Profoto Interim Report Q3 2022

Financial summary July – September 2022

  • Net sales totaled SEK 235m (189), an increase of 23.9 percent. Organic growth totaled 6.5 percent.
  • EBIT totaled SEK 66m (58), an increase of 14.0 percent and the EBIT margin totaled 28.0 percent (30.4).
  • Profit for the period increased to SEK 54m (45).
  • Cash flow from operating activities totaled SEK 64m (43).
  • Earnings per share (basic and diluted) totaled SEK 1.34 (1.11).

Financial summary January – September 2022

  • Net sales totaled SEK 618m (514), an increase of 20.1 percent. Organic growth totaled 5.1 percent.
  • EBIT totaled SEK 169m (133), an increase of 26.5 percent, and the EBIT margin totaled 27.3 percent (25.9).
  • Adjusted EBIT improved to SEK 177m (158). Adjustments for the period were related to acquisition costs of SEK 8m. Adjustments for the period 2021 related to IPO expenses of SEK 25m. The adjusted EBIT margin totaled 28.6 percent (30.7).
  • Profit for the period increased to SEK 130m (98).
  • Cash flow from operating activities totaled SEK 157m (139).
  • Earnings per share (basic and diluted) totaled SEK 3.24 (2.45).
Key ratios, Group
Jul – Sep 2022 Jul – Sep 2021 Jan – Sep 2022 Jan – Sep 2021 Oct 2021 –
Sep 2022
Full year
Net sales, SEKm 235 189 618 514 836 732
Net sales pro forma*, SEKm 207 642 572 890 820
EBIT, SEKm 66 58 169 133 248 212
EBIT pro forma*, SEKm 58 169 132 252 215
EBIT margin, % 28.0 30.4 27.3 25.9 29.6 28.9
EBIT margin pro forma*, % 28.0 26.3 23.1 28.3 26.2
Adjusted EBIT, SEKm 66 58 177 158 255 237
Adjusted EBIT margin, % 28.0 30.4 28.6 30.7 30.5 32.3
Profit/loss for the period, SEKm 54 45 130 98 189 158
Cash flow from operating
activities, SEKm
64 43 157 139 258 240
Net debt, SEKm 65 -46 65 -46 65 -134
Net debt/EBITDA LTM 0.21 -0.19 0.21 -0.19 0.21 -0.50
Earnings per share 1.34 1.11 3.24 2.45 4.73 3.95

* Pro forma includes StyleShoots Holding B.V. as if the acquisition had taken place on January 1, 2021.

CEO comment

A robust quarter for Profoto

The third quarter has been characterized by robust growth and profitability. Sales for the third quarter of 2022 totaled SEK 235m, representing growth of 24 percent compared to the corresponding quarter last year. Organic sales growth totaled 6.5 percent for the quarter and 5.1 percent for the year. The EBIT margin remained strong at 28.0 percent. The component delivery issues reported for the second quarter have been resolved in the third quarter and our deliveries are now operating as planned.

Key markets are doing well
As we previously communicated, an important part of Profoto’s post-pandemic recovery has been the extent to which societies have opened up. It is therefore a positive indication that China, where many regions have had lockdowns, started opening up again during the quarter. The US market showed continued strength in the third quarter, with studio products accounting for a high proportion of sales.

At the same time, there are countervailing forces in the market, such as inflation, rising electricity prices and rising interest rates. The negative outlook for the world economy has led to a cautious approach to investments among freelance photographers. Many e-commerce companies have also seen declining demand, which results in delayed investment decisions. The general concern about the world economy was particularly noticeable in Europe, where we had very low organic growth during the quarter and almost all growth was attributable to the acquisition of StyleShoots. Many distributors in the region held off buying, to avoid building up stocks.

Strong offering to e-commerce companies
E-commerce companies continue to develop their operational processes for creating content for their websites. Good lighting produces better images; this drives sales and reduces returns by bringing out the true colors and textures of garments. Many major brands continue to invest in their own studios to quickly produce content for their online websites and generate continued sales. With Profoto’s products combined with StyleShoots’ solutions consisting of hardware and software, we are well positioned for this trend.

Well equipped for the future
In a time of global unrest, high inflation and geopolitical uncertainty, there is a significant risk that demand will be negatively affected in the short term. However, with a solid balance sheet and strong cash flow, Profoto is well equipped with strong investment power and can continue the strategic work to achieve our goals, even in uncertain times. We continue to develop and market products that are technologically advanced but easy to handle. We do this by listening carefully to our customers and their customers, to understand their needs today and tomorrow, in order to continue to help creative professional photographers realize their ambitions.

Sundbyberg, November 8, 2022

Anders Hedebark
President and CEO

Conference call
Profoto Holding AB (publ) will publish its Interim Report for the third quarter of 2022 on Tuesday, November 8, at 08:00 CET. At 10:00
CET the same day, a webcast teleconference will be held where Anders Hedebark, President and CEO, will present the report together with Petter Sylvan, CFO. 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 in at the following number: SE: +46 8 519 993 83, UK: +44 33 330 092 65, US: +1 646 722 4903.

You can also follow and listen to the presentation and the conference via the following link: