CTEK AB: Interim report Q1: Clear effects of cost reductions and positive cash flow but generally lower market activity hits the volumes
Net sales amounted to SEK 246 million (237). Net sales declined 4 percent organically.
The EVSE share of net sales increased to 39 percent (17) and amounted to SEK 96 million (37).
Adjusted EBITA declined to SEK 7 million (22), corresponding to amargin of 3.0 percent (9.3).
Net profit for the period amounted to SEK -18 million (profit: 11) and earnings per share after dilution amounted to SEK -0.35 (0.22).
Cash flow from operating activities amounted to SEK 36 million (-1).
CTEK carried out a rights issue of 350 SEK million in March that was fully subscribed.
"The first quarter's financial performance was in line with what we have previously communicated. Our work on re-establishing the conditions for achieving a real improvement in profitability by reducing our cost base and tied-up capital is continuing with undiminished energy. Moreover, substantially reduced costs for EVSE products in the Original Equipment division are a top priority. It is gratifying that our underlying gross margins are stable for the existing product range, despite the negative impact of the sharply changed product mix on the Group's gross margins in the quarter. Organic sales declined 4 percent and the adjusted EBITA margin fell to 3 percent", says Ola Carlsson, acting President and CEO, CTEK.
However, although CTEK are already seeing the effects of the actions taken, the general economic slowdown and a more restrained private consumption will negatively affect volumes and results during the second quarter.
"As a result of a weaker general economy and lower purchasing power, we see a clear slowdown in market activity with lower volumes as a result. This applies not least within our Aftermarket division, which targets private consumers. We also see that our EVSE volumes within the Original Equipment division in 2023 will be significantly lower than previously estimated. Our assessment is now that the second quarter's net sales and profit will be lower than the first quarter of the year before we can see an improvement. The target of generating a positive cash flow for the full-year 2023 still stand", says Ola Carlsson, acting President and CEO, CTEK.
To increase CTEKs financial flexibility and realise a considerable potential the company has carried out a rights issue of 350 SEK million in March that was fully subscribed.
Today, 10 May at 09:00 CEST, CTEK will hold an audiocast in English. CTEK is represented by acting CEO Ola Carlsson and CFO Thom Mathisen, who present the full year report and answer questions. To participate or for further information:
https://ir.financialhearings.com/ctek-q1-2023
Before its publication, this information was inside information and is such that CTEK AB is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact persons set out below, on 10 May 2023 at 07:45 CEST.