Regulatory

Interim Report Q3 2021

January 1–September 30, 2021

Financial summary July – September 2021

  • Net sales increased to SEK 189m (126), an increase of 50.4 percent. Adjusted for currency effects, net sales increased by 52.8 percent.
  • EBIT amounted to SEK 58m (-48) and the EBIT margin to 30.4 percent (-38.0).
  • Adjusted EBIT improved to SEK 58m (24). No adjustments were made in the quarter. Adjustments for the third quarter of 2020 related to government grants (SEK -3m), impairment of inventories (SEK 48m), and impairment of non-current assets (SEK 27m).
  • Adjusted EBIT margin for the quarter was 30.4 percent (18.9).
  • Profit for the period increased to SEK 45m (-39).
  • Cash flow from operating activities totaled SEK 43m (35).
  • Earnings per share (before and after dilution) amounted to SEK 1.11 (-0.99).

Financial summary January – September 2021

  • Net sales increased to SEK 514m (355), an increase of 44.9 percent. Adjusted for currency effects, net sales increased by 54.3 percent.
  • EBIT amounted to SEK 133m (-58) and the EBIT margin to 25.9 percent (-16.4).
  • Adjusted EBIT improved to SEK 158m (8). Adjustments for the period related to IPO expenses of SEK 25m. Adjustments for the third quarter of 2020 related to government grants (SEK -9m), impairment of inventories (SEK 48m), and impairment of fixed assets (SEK 27m).
  • Adjusted EBIT margin for the period was 30.7 percent (2.2).
  • Profit for the period increased to SEK 98m (-50).
  • Cash flow from operating activities totaled SEK 139m (79).
  • Earnings per share (before and after dilution) amounted to SEK 2.45 (-1.25).

Significant events July – September 2021

  • The Parent Company Profoto Holding AB (publ) was listed on Nasdaq Stockholm’s Mid-cap list with its first trading day on July 1, 2021.
  • On July 5, 2021, the former Parent Company Profoto Invest AB transferred all remaining shares in Profoto Holding AB (publ), which were not sold at the listing, to the owners of Profoto Invest AB.
  • Product launch of the B10X and B10X plus, an upgrade to the B10, which is an off-camera flash that can be used for both still photography and video.

 

Key ratios
Group
2021
July – Sept
2020
July – Sept
∆% 2021
January – Sept
2020
January – Sept
∆% 2020
full year
Net sales, SEKm 189 126 50.4 514 355 44.9 528
EBIT, SEKm 58 -48 133 -58 -12
EBIT margin, % 30.4 -38.0 25.9 -16.4 -2.2
Adjusted EBIT, SEKm 58 24 142.5 158 8 1896.6 56
Adjusted EBIT margin, % 30.4 18.9 30.7 2.2 10.6
Net profit for the period, SEKm 45 -39 98 -50 -17
Cash flow from operating
activities, SEKm
43 35 23.9 139 79 76.2 153
Net debt, SEKm -46 -30 52.0 -46 -30 52.0 -91
Net debt/EBITDA -0.19 -0.45 -0.19 -0.45 -1.20
Earnings per share 1.11 -0.99 2.45 -1.25 -0.44

 

CEO comment

Another good quarter with growth and a strong result

The third quarter was good, as expected, for Profoto. As restrictions ease, and more countries open up, the demand for professional photography increases which also increases the demand for light shaping tools.

Historically, under more normal circumstances, the third quarter has been a slightly weaker quarter for Profoto. This year, however, it is clear that the reopening of societies has brought us continued good growth. Activities such as travel, weddings and commercial photography drive the underlying demand for lighting used in professional photography. In the third quarter, such activities could begin, or at least be planned, in Europe and the US. Consequently, dealers and rental companies have been more optimistic and have started to place more orders. Whether this is in part a next stage inventory build-up, or will generate further resale is difficult to predict at this stage.

Our launches during the year, the Pro 11 (a generator with optimal speed and power) in the first quarter and the B10 and B10X (an off-camera flash that can be used for both still photography and video) in the third quarter, have been well received and have generated good sales. We also increased prices further on some products in the latter part of the quarter.

During the pandemic, e-commerce has become an increasingly important part of consumer demand. This trend will probably persist even when life is normalized. We can clearly see that our products that are used for this purpose have had an extra boost in sales. These pure e-commerce companies need to improve and industrialize their processes for photographing and publishing product images. The trend also applies to companies that previously relied mainly on physical stores. Many companies with well known brands are now investing in building their own studios with professional photographers and efficient processes to quickly present and publish new products. For example, displaying and selling apparel online requires good photos. Good photos require good lighting. Consumers want to see what the fabrics look like in detail, and they also want to know what the garments look like on a model. Our products work easily for both moving and still images, often taken in the same studio.

Our different regions varied in performance. In the US, activity continued to grow, as we saw already in the second quarter. In Europe, we finally saw communities reopen in the third quarter, which meant good growth for us. APAC continued to be different; for example, Japan has been under severe restrictions, which will hopefully change in the future.

While we are proud and pleased to deliver another strong quarter, we are not satisfied. We are still some ways from where we were before the pandemic. In addition, like many others, we are concerned about the impact of supply chains and component shortages in the future. So far, the effects of this situation have been limited and manageable.

This was our second quarterly report as a listed company. It is a good feeling to know that we are following the path we set out in our presentations, what we have said and written, including in our prospectus, and how we presented our financial targets.

Stockholm October 27, 2021

Anders Hedebark
President and CEO

For further information, please contact

Petter Sylvan, CFO
petter.sylvan@profoto.com
+46 (0) 703 08 8060

Gunilla Öhman, Investor Relations
gunilla.ohman@profoto.com
+46 (0) 707 63 8125

Conference call

Profoto Holding AB (publ) will publish its interim report for the third quarter of 2021 on Wednesday, October 27, at 08:00 CET. At 10:00 a.m. the same day, a webcast teleconference will be held where President and CEO Anders Hedebark will present the report together with CFO Petter Sylvan. The presentation will be followed by a Q&A session. The presentation will be held in English. Those wishing to participate in the conference call in conjunction with the presentation should call the following numbers from Sweden: +46 856 642 705 UK: +44 333 300 92 67 US: +1 63 191 314 22 US PIN: 45069895#. You can also follow and listen to the presentation and the conference at the following web link: https://tv.streamfabriken.com/profoto-q3-2021