Robust financial results for the second quarter of 2020
July 14, 2020
StrongPoint ASA reported revenues of NOK 287.9 million in the second quarter of 2020, up from NOK 287.1 million in the same quarter in 2019. The EBITDA improved to NOK 25.6 million (22.1). StrongPoint’s Retail Technology business area continued a strong performance in the quarter despite volume effects, primarily in Spain and the Baltics, from the COVID-19-situation.
“This second quarter and most of this first half of 2020 has obviously been turbulent. Whilst our primary objective has been safeguarding employees, customers and business partners, we have in parallel done our upmost to deliver our business critical products and services to our customers. Focusing on serving the resilient grocery retail market, we have both mobilized our work force and served our customers in ways I am proud of. We are stronger positioned than ever to deliver true value to our customers and achieving our 2025 strategic ambitions”, says Jacob Tveraabak, Chief Executive Officer of StrongPoint.
StrongPoint reported revenues of NOK 287.9 million (287.1) in the second quarter of 2020 and an EBITDA of 25.6 million (22.1). Retail Technology delivered a growth of two per cent compared to same quarter last year, Labels delivered a growth of 21 per cent, and the volatile Cash Security business were highly influenced by the COVID-19 measures and declined by 43 per cent. Reported operating profit was NOK 13.4 million, up from NOK 8.3 million in the corresponding quarter in 2019, while the cash flow from operating activities ended at NOK -11.0 million (46.5). The company had disposable funds of NOK 97.5 million at the end of the quarter to cover short-term changes in working capital.
“In this choppy quarter, we have had some parts of the business coming to an almost complete stand-still at times, like our Retail Technology operations in Spain and Cash Security. At the same time, we have experienced a very high demand for our e-commerce logistics solutions, growing more than 70 % vs. same quarter last year, and constituting 10 % of total revenue this quarter, up from 5 % in the full year 2019. Also, our adhesive labels business grew by more than 20 % growth vs. same quarter last year. The demand for our in-store solutions and services has mostly been maintained. In total we have managed to uphold our top line and improve our profitability this quarter. Our operating cash flow is reduced compared to same quarter last year, however our balance sheet and finances have remained solid throughout the entire period.,” 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 pandemic has marked a shift in shopping behavior, with e-commerce and precautionary in-store solutions booming, both now during the pandemic, but also likely creating lasting customer behavior changes. StrongPoint is very well positioned with its world-class solutions for the grocery retail sector in general. Combined with a very strong customer base, relationships and partners in defined key countries, we have the right starting point for further deepening our service with these customers. With this backdrop I truly believe we have all the reasons to be optimistic about the future as StrongPointers,” Tveraabak concludes.
For additional information please contact:
CEO, StrongPoint ASA
Phone +47 90 82 13 70
Hilde Horn Gilen
CFO, StrongPoint ASA
Phone +47 92 06 01 58