Profoto’s second-quarter sales drop slightly

Swedish lighting company Profoto announced second-quarter net sales totaled SEK 182 million, a drop of 2.4 percent from EK 187b million last year. Organic growth totaled -8.5 percent, and the currency effect was 6.0 percent. Profit was essentially level at SEK 36 million.

For six month, next sales were up 7.3 percent to SEK 411 million, compared to SEK 383 million last year.  Organic growth totaled -3.8 percent, the currency effect was 6.4 percent, and the effect of acquisitions was 4.7 percent. Six-month profit increased to 92 million, from SEK 76 million.

Apr–Jun
2023
Apr–Jun 2022 Jan–Jun 2023 Jan–Jun 2022 Jul 2022– Jun 2023 Full year 2022
Net sales, SEKm 182 187 411 383 876 848
Net sales pro forma, SEKm 407 872
Organic growth, % -8.5 -12.7 -3.8 2.7 -4.0 -0.8
EBITDA, SEKm 67 67 158 136 344 322
EBITA, SEKm 61 61 147 125 321 299
EBITA margin, % 33.6 32.6 35.7 32.6 36.7 35.3
EBIT, SEKm 47 48 119 103 265 249
EBIT pro forma, SEKm 103 249
EBIT margin, % 25.8 25.7 28.9 26.8 30.2 29.3
EBIT margin pro forma, % 25.3 28.6
Adjusted EBIT, SEKm 47 46 119 111 265 257
Adjusted EBIT margin, % 25.8 24.5 28.9 28.9 30.2 30.3
Profit/loss for the period, SEKm 36 36 92 76 210 194
Cash flow from operating activities, SEKm 13 39 118 93 262 236
Net debt, SEKm 100 120 100 120 100 4
Net debt/EBITDA LTM 0.29 0.40 0.29 0.40 0.29 0.01
Return on equity, % 70.3 72.4 70.3 72.4 70.3 53.8
Earnings per share 0.89 0.90 2.29 1.89 5.25 4.85

The company said weak demand was caused by customers who are cautious about the uncertain economic environment. The development in the regions was almost unchanged from the previous quarter. China has continued its cautiously positive development, while the rest of APAC and the Americas have experienced cautious demand. In EMEA, Germany and the UK stand out with weaker demand, the company said.

“The market during the quarter has been cautious and how it will develop in the future is difficult to foresee,” wrote Anders Hedebark, president and CEO, Profoto. “We still have a strong belief in reaching our target of +10 percent sales growth over time which will be driven by our three growth themes: Light shaping for professional still photographers, e-commerce workflow solutions, and light shaping for moving images. We continue to invest in marketing and sales as well as in product development to increase sales and EBIT in the longer term. At the same time, we will continue to maintain a high level of cost discipline.”