Profoto reports second-quarter results improving
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In its interim financial report, Profoto reported net sales from April-June, 2024, were SEK 196 million (182), an increase of 7.3 percent. Organic growth totaled 7.6 percent, and the currency effect, -0.3 percent. Profit for the period was SEK 28 million, compared to SEK 36 million for the same period last year. For the six-month period January-June, 2024, net sales totaled SEK 366 million, a decrease of 10.9 percent from SEK 411 million the prior year. Organic growth totaled -10.4 percent, and the currency effect, -0.5 percent, for the period. Profit was SEK 55 million, compared to 92 million last year for the same period.
“A number of product launches generated organic sales growth of 8 percent, to SEK 196m, in a market which continued to be cautious,” said Anders Hedebark, president and CEO, Profoto. “Both EMEA and APAC grew by 15 percent, while the Americas declined by 4 percent compared to a strong comparison quarter. The EBIT margin was negatively impacted by costs for marketing activities and product development and amounted to 19 percent (26).
“During the quarter, we launched several new products, most notably our new monolight Pro-D3, but also six new light shapers,” he added. “These new products were well received by retailers and photographers, allowing us to show growth after a number of quarters of declining sales. In connection with the product launches, we have had a very high level of activity in the market and higher marketing costs. As in recent quarters, professional photographers and large studios alike continued to be cautious about investing in equipment, due to the uncertain macroeconomic environment and high interest rates. Underlying demand for our products therefore remains subdued in all our regions.
“I am very proud of the goal-oriented work behind the launches during the quarter and happy that it has paid off. As I mentioned earlier, I see this as the start of a very exciting time with more frequent product launches than we have had in the last two years. The growth during the quarter gives me confidence to continue to invest heavily in innovation and we are planning a number of product launches across all our growth segments in the coming year. To maximize the impact of these planned launches, we are also continuing ongoing development of how we launch and sell our products, especially in the segments of lighting for film production and solutions for large studios.
“At the beginning of June, we presented our first product for film production, the L1600D, during CineGear at Warner Bros studios in Burbank, California. The initial response to our product and positioning was positive, and we see this as the first of a number of products aimed at this segment. We expect to start delivering the L1600D towards the end of the year. With this positive response, we are continuing to invest in additional products for this segment. This effort also requires a new marketing and sales organization, which we are establishing in Los Angeles.
To summarize, the macroeconomic environment remains uncertain, and I am dissatisfied with the low profitability we showed in the quarter. At the same time, I am proud that our organization has worked so determinedly on what we can influence ourselves and that this diligent work has led to product launches and growth.”