January 1–December 31, 2022
Financial summary October – December 2022
- Net sales totaled SEK 230m (218), an increase of 5.6 percent. Organic growth totaled -12.5 percent, and the currency effect was 11.1 percent.
- EBITA totaled SEK 95m (88), and the EBITA margin 41.1 percent (40.2).
- EBIT totaled SEK 80m (79) and the EBIT margin 34.9 percent (36.1).
- Profit for the period totaled SEK 65m (60).
- Cash flow from operating activities totaled SEK 80m (101).
- Earnings per share (basic and diluted) totaled SEK 1.61 (1.50).
Financial summary January – December 2022
- Net sales totaled SEK 848m (732), an increase of 15.8 percent. Organic growth totaled -0.8 percent, and the currency effect was 10.8 percent.
- EBITA totaled SEK 299m (247), and the EBITA margin 35.3 percent (33.8).
- EBIT totaled SEK 249m (212), and the EBIT margin 29.3 percent (28.9).
- Adjusted EBIT totaled SEK 257m (237). 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 margin1 totaled 30.3 percent (32.3).
- Profit for the period was SEK 194m (158).
- Cash flow from operating activities totaled SEK 236m (240).
- Earnings per share (basic and diluted) totaled SEK 4.85 (3.95).
Significant events after the end of the period
- The Board of Directors has proposed a dividend of SEK 4.00 (3.50) per share, corresponding to a total amount of SEK 160m (140).
|Key ratios, Group|
|Net sales, SEKm||230||218||848||732|
|Net sales pro forma, SEKm||–||248||872||820|
|EBITA margin, %||41.1||40.2||35.3||33.8|
|EBIT pro forma, SEKm||–||84||249||–|
|EBIT margin, %||34.9||36.1||29.3||28.9|
|EBIT margin pro forma, %||–||33.9||28.6||–|
|Adjusted EBIT, SEKm||80||79||257||237|
|Adjusted EBIT margin, %||34.9||36.1||30.3||32.3|
|Profit/loss for the period, SEKm||65||60||194||158|
|Cash flow from operating activities, SEKm||80||101||236||240|
|Net debt, SEKm||4||-134||4||-134|
|Net debt/EBITDA LTM||0.01||-1.44||0.01||-0.50|
|Earnings per share||1.61||1.50||4.85||3.95|
Good profitability ended a robust 2022
Profoto’s fourth quarter was characterized by weak demand and cautious customers, although profitability was good. Sales totaled SEK 230m, representing growth of six percent compared to the corresponding quarter in the previous year. For the full year 2022, the corresponding figures were SEK 848m and 16 percent. Organic sales growth totaled -12.5 percent for the quarter and -0.8 percent for the year. The EBIT margin was strong at 35 percent in the quarter and 29 percent for the full year.
Continued market uncertainty
After a robust third quarter, however, the fourth quarter was weak. The uncertainty in the market, characterized by interest rate hikes, inflation and higher electricity prices, has resulted in a wait-and- see attitude among our customers during the quarter.
The caution shown by self-employed photographers and consumers when it comes to spending in these times has been noticeable. We have seen greater caution, which has also prompted resellers to reduce their stocks. We also saw that some major investments were put on hold, affecting demand for our automated solutions which have higher price levels than our modular solutions.
In the third quarter, we noted that Europe, in particular, was affected by the macroeconomic situation. In the fourth quarter, we saw a slight increase in positivity in that region, while develop- ments in the US slowed. Japan remained strong and China was negatively affected by the pandemic.
Profoto delivers a profitable year
The quarter was tough for Profoto and we also faced strong comparables from the fourth quarter of 2021. Countries were beginning to open up in earnest after the pandemic, and the war in Ukraine had not yet broken out. Everyone was preparing
for reopenings and physical gatherings such as weddings, parties and events, which gave a boost to sales.
Sales for the full year 2022 totaled SEK 848m. This is above the target of SEK 800m that we said we would reach by the end of 2023 at the time of our IPO in July 2021. However, we benefited from exchange rates gains and from the acquisition we made in the second quarter. The adjusted EBIT margin for the full year 2022 was 30 percent, which was within our target range of 25 to 30 percent. We are proud to have continued to deliver high profitability. The growth in sales for our acquisition has also been affected by the more difficult market. At the same time, we continue to work on integration and establishing a sales organization in the US. We have recruited a sales team and are in the process of opening a showroom in Brooklyn, New York, where we can demonstrate our full product range. From automated solutions to our modular products.
Continued focus on innovation
We continue to focus on product development in our focus areas and where we are unique. We clearly see the underlying structural trends of market growth.
- In e-commerce, the importance of creating high quality visual content, images and moving content is becoming ever more important for staying competitive.
- Building strong fashion brands requires differentiation – as well as strong images and films.
- For events such as weddings, where there is some sign of an upturn, skilled photographers are the key to creating memo- ries for life. And how does a photographer stand out? Through fantastic light, of course.
Several interesting growth opportunities
Although the market outlook is uncertain in the near future, we are working for what we believe in by constantly increasing our innova- tion. This is reflected in our higher investment rate in 2022, with 10 percent of sales being invested in research and development. Our strategy continues to be to strengthen our position as a premium brand through product development. The professional imaging market continues to grow, and there are several interesting sub- markets in which Profoto has good growth opportunities, both organically and through acquisitions.
I would like to take this opportunity to thank all our dedicated staff for their drive and commitment during the year. I look forward to seeing what we can achieve together in 2023!
Sundbyberg, February 22, 2023
President and CEO