Third Quarter (July-Sep 2022)

Net sales amounted to TSEK 97,580 (75,938), which is an increase of 28.5 % compared to the same period last year.

The gross margin amounted to 58.9 % (60.2).

Operating profit before depreciation and amortization (EBITDA) amounted to TSEK 24,585 (20,082), which corresponds to an operating margin before depreciation and amortization of 25.2 % (26.4).

Operating profit (EBIT) amounted to TSEK 14,592 (12,736), which corresponds to an operating margin of 15.0 % (16.8).

Earnings per share before dilution amounted to SEK 1.07 (0.92).

(Comparative figures in parentheses refer to the corresponding period in the previous year.)

Jan-Sep 2022

Net sales amounted to TSEK 303,278 (230,027), which is an increase of 31.8 % compared to the same period last year.

The gross margin amounted to 58.8 % (56.7).

Operating profit before depreciation and amortization (EBITDA) amounted to TSEK 83,047 (54,460), which corresponds to an operating margin before depreciation and amortization of 27.4 % (23.7).

Operating profit (EBIT) amounted to TSEK 55,037 (33,992), which corresponds to an operating margin of 18.1 % (14.8).

Earnings per share before dilution amounted to SEK 4.03 (2.47).

(Comparative figures in parentheses refer to the corresponding period in the previous year.)

Comments from the CEO

Strong growth and increased profitability

Our revenue grows organically by 29 % during the third quarter compared to the same period last year. We see continued increased profitability with a gross margin of 59 % for the period.

The value of installations is the best way to measure underlying growth. We can see an increase in installation growth of as much as 38 %. The Swedish market shows a continued stable growth of 17 % when compared to the same period last year. We also see a very strong installation growth in our international markets, where Norway increased by 136 %, followed by 90 % in Finland and 217 % in The Netherlands.

Our strategy is to establish in several new markets with just a few salespersons per country, making the establishment phase cost efficient and quickly profitable. In parallel with this, we continue to adapt country specific products for existing markets with the ambition to reach the trends we have seen in Norway.

Our participation at the German electricity fair, Light + Building, in October means we are taking the next steps towards a broader international launch. We presented a range of exciting products specifically tailored for the European market. Some of the products presented were the JAL-01 puck for controlling blinds and the wireless puck WIN-01, which enables wireless control for most light switches available on the market.

We are launching our long-awaited driver, the LED-75 for LED strips. It is scheduled to reach our customers in the fourth quarter of 2022. With a range of products close to launching for both existing and new markets, we have the ambition to strengthen our product portfolio and begin a broad international launch. We look forward to an exciting 2023.

Despite the troubled global situation, we currently see no effect on our installations during the third quarter. The component situation means continued challenges, but we see indications that the delivery capacity of several of our suppliers is increasing. We are carefully following the development and will adjust our stock levels as the situation improves. To secure deliveries, we have had significantly higher stock levels than usual.

In summary, the team delivered a strong quarter on our journey of multidimensional growth with increased profitability.

Babak Esfahani

CEO