Profoto announces first-quarter sales down almost 4 percent
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Swedish lighting manufacturer Profoto first-quarter net sales totaled SEK 164 million (compared to SEK 171 million), down 3.7 percent. Organic growth totaled -4.7 percent, and the currency effect was 1.0 percent. Profit for the period was SEK 3 million, compared to SEK 27 million last year.
Significant events after the end of the period
The cost base will be reduced by approximately 20 percent, corresponding to an improved cash flow of SEK 60-80m, and an improved EBIT of SEK 30m, on an annual basis. The full impact of the savings measures is expected to become visible in the second half of 2025, the company said. In view of the current market situation, the Board of Directors proposes to withdraw the previous proposal regarding the dividend for 2024. The proposal for a share buy-back program of up to 10 percent of the shares until the 2026 AGM remains. This proposal increases Profoto’s financial flexibility.
| Jan–Mar 2025 | Jan–Mar 2024 | Apr 2024– Mar 2025 | Full year 2024 | |
| Net sales, SEKm | 164 | 171 | 724 | 731 |
| Organic growth, % | -4.7 | -24.6 | -0.3 | -6.5 |
| EBITA, SEKm | 26 | 44 | 186 | 204 |
| EBITA margin, % | 15.6 | 25.6 | 25.6 | 27.9 |
| EBIT, SEKm | 17 | 34 | 150 | 167 |
| EBIT margin, % | 10.4 | 20,1 | 20.7 | 22.9 |
| Adjusted EBIT, SEKm | 17 | 34 | 135 | 153 |
| Adjusted EBIT margin, % | 10.4 | 20.1 | 18.7 | 20.9 |
| Profit/loss for the period, SEKm | 3 | 27 | 103 | 126 |
| Cash flow from operating activities, SEKm | 58 | 13 | 143 | 97 |
| Net debt, SEKm | 211 | 62 | 211 | 235 |
| Net debt/EBITDA LTM | 1.02 | 0.26 | 1.01 | 1.04 |
| Return on capital employed, % | 25.4 | 28.9 | 25.4 | 28.7 |
| Return on operating capital, % | 28.0 | 38.9 | 28.0 | 31.9 |
| Earnings per share, SEK | 0.08 | 0.66 | 2.57 | 3.15 |
Results Affected by Weak Demand in the United States
In the first quarter of 2025, Profoto’s net sales totaled SEK 164m (171), down 3.7 percent compared to the same quarter last year, the company said.The EBIT margin was 10.4 percent (20.1). EBIT was affected by a significant decline in sales in the United States and negative currency effects. These figures are in line with the preliminary figures communicated on April 15. The weak performance in the United States is mainly explained by the current economic situation, which has created uncertainty and reduced willingness to invest among customers. In particular, retailers have become more cautious as their customers have held off on placing orders. Other geographical markets showed some growth compared to the previous year. During the quarter, the Swedish krona strengthened, particularly against the US dollar, which had negative currency effects. Adjusted for this, the EBIT margin amounted to 15 percent.
New US tariffs lead to price increases
In April, new tariffs were introduced in the United States, which means that Profoto products are now subject to an additional tariff of at least 10 percent. While the majority of products are manufactured in Asia and Europe, accessories, which account for around 10 percent of total sales, are made in China. Some other products contain components originating in China, but these account for a smaller share of the total value content. To protect our margins and long-term profitability, Profoto intends to implement price increases on the US market.