Profoto reports fourth-quarter sales down slightly but profits up
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Swedish lighting company Profoto announced that fourth-quarter sales (Oct. – Dec. 2024) amounted to SEK 200 million (204), a decrease of 1.8 percent. Organic growth amounted to -3.1 percent and currency effect to 1.3 percent.Profit for the period totaled SEK 43 million (37).
For the full year, net sales amounted to SEK 731 million (787), a decrease of 7.1 percent. Organic growth amounted to -6.5 percent and currency effect to -0.6 percent. Full-year profit totaled SEK 126 million (155).
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, Profoto management said it 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.
After a period of few major product launches, Profoto management says it is 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, Profoto launched several products aimed at its most important customer groups, including Pro-B3 and D30.
During the first quarter, Profoto said it will launch its first product aimed at the cinema lighting industry, the L1600D, which is the first in a series of upcoming products 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, the company says.