21.10.2021 07:00:01 CEST | StrongPoint | Half yearly financial reports and audit
reports / limited reviews
(Oslo, Norway, 21 October 2021) StrongPoint ASA (StrongPoint, OSE: STRO)
reported revenues of NOK 196.4 million in the third quarter of 2021, down from
NOK 215.2 million in the same quarter in 2020 due to tight global supply chains,
lower than anticipated grocery locker roll-outs and last year's unusually large
and quickly deployed ESL project. EBITDA ended at NOK 8 million (21.4) impacted
by investments in e-commerce and lower sales. StrongPoint reiterates the
financial ambition for 2025.
"The fundamentals and long-term prospects for grocery retail technology and
StrongPoint's solutions continue to be positive. However, unprecedented recent
global turbulence is impacting us and prolonging sales and delivery cycles.
Together these recent trends are negatively impacting our short-term financial
results. Whereas we are on a journey to shift more of our business to be
recurring, we still are to a large extent a project-driven company. Hence,
comparing the financial results this autumn with last year's record high project
activity level does not alone give a correct assessment of our progress,
achievements and long-term product-market fit," says Jacob Tveraabak, Chief
Executive Officer of StrongPoint.
StrongPoint reported revenues of NOK 196.4 million (215.2) in the third quarter
of 2021 and an EBITDA of NOK 8 million (21.4). The EBIT was NOK 1.4 million
(14.8) and EBT was NOK minus 0.5 million (16.4). Profit from discontinued
operations was NOK 165.5 million (3.8) linked to the divestment of Labels
business area in the quarter. The cash position ended at NOK 186.2 million.
The topline decline was due to postponed CashGuard installations related to the
global shortage of components, lower than anticipated grocery locker roll-outs
to new markets and last year's unusually large and quickly deployed ESL project
in Norway. The EBITDA* reduction reflects increased investments in
e-commerce-related R&D, sales resources, marketing activities and IT security as
well as lower than expected sales.
"Our engagement with top grocery companies in Spain is deeper than ever in the
wake of the Glovo partnership announcement. In the quarter, we won and initiated
the roll-out of our E-commerce Order Picking solution to a top ten grocery
retailer. Furthermore, our first ever self checkout solution was also installed
within the GM Food retail chain. We remain very positive on the long-term
prospects of the Spanish market. In September we announced our partnership with
AutoStore which provides us with the rights to sell, install, service and
support AutoStore facilities in the Nordics and Baltics. Being selected by such
an esteemed technology provider as the world's first grocery distributor of its
fulfilment solution is a testament to our world-class solutions, customer depth,
expertise and team of which I am extremely proud," Tveraabak continues.
In a strategy update session in the first quarter of 2021, StrongPoint
reconfirmed its target of becoming retailers trusted in-store and e-commerce
technology provider, with a strategic ambition of NOK 2.5 billion in revenues
and EBITDA margins of 13-15 % in 2025.
"Although an isolated choppy quarter and autumn I am excited and confident on
our journey ahead. Our investments in product development, sales resources and
marketing will continue and further materialize. The depth and relevance with
our grocery customers and customer prospects in target markets is as strong as
ever, and we are just starting to get known and be respected amongst some of the
largest grocery retailers internationally. With all this, I continue to believe
we have all the reasons to be optimistic about achieving our 2025 strategic
ambitions," Tveraabak concludes.
StrongPoint ASA will present the financial results for the third quarter and
year to date of 2021 at 08:15 CET Thursday 21 October 2021. The link to the
presentation and webcast can be found on StrongPoint's website and below:
*EBITDA and other alternative performance measures (APMs) are defined and
reconciled to the IFRS financial statements as a part of the APM section of the
second quarter 2021 financial report on page 26.
This information is considered to be inside information pursuant to the EU
Market Abuse Regulation and is subject to the disclosure requirements pursuant
to section 5-12 of the Norwegian Securities Trading Act. This stock exchange
announcement was published by Ann Merete Stabell, group controller in
StrongPoint ASA, on October 21 2021 at 07:00 CET.
StrongPoint is a retail technology company that provides solutions to make shops
smarter, shopping experiences better and online grocery shopping more efficient.
With over 400 employees in Norway, Sweden, the Baltics and Spain and together
with a wide partner network, StrongPoint supports businesses in more than 20
countries. StrongPoint provides in-store cash management and payment solutions,
electronic shelf labels, self-checkouts, task and labor management software,
click & collect temperature-controlled grocery lockers, in-store and drive-thru
grocery pickup solutions and, grocery order picking solutions. StrongPoint is
headquartered in Norway and is listed on the Oslo Stock Exchange with a revenue
of 1bn NOK [ticker: STRO].
* Hilde Horn Gilen, CFO StrongPoint ASA, +47 920 60 158,
Download announcement as PDF.pdf -
StrongPoint_Q3_2021 print version.pdf -
Q3 2021 presentation.pdf -
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