January 1– December 31, 2021
Financial summary October – December 2021
- Net sales totaled SEK 218m (173), an increase of 25.7 percent. Adjusted for currency effects, net sales increased by 24.3 percent.
- EBIT amounted to SEK 79m (46) and the EBIT margin to 36.1 percent (26.6).
- Adjusted EBIT improved to SEK 79m (48). No adjustments were made in the quarter. Adjustments for the fourth quarter of 2020 related to the repayment of government grants (SEK 2m).
- Adjusted EBIT margin for the quarter was 36.1 percent (27.7).
- Profit for the period increased to SEK 60m (33).
- Cash flow from operating activities totaled SEK 101m (73).
- Earnings per share (basic and diluted) totaled SEK 1.50 (0.82).
Financial summary January – December 2021
- Net sales increased to SEK 732m (528), up 38.6 percent. Adjusted for currency effects, net sales increased by 44.1 percent.
- EBIT amounted to SEK 212m (-12) and the EBIT margin to 28.9 percent (-2.2).
- Adjusted EBIT improved to SEK 237m (56). Adjustments for 2021 related to IPO expenses of SEK 25m. Adjustments for 2020 related to government grants (SEK -7m), impairment of inventories (SEK 48m), and impairment of fixed assets (SEK 27m).
- Adjusted EBIT margin for the full year was 32.3 percent (10.6).
- Profit for the period increased to SEK 158m (-17).
- Cash flow from operating activities totaled SEK 240m (153).
- Earnings per share (basic and diluted) totaled SEK 3.95 (-0.44).
Significant events after the end of the period
- The Board of Directors proposes a dividend of SEK 3.50 per share, corresponding to a total amount of SEK 140m
- The previous financial target for net sales, to “over time, achieve a constant currency annual organic growth in net sales of above 10 percent and reach net sales exceeding SEK 800 million by 2023” has been updated since the company believes the target will be achieved earlier. The target has been updated to: “over time, achieve a constant currency annual organic growth in net sales of above 10 percent”.
| Key ratios Group |
||||||
| 2021 Oct-Dec |
2020 Oct-Dec |
∆% | 2021 Jan-Dec |
2020 Jan-Dec |
∆% | |
| Net sales, SEKm | 218 | 173 | 25.7 | 732 | 528 | 38.6 |
| EBIT, SEKm | 79 | 46 | 70.3 | 212 | -12 | – |
| EBIT margin, % | 36.1 | 26.6 | – | 28.9 | -2.2 | – |
| Adjusted EBIT, SEKm | 79 | 48 | 63.9 | 237 | 56 | 323.2 |
| Adjusted EBIT margin, % | 36.1 | 27.7 | – | 32.3 | 10.6 | – |
| Profit/loss for the period, SEKm | 60 | 33 | 82.9 | 158 | -17 | – |
| Cash flow from operating activities, SEKm | 101 | 73 | 38.4 | 240 | 153 | 56.9 |
| Net debt, SEKm | -134 | -91 | – | -134 | -91 | – |
| Net debt/EBITDA | -1.44 | -1.47 | – | -0.50 | -1.20 | – |
| Earnings per share | 1.50 | 0.82 | 82.9 | 3.95 | -0.44 | – |
CEO comment
Increased demand for high-quality images – light is crucial
We are proud to present a good fourth quarter. Sales grew by 26 percent compared with the same period last year. We have noted a structural increased need for high-quality images — especially in photography for e-commerce. This also drives an increasing need for light which is very exciting!
Our customers are often high-profile fashion companies that shoot images of models in studios. The big difference now is that the images don’t just end up on a full-page spread in a fashion magazine, but are also used online. This trend derives from closing of shops in well-established locations during the pandemic which has resulted in them accelerating their e-commerce, which will in turn increase the need for more high-quality images. These images may be used on the company’s own website, on other e-commerce retailers, and/or on social media. Regardless, high-quality images are needed for pure product photography, on models, for marketing in social and traditional media. The images need to be as realistic as possible to increase sales conversions and reduce costly returns for those selling and marketing the products. The quality and details in the images of the products regarding fabrics, materials, etc, are essential. Having the right light and lighting when taking photos is crucial to the quality of the images!
As we said previously, our sales correlate with how our communities reopen. This quarter, the picture was rather mixed. In APAC, for example, Japan opened first, but then closed again at the end of the quarter, while China was relatively closed throughout the period. In EMEA, many countries opened in early autumn, only to reintroduce restrictions to varying degrees toward the end of the year. Optimism was high in Americas, one of our strongest performing regions. At the same time, this region lost the most sales in 2020, which means it would have the largest recovery.
Thanks to our strong sales performance, we reviewed the financial target set at the time of our IPO in July 2021. We said back then that we expected to reach a level of over SEK 800m in sales by the end of 2023. Since we have already reached SEK 732m, and strongly believe in our target of over time, to achieve a constant currency annual organic growth in net sales of above 10 percent, we anticipate reaching a level above SEK 800m earlier than that.
The profit we achieved, measured in EBIT or EBIT margin, was very good – stronger than our financial target. I want to clarify that we do not intend to stay at this level in the long term, since we plan to invest more in marketing and product development to maintain our long-term growth. I am proud that we have managed to achieve this excellent performance despite the component shortages and logistics problems that are still present. Many employees have dedicated their full focus to these challenges, which are not over yet.
In conclusion, 2021 has been a very intense and interesting year. Like everyone else, I hope that we now can leave the pandemic and restrictions behind us and live a freer life together!
I would like to take this opportunity to thank everyone who has joined us on our journey during the year: our employees for their hard work and engagement, and all the new investors who believe in us and support us.
Stockholm February 10, 2022
Anders Hedebark
President and CEO
Conference call
Profoto Holding AB (publ) will publish its interim report for the fourth quarter of 2021 on Thursday, February 10, at 08:00 CET. At 09:00 CET 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 question and answer 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: +46 856 642 693 UK: +44 333 300 92 74 US: +1 64 672 249 03. You can also follow and listen to the presentation and the conference at the following web link: https://tv.streamfabriken.com/profoto-q4-2021.