Financial summary January–March 2025

• Profoto announces results for the first quarter of the year in accordance with preliminary figures published on April 15, 2025.
• Net sales totaled SEK 164m (171), down 3.7 percent. Organic growth totaled -4.7 percent, and the currency effect was 1.0 percent.
• EBIT totaled SEK 17m (34), and the EBIT margin was 10.4 percent (20.1).
• Profit for the period was SEK 3m (27).
• The return on operating capital totaled 28.0 percent (38.9).
• Cash flow from operating activities totaled SEK 58m (13), mainly attributable to a refund of preliminary taxes and a decrease in accounts receivable.
• Earnings per share (basic and diluted) totaled SEK 0.08 (0.66).

Significant events after the end of the period

• The cost base will be reduced by approximately 20 percent, corresponding to an improved cash flow of SEK 60-80m, and an improved EBIT of SEK 30m, on an annual basis. The full impact of the savings measures is expected to become visible in the second half of 2025.
• In view of the current market situation, the Board of Directors proposes to withdraw the previous proposal regarding the dividend for 2024. The proposal for a share buy-back program of up to 10 percent of the shares until the 2026 AGM remains. This proposal increases Profoto’s financial flexibility.

Results Affected by Weak Demand in the US
In the first quarter of 2025, Profoto’s net sales totaled SEK 164m (171), down 3.7 percent compared to the same quarter last year. The EBIT margin was 10.4 percent (20.1). EBIT was affected by a significant decline in sales in the United States and negative currency effects. These figures are in line with the preliminary figures communicated on April 15. The weak performance in the United States is mainly explained by the current economic situation, which has created uncertainty and reduced willingness to invest among customers. In particular, retailers have become more cautious as their customers have held off on placing orders. Our other geographical markets showed some growth compared to the previous year. During the quarter, the Swedish krona strengthened, particularly against the US dollar, which had negative currency effects. Adjusted for this, the EBIT margin amounted to 15 percent.

Adjusting the cost base with continued focus on sales and product development
Over the past year, we have carried out three successful flash launches and built a future-proof flash portfolio. With a largely renewed product portfolio in flash, and the recently launched L1600D LED, we can now focus and streamline product development while maintaining competitiveness. In light of the earnings trend, we have chosen to act decisively with cost reductions to secure our future profitability. However, in line with our strategy we continue to invest in LED products in order to take a premium position in the film and LED market, and to maintain our leading position in innovative lighting solutions. The cost base will be reduced by approximately 20 percent, corresponding to an improved cash flow of SEK 60–80m, and an improved EBIT of SEK 30m, on an annualized basis. The full impact of the savings measures is expected to be visible in the second half of 2025.

New US tariffs lead to price increases
In April, new tariffs were introduced in the United States, which means that our products are now subject to an additional tariff of at least 10 percent. While the majority of our products are manufactured in Asia and Europe, our accessories – which account for around 10 percent of our total sales – are made in China. Some other products contain components originating in China, but these account for a smaller share of the total value content. To protect our margins and long-term profitability, we intend to implement price increases on the US market. We see it as a necessary step to continue investing in quality, innovation and customer value.

Focus on financial stability – previous dividend proposal withdrawn
The Board of Directors has decided to withdraw the previously communicated dividend proposal. The decision has been taken as a precautionary measure in view of the current market situation. The previously proposed share buy-back program remains in place, reflecting our confidence in Profoto’s long-term performance.

Focus more important than ever
In times of turmoil and uncertainty, focus is more important than ever. Our focus on sales, cost adjustments, and entry into the market segment film, creates a clear vision of our direction going forward. My faith in Profoto’s ability to adapt to current conditions is greater than ever. We remain strong with a clear strategic direction, a world-leading brand, and an innovation-driven organization.

Sundbyberg, May 7, 2025

Anders Hedebark
President and CEO

Financial calendar
AGM 2024 – May 7, 2025
Interim Report Q2 2024 – July 18, 2025
Interim Report Q3 2024 – October 23, 2025

Conference call
Profoto's interim report for the first quarter 2025 will be published on May 7, 2025, at 08:00 CEST. A web-casted telephone conference will be held at 09:00 CEST the same day where CEO Anders Hedebark together with acting CFO Linus Marmstedt will present the report. The presentation will be followed by a Q&A session. The presentation will be held in English and can be followed on the web or over the phone. If you wish to participate via webcast please use the link below.
https://profoto.events.inderes.com/q1-report-2025

If you wish to participate via teleconference, please register on the link below. After registration you will be provided phone numbers and a conference ID to access the conference. You can ask questions verbally via the teleconference.
https://conference.inderes.com/teleconference/?id=5009583

The presentation material will be available before the conference begins on Profoto’s web via http://investors.profoto.com. On this page, it will also be possible to access the recorded version of the webcast after it is finished.