This is a translation of the Swedish interim report. If there should be any discrepancies, the Swedish language version governs.
SECOND QUARTER, APRIL -
- Net sales increased by 10.2%, or 7.9% FX adjusted, to MSEK 86.5 (78.5)
- Gross profit increased by 9.3%, or 6.5% FX adjusted, to MSEK 67.0 (61.3)
- EBIT was MSEK 9.6 (11.7)
- Earnings after tax was MSEK 9.0 (10.7)
-
Earnings per share was
SEK 1.14 (1.35)
FIRST HALF YEAR, JANUARY -
- Net sales increased by 10.9%, or 8.8% FX adjusted, to MSEK 166.4 (150.1)
- Gross profit increased by 12.2%, or 9.5% FX adjusted, to MSEK 129.1 (115.1)
- EBIT was MSEK 18.5 (18.2)
- Earnings after tax was MSEK 16.9 (18.0)
-
Earnings per share was
SEK 2.15 (2.28)
IMPORTANT EVENTS
DURING THE PERIOD
- The AGM on
May 19th electedDan Foreman and Anne Årneby as new members to Nepa's board of directors. The previous board members P-O Westerlund andMartin Burkhalter had declined re-election. Lena Landahl was appointed as new Head of HR.Jack Suliman was recruited as new Chief Information Officer (CIO).
AFTER THE PERIOD ENDED
- Ferry Wolswinkel was recruited to the newly established role Chief Revenue Officer (CRO) and starts on the 3rd of October
A WORD FROM OUR CEO
Nepa's net sales increased by 10.2 percent or 7.9 percent currency adjusted in the second quarter compared to the corresponding quarter last year, despite increased uncertainty in the world around us. Our customers' willingness to invest remained good in general in most of our markets. In
Gross profit increased by 9.3 percent to
Our investments for the future affected costs and thus our margins during the quarter. Among other things, we increased our sales and marketing investments. Of Other external costs totalling
On the revenue side we gradually introduced price adjustments in both Q1 and Q2 to compensate for increased costs. The price adjustments will take effect gradually as our long-term customer agreements are renewed. We continue our growth efforts by strengthening management and sales capacity, including the recruitment of a Chief Revenue Officer (CRO).
Cash flow from operating activities amounted to
Strengthened position
I am pleased to announce that during the quarter we completed the transition of our business, the legacy clean-up, as planned. As we have previously communicated, we have taken measures for increased internal efficiency and a more streamlined product range to ensure a stable high proportion of recurring revenue, mainly from tracking-based services. We are now focusing on further strengthening profitability and growth.
Outlook
It is gratifying to once again be able to report record sales and gross profit levels, but it is not something we are satisfied with. We can grow both faster and with higher scalability, which Nepa will prove when we now take the next step in our strategic plan further described in the Q1 report.
We are on the right track and continue to expect that we will start to see the effects of our investments by the end of the current year. At the same time, it is important to emphasize that we have a tight cost control and can pull the brakes in case of a deteriorating market climate, however this is not something we see a need for now. Although our investments are pressuring our margins this year, we are convinced that they will create value going forward. Nepa enters the expansion phase with a scalable and automated platform, a strong track record among our customers, and a clear strategy for the future.
CEO
For further information, please contact:
+46 708 226 618 +46 708 788 019
ub@nepa.com michael.wallin@nepa.com
This is a translation of the Swedish interim report. If there should be any discrepancies, the Swedish language version governs. The Swedish version is information that
Nepa, a leader in Brand Experience and Marketing Optimization, helps some of the world's most reputable brands drive growth through data. This is achieved by combining first-class research, cutting-edge technology, deep expertise and innovative solutions. Headquartered in
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