STRAX sales holding up, at the same time margin has come under pressure as a consequence of Covid-19 impact on the industry
- The Group’s sales for the period January 1 – September 30, 2021, amounted to MEUR 81.8 (76.7) with a gross margin of 16.2 (25.5) percent.
- The Group’s result for the period January 1 – September 30, 2021, amounted to MEUR -1.3
(-0.9) corresponding to EUR -0.01 (-0.01) per share. - EBITDA for the period January 1 – September 30, 2021, amounted to MEUR 2.7 (4.9).
- Equity as of September 30, 2021, amounted to MEUR 17.2 (17.5) corresponding to EUR 0.14 (0.14) per share.
- 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. Using advanced green technology, Los Angeles converts all forms of light, outdoor and indoor, into energy to deliver virtually infinite playtime.
- 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.
Significant events after the end of the period
- 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.
- As a result of the compress margin during Q3, 2021, the group did not meet one of the financial covenants in the loan agreement with PCP as of September 30, 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 September 30, 2021.
“Our sales have held up well and grown by 6.7% year-over-year (YoY). However, we continue to be affected by the Covid-19 pandemic and consequential industry dynamics on both the supply and demand sides, negatively impacting our contribution profit margin. On a more positive note, we have not experienced margin erosion on product level, and we expect that these challenging macro factors will start to normalize in 2022.”
Gudmundur Palmason, CEO