Profoto Interim Report Q2 2023

Continued investment in growth in a cautious market

Financial summary April – June 2023

  • Net sales totaled SEK 182m (187), a drop of 2.4 percent. Organic growth totaled -8.5 percent, and the currency effect was 6.0 percent.
  • EBITA totaled SEK 61m (61), and the EBITA margin was 33.6 percent (32.6).
  • EBIT totaled SEK 47m (48), and the EBIT margin was 25.8 percent (25.7).
  • Profit for the period was SEK 36m (36).
  • Cash flow from operating activities totaled SEK 13m (39).
  • Earnings per share (basic and diluted) totaled SEK 0.89 (0.90).

Financial summary January – June 2023

  • Net sales totaled SEK 411m (383), an increase of 7.3 percent. Organic growth totaled -3.8 percent, the currency effect was 6.4 percent, and the effect of acquisitions was 4.7 percent.
  • EBITA totaled SEK 147m (125), and the EBITA margin was 35.7 percent (32.6).
  • EBIT totaled SEK 119m (103), and the EBIT margin, 28.9 percent (26.8).
  • Profit for the period totaled SEK 92m (76).
  • Cash flow from operating activities totaled SEK 118m (93).
  • Earnings per share (basic and diluted) totaled SEK 2.29 (1.89).


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


Continued investment in growth in a cautious market

The trend of weak demand has continued during the second quarter as our customers act cautiously in an uncertain economic environment. Sales amounted to SEK 182m, corresponding to a decrease of 2.4 percent compared to last year and a negative organic growth of 8.5 percent. EBIT for the quarter amounted to SEK 47m which corresponds to an EBIT margin of 26 percent and is within our financial targets, but in the lower range.

Demand still cautious

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 market during the quarter has been cautious and how it will develop in the future is difficult to foresee. 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.

Profoto offers a complete system

What has made Profoto the world’s leading brand in professional photography is not just the products themselves. It’s how our system of flashes, light modifiers and accessories is assembled and works together. The system is based on Profoto’s understanding of customers’ needs and our ability to innovate and develop products that address those needs. It is what our customers can create and accomplish with our system that has kept Profoto in use by the world’s best photographers and brands since 1968.

Over the past quarter, we have continued to invest in developing the new Profoto system which now extends from offering full creativity with our existing products, to full productivity with automated workflow solutions. Our launch of the Assetflow work- flow software at the beginning of the quarter is a key part of offering customers a complete solution, by increasing their ability to create high quality visual content, both moving and still images. Our cloud-based SaaS software enables us to constantly offer customers updated system functionality.

The system is developed based on our customers’ needs

The new Profoto system is based on the same customer-centric principles as always. The end product is an innovative, flexible, scalable system that provides the ability to plan, manage and execute efficient large-scale production of high-quality and creative visual content.

We develop the system based on our knowledge of world-leading brands in the fashion industry and their needs, which are the most demanding in terms of creativity and image quality. As our customers’ needs change, we follow these needs with new and updated hardware and software. Profoto is the only supplier that can offer both knowledge and tools gathered in a broad overall offer where software and hardware in a smart and powerful way interact to enable scalability and profitable growth for our customers.

The combination of not only offering the most flexible and scalable hardware and software solutions but also the knowledge of how to best use the solutions to drive profitable growth makes us both unique and puts Profoto in a very exciting position for the future.

Sundbyberg, July 21, 2023

Anders Hedebark
President and CEO