Profoto reports nine-month sales decreased 9%
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Swedish lighting company Profoto Holdings reported, for the Jan. 1–Sept. 30, 2024, period, that net sales totaled SEK 530m (583), a decrease of 9.0 percent. Organic growth totaled -7.7 percent, and the currency effect, -1.3 percent. Adjusted EBIT amounted to SEK 101m, compared to SEK 153 last year, and adjusted EBIT margin to 19.0 percent, compared to 26.3 percent.
For the July through September period, net sales totaled SEK 164m (172), a decrease of 4.4 percent. Organic growth totaled -1.1 percent, and the currency effect was -3.3 percent. Adjusted EBIT amounted to SEK 30m (35) and adjusted EBIT margin to 18.4 percent (20.2). Adjustments for the period related to a reduction of the liability for an acquisition-related earn-out of SEK 9m.
| Jul–Sep 2024 | Jul–Sep 2023 | Jan–Sep 2024 | Jan–Sep 2023 | Oct 2023– Sep 2024 | Full year 2023 | |
| Net sales, SEKm | 164 | 172 | 530 | 583 | 734 | 787 |
| Organic growth, % | -1.1 | -28.7 | -7.7 | -12.8 | -9.0 | -12.6 |
| EBITA, SEKm | 48 | 48 | 137 | 195 | 200 | 258 |
| EBITA margin, % | 29.0 | 28.0 | 25.9 | 33.4 | 30.5 | 32.8 |
| EBIT, SEKm | 39 | 35 | 110 | 153 | 161 | 204 |
| EBIT margin, % | 23.9 | 20.2 | 20,8 | 26.3 | 22.0 | 26.0 |
| Adjusted EBIT, SEKm | 30 | 35 | 101 | 153 | 153 | 204 |
| Adjusted EBIT margin, % | 18.4 | 20.2 | 19.1 | 26.3 | 20.7 | 26.0 |
| Profit/loss for the period, SEKm | 28 | 27 | 83 | 119 | 118 | 155 |
| Cash flow from operating activities, SEKm | 14 | 29 | 60 | 147 | 124 | 211 |
| Net debt, SEKm | 219 | 88 | 219 | 88 | 219 | 44 |
| Net debt/EBITDA LTM | 0.98 | 0.28 | 0.98 | 0.28 | 0.98 | 0.16 |
| Return on capital employed, % | 29.6 | 47.9 | 29.6 | 47.9 | 29.6 | 37.9 |
| Return on operating capital, % | 32.3 | 56.5 | 32.3 | 56.5 | 32.3 | 49.0 |
| Earnings per share, SEK | 0.70 | 0.67 | 2.07 | 2.96 | 2.99 | 3.88 |
The company said, that in the third quarter, Profoto saw a continued challenging market situation combined with a quarter without major product launches. Reported sales decreased by 4.4 percent to SEK 164m (172) with organic growth of -1.1 percent.
The adjusted EBIT result amounted to SEK 30m (35), corresponding to an EBIT margin of 18.4 percent (20.2). The decrease is directly attributable to the lower sales combined with marketing activities for upcoming product launches and strategic investments that initially provide negative economies of scale.
“In line with recent quarters, both professional photographers and large studios continued to act cautiously, as a direct consequence of the uncertain macroeconomic situation regarding equipment purchases and investments,” said Anders Hedebark, president and CEO, Profoto. “The underlying demand for our products therefore remains subdued in all our regions. Nevertheless, our business in North America showed positive development during the quarter, primarily due to selective product-specific marketing activities.
“During the quarter, we continued to strengthen our organization, primarily in product development and marketing, with several important key recruitments. It is gratifying to note that we now have an organization with a cost base that will allow us to continue to strengthen our market position and that will not increase at the same rate as the expected increase in sales.
“Furthermore, we continued to invest in future product launches during the quarter, not least in products intended for film production and LED. We expect to start seeing the results of these investments in the coming quarters.”