Financial results for the first quarter of 2020
April 29, 2020
StrongPoint ASA reported revenues of NOK 279.8 million in the first quarter of 2020, down from NOK 288.2 million in the same quarter in 2019. The company’s EBITDA in the period came in at NOK 16.5 million (27.7), impacted amongst others by a negative currency effect of NOK 4 million. StrongPoint experiences short-term effects from the COVID-19-situation but reiterates the 2025 ambition of NOK 2.5 billion in revenues and EBITDA margins of 13-15%.
“In the last few weeks, our main focus has been upholding the highest level of safety for our employees, customers and business partners as part of the joint pan-national efforts to protect vulnerable groups. I would like to express my gratitude to the entire StrongPoint team and to our partners for their dedication and hard work to rapidly adapt to a new reality, to mitigate the effects of this pandemic and to help others where we can contribute. Despite the COVID-19 situation, StrongPoint delivered growth in two of three business areas in the first quarter and I am proud of what we have achieved during these difficult times,” says Jacob Tveraabak, Chief Executive Officer of StrongPoint.
StrongPoint reported revenues of NOK 279.8 million (288.2) in the first quarter of 2020 and an EBITDA of 16.5 million (27.7), were the segment Retail Technology delivered a growth of four per cent. A negative currency effect of NOK 4 million impacted the EBITDA result in the period. Reported operating profit was NOK 4.5 million, down from NOK 14.1 million in the corresponding quarter in 2019, while the cash flow from operating activities ended at NOK -4.9 million (10.7). The company had a cash balance of NOK 54 million at the end of the quarter and flexible credit facilities to cover short-term changes in working capital. StrongPoint provided a COVID-19 business update 23 March 2020, outlining the operational and financial effects from the current situation.
“We delivered solid financial performance in the first quarter despite the negative COVID-19 effects at the end of the period and have a solid financial position. StrongPoint plays a vital role in providing safe and efficient solutions for the grocery retailers, and my colleagues have gone the extra mile to safeguard uninterrupted supply and services for our customers in this situation. StrongPoint as a company has also been affected by travel restrictions and social distancing measures in various markets. As an example, the normal service program for non-grocery stores in Spain is not possible to maintain in a lockdown situation. We have implemented short-term measures to mitigate these effects while maintaining the momentum when resuming to a more normalized situation,“ Tveraabak continues.
In a strategy update session in the first quarter of 2020, StrongPoint outlined the strategy and ambitions for the company towards 2025. As a foundation for creating shareholder value, the growth strategy is based on profitable and organic growth, cost control and a solid balance sheet, targeting revenues of NOK 2.5 billion and EBITDA margins of 13-15% in 2025.
“The COVID-19 situation has also emphasized the many advantages of StrongPoint´s solutions and we are experiencing an increased interest from major retailers for our entire e-commerce solutions offering, including our picking solution, Pick & Collect, as well as our Click & Collect locker solutions. As deliveries of our lockers from China commences, we expect the roll-out of such locker modules to increase in the months and years to come. The next months will be challenging, but with our strong market position, the order intake in the last few weeks, and the increased interest in our e-commerce solutions provides room for optimism and we reiterate our long-term ambitions,” Tveraabak concludes.
EBITDA and other alternative performance measures (APMs) are defined and reconciled to the IFRS financial statements on page 21 in the attached quarterly report.
For additional information please contact:
CEO, StrongPoint ASA
Phone +47 90 82 13 70
Hilde Horn Gilen
CFO, StrongPoint ASA
Phone +47 920 60 158