STRAX delivered record annual sales of 123.7 MEUR in 2021, during the same time gross margin was negatively impacted due to Covid-19
The Group’s sales for the period January 1 – December 31, 2021, amounted to MEUR 124 (112) with
a gross margin of 15.1 (26.3) percent.
The Group’s result for the period January 1 – December 31, 2021, amounted to MEUR -3.9 (0.7) corresponding to
EUR -0.03 (0.01) per share.
EBITDA for the period January 1 – December 31, 2021, amounted to MEUR 4.3 (8.5).
Equity as of December 31, 2021, amounted to MEUR 14.0 (18.2) corresponding to EUR 0.12 (0.15) per share.
Covid-19 continued to have significant impact on sales of own mobile accessories and personal audio brands leading to unfavorable brand and product mix. This development coupled with various global supply chain disruptions has caused a sharp drop in gross margin for the period.
A bid for all outstanding shares in ZAGG shares was approved February 18, 2021. The bid level was at the current share price so will not have an effect for the P&L but will contribute with approximately 2.5 MEUR in cash, with a potential upside of USD 0.25 per share if certain conditions are met corresponding to an additional USD 159.4 thousands.
STRAX subsidiary Urbanista, the Swedish lifestyle audio brand, announced Urbanista Los Angeles, the world’s first self-charging, wireless active noise cancelling headphones, powered by Powerfoyle™ solar cell material.
STRAX launched online only brand Dóttir, with new line of sports-focused true wireless headphones.
The brand was developed with CrossFit champions Annie Thorisdottir and Katrin Davidsdottir.
The first product, Dóttir Freedom On-Grid in-ear headphones has already been awarded the Red Dot Award
for product design.
STRAX launched online only brand, grell, with the first product being true wireless headphones. The brand was developed with world-renowned sound engineer and headphone designer Axel Grell, who has crafted headphones to produce world-class sound for over three decades, most notably at Sennheiser. The first product from grell won CES Innovation awards 2022.
As a result of the compressed margin during the second half of 2021, the group did not meet one of the financial covenants in the loan agreement with PCP as of December 31, 2021. After the end of the period a waiver for the breach was granted. The fact the waiver was granted after the end of the period has the effect under IFRS that the related interest-bearing debt is reported as current in the balance sheet as of December 31, 2021.
STRAX demonstrated its commitment to furthering sustainability by earning gold certification from Ecovadis,
the largest independent provider of business sustainability ratings.
Significant events after the end of the period
STRAX entered a partnership with a German personal protective equipment specialist company to deliver Covid-19 tests to a regional government body in Germany. Total sales of the tests are expected to exceed MEUR 32 in the first quarter of 2022 with a significant positive impact on STRAX during the quarter.
STRAX extended its partnership with the German personal protective equipment specialist company to deliver Covid-19 tests to another regional government body in Germany. Total sales of the new contract award are expected to exceed MEUR 12, and the contract covers the first and second quarter of 2022.
AirPop, the premium high performance face mask brand STRAX holds a five-year global exclusive distribution agreement for, recently secured key retail channels in the United States, Canada, and Australia.
“STRAX delivered 123.7 MEUR in sales in 2021, corresponding to 10.7% growth year-over-year (YoY) and record annual sales. The ongoing Covid-19 pandemic has caused challenging industry dynamics for our own personal audio and mobile accessories brands, which negatively impacted our blended average contribution profit margin during the period. We experienced product delays and increased input costs on the supply side and global smartphone shortage and drop in retail store footfall on the demand side.”
Gudmundur Palmason, CEO