Interim Report Q3 2019
STRAX delivers 17% sales growth in Q3 2019 and 18% growth YTD on a like-for-like basis, with significant improvement in profitability.
- The Group’s sales for the period January 1 – September 30, 2019, amounted to MEUR 72.3 (69.5), corresponding to an increase of 4 percent, with a gross margin of 24.1 (28.6) percent.
- The Group’s result for the period January 1 – September 30, 2019, amounted to MEUR -2.5 (-1.1) corresponding to EUR -0.02 (-0.01) per share. The result for the period was negatively affected by MEUR 3.3 related to the decline in value of the Zagg shares.
- Equity as of September 30, 2019 amounted to EUR 18.8 (19.8) corresponding to EUR 0.16 (0.17) per share.
- EBITDA for the period January 1 – September 30, 2019, increased to MEUR 5.1 (3.6).
- Year over year reduction in operational expenses excluding depreciation amounts to MEUR 6.7 for 2019 as a result of cost reductions implemented in 2018, corresponding to approximately 27 percent, and tracking towards MEUR 8-9 reduction in 2019.
- Urbanista accelerated its growth in the first 9 months of 2019 and achieved 20 percent market share in the true wireless headset category in Sweden in July 2019. In the fall of 2019 Urbanista launched four new true wireless products and is on track to deliver another record year.
- The board of directors resolved to split the group’s business into two parts – Own brands and Distribution. Both businesses will remain wholly owned by STRAX. This change will present an improved view of the value of each part the group’s business and is also expected to deliver a more effective cost structure once fully implemented. The change will come into effect on January 1, 2020. (See separate press release).
”Our third quarter performance was excellent overall and I am proud of the entire STRAX team for their determination and firm belief in the changes we have implemented during the last twelve months. In the third quarter our sales grew by 17% compared to the same period last year and 4% during the first nine months this year, whilst delivering 18% growth on a like-forlike basis, taking the Gear4 transaction into account”.
Gudmundur Palmason, CEO