Financial Statement Release
Year-end report 2016
Sweden, Lund, 2017-02-17 08:00 CET (GLOBE NEWSWIRE) -- Fourth quarter burdened
by previously announced restructuring costs. Looking ahead, strong order book
and gross margin provides confidence.
October – December 2016
-- Net sales amounted to SEK 599.4m (622.6), a decrease
of 3.7 percent.
-- Operating profit (EBIT), including restructuring costs of SEK 20.6m, was
SEK 20.3m (58.7), corresponding to an operating margin of 3.4 percent
-- Order intake amounted to SEK 572.3 m (527.5), an increase
of 8.5 percent.
-- Order book at the end of the period amounted to SEK 307.8m (193.7).
-- Profit after tax for the period amounted to SEK 11.4m (42.4).
-- Earnings per share after tax amounted to SEK 0.49 (1.82).
-- Cash flow from current activities amounted to SEK 50.2m (32.1).
The Board of Directors proposes a dividend for 2016 of SEK 1.00 (-) per share
to the annual general meeting.
During my first weeks at Doro, after meeting with Doro employees and customers,
I am convinced that the organization has the competence needed to move forward
in order to continue delivering on customer expectations and strengthen its
position further in this growing niche market. My first tasks will be to get
the Care business back on track and to focus on group efficiency and improving
time to market, while in parallel developing the company’s growth strategy
Sales in Doro Care have been negatively impacted by the delayed new framework
agreement with SKL, however, 12 month forward looking recurring revenues
increased by 138 percent. In Consumer Devices sales were good but compare
unfavourably to the exceptionally strong fourth quarter 2015. For the full year
2016, sales increased by 7.1 percent while it in the fourth quarter declined by
The acquisition of Trygghetssentralen and committed efforts to strengthen our
product portfolio resulted in an increased gross margin of 42.1 percent in the
fourth quarter (38.5 in Q4 2015). The strength of our current product portfolio
is seen in our order book, which amounted to SEK 307.8m by the end of 2016,
58.9 percent higher than a year ago.
EBIT in the fourth quarter was negatively affected by restructuring costs
mainly related to consolidation of management and R&D functions to our head
office in Lund, but also by lower share of new Doro Care contracts and
increased depreciations due to product rationalisations. EBIT margin reached
2.4 percent for the year and 3.4 percent in the fourth quarter.
Cash flow from current activities in the fourth quarter was SEK 50.2m (32.1).
This improvement is due to intensified focus on cash management and
renegotiated supplier contracts.
Going forward, our expectation for 2017 is that both sales and EBIT will
increase compared to 2016.
Robert Puskaric, President & CEO
For further information, please contact:
Robert Puskaric, President and CEO, +46 (0)46 280 50 05
Magnus Eriksson, CFO, +46 (0)46 280 50 06
Doro’s report to be presented via audiocast
Analysts, investors and the media are welcome to attend a presentation via
http://edge.media-server.com/m/p/yc92rix6 or by telephone at 09:00 CET on
February 17, 2017. Doro’s President and CEO Robert Puskaric and Doro’s CFO
Magnus Eriksson will hold the presentation and answer questions. Before the
start of the presentation, the material will be made available at
Sweden: + 46 (0) 8 505 564 74
France: + 33 (0) 170 750 712
United Kingdom: + 44 (0) 203 364 5374
United States: + 1 855 7532 230
Doro develops telecom products and services for Seniors to lead full and rich
lives: to do things they want to do more easily as well as the things they
thought they might never do. The global market-leader in senior mobile phone,
Doro offers easy-to-use mobile phones and smartphones, mobile applications,
fixed line telephony with loud and clear sound. Within Doro Group, Doro Care
offers social care and telecare solutions for elder and disabled persons for
independent and safe living in their own homes. Doro AB is a Swedish public
company and its shares are quoted on the Nasdaq OMX Stockholm exchange, Nordic
List, Small Companies. Total revenue of SEK 1,959 million (EUR 205 million) was
reported for 2016.
This information is information that Doro AB (publ) is obliged to make public
pursuant to the EU Market Abuse Regulation. The information was submitted for
publication, through the agency of the contact persons set out above, at 08:00
CET on 17 February 2017.