105 54 287 236
Net debt, SEKm -75 -179 -75 4
Net debt/EBITDA LTM -0.22 -0.63 -0.22 0.01
Return on equity, % 51.4 45.5 51.4 53.8
Earnings per share, SEK 1.40 0.99 5.26 4.85

“We are pleased to report a stable and profitable first quarter for Profoto. EBIT for the quarter totaled SEK 72m, corresponding to an EBIT margin of 31 percent,” says  Anders Hedebark, President and CEO. ”The strength of our business model allows us to maintain our high profit margins. This, combined with our capital efficiency, enables a return on equity of over 50 percent.

“In the first quarter of 2023, our markets paced on, but we did not grow organically. Sales growth for the period was 17 percent, with the effect of acquisitions totaling 9 percent and the currency effect being 7 percent. Developments in China were positive during the quarter. In the United States, demand remained hesitant, as was also the case in parts of Europe. The market in France was good, while it was weaker in Germany and the UK. Sales for the quarter totaled SEK 229m, representing an increase of 17 percent compared to the previous year. How the demand will develop is difficult to foresee. Our business is fundamentally difficult to forecast, even more so in combination with the current macroeconomic situation.”