News Tag: Report

• The Group’s sales for the period January 1 – December 31, 2022, amounted to MEUR 104.4 (101.8)
  with a gross margin of 16.7 (16.4) percent.
• The Group’s result for the period January 1 – December 31, 2022, amounted to MEUR -19.6 (-3.9) corresponding to EUR -0.16 (-0.03) per share.
• EBITDA from remaining operations for the period January 1 – December 31, 2022, amounted to
  MEUR -0.9 (5.4).

• Equity as of December 31, 2022, amounted to MEUR -6,480 (14,036) corresponding to EUR -6.5 (14.0)
  per share.

• External factors continued to have negative impact on sales of own mobile accessories and personal audio products, whilst sales of lower margin health products remained relatively stable. Additional margin impact came from MEUR 4 inventory markdown. Our average blended gross margin does therefore remain compressed relative to those we achieved prior to the Covid-19 pandemic.

• Following a decision by the board of directors in September 2022 to have a more focused strategy
  and simplified group operating structure, the following brands and businesses are reported as discontinued
  operations: own brands Dóttir and grell, licensing business under Telecom Lifestyle Fashion, and
  the Health and Wellness business.

• Plan to divest assets and refinance distribution business to increase liquidity and reduce debt in the Group initiated.

  Significant events after the end of the period

  STRAX subsidiary Urbanista, received two awards at CES 2023 in Las Vegas, the most influential tech event in the world. Urbanista Phoenix – the world’s first true wireless, noise cancelling earphones powered by light – was awarded best of CES by technology magazines TWICE and MakeUseOf (MUO).

“As a result of continuing challenging industry environment our figures took a heavy beating in 2022.
However, we maintained investing in our four remaining own brands and our North America sales platform, providing for a significantly brighter times ahead for a streamlined and more focused organization.
We furthermore implemented various cost reduction actions across continuing operations throughout the year and we expect benefits thereof to fully materialize in 2023.”

Gudmundur Palmason, CEO

The Group’s sales for the period January 1 – September 30, 2022, amounted to MEUR 83.2 (65.1) with
a gross margin of 20.6 (19.0) percent.

The Group’s result for the period January 1 – September 30, 2022, amounted to MEUR -6.4 (-1.3) corresponding
to EUR -0.05 (-0.01) per share.

EBITDA from remaining operations for the period January 1 – September 30, 2022, amounted to
MEUR 4.9 (4.0).
 
Equity as of September 30, 2022, amounted to MEUR 4.7 (17.1) corresponding to EUR 0.04 (0.14) per share.
 
Following a decision by the board of directors in September 2022 to have a more focused strategy
and simplified group operating structure, these brands and businesses are reported as discontinued
operations: own brands Dóttir and grell, licensing business under Telecom Lifestyle Fashion, and
the Health and Wellness business.
 
External factors continued to have negative impact on sales of own mobile accessories and personal audio products, whilst sales of lower margin health products remained relatively stable. Our average blended gross margin does therefore remain compressed relative to those we achieved prior to the Covid-19 pandemic.

“The new streamlined STRAX is well positioned for profitable growth and all the remaining own brands have a sound potential for continued expansion, particularly in North America. By focusing on the European distribution business and fewer brands we will be able to enhance efficiency, growth, and profitability as we are freeing up both resources and management attention. Some of the businesses that will be divested also have viable commercial potential, but we believe those will benefit more under a different ownership. We don’t expect the divestments to generate any losses.”

Gudmundur Palmason, CEO

This information is information that STRAX AB is obliged to make public pursuant to the EU Market Abuse Regulation.
The information was submitted for publication, through the agency of the contact person set out above, at 08:55 CET on November 24, 2022.

The Group’s sales for the period January 1 – March 31, 2022, amounted to MEUR 39.9 (28.1) with
a gross margin of 17.7 (18.5) percent.

The Group’s result for the period January 1 – March 31, 2022, amounted to MEUR -0.7 (-1.4) corresponding to EUR -0.01 (-0.01) per share.

EBITDA for the period January 1 – March 31, 2022, amounted to MEUR 1.5 (0.3).
 
Equity as of March 31, 2022, amounted to MEUR 13.3 (17.8) corresponding to EUR 0.11 (0.15) per share.
 
Covid-19 continued to have negative impact on sales of own mobile accessories and personal audio products, whilst increasing sales of lower margin health products. This unfavourable brand and product mix coupled with various global supply chain disruptions has caused a drop in gross margin for 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.

STRAX extended its partnership with the German personal protective equipment specialist company to deliver Covid-19 tests to another regional government body in Germany. The total value of the contract has increased and will be covering a 24-month period, where total volumes are expected to be higher but initially lower volumes in Q2.

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.

Significant events after the end of the period

CLCKR, the mobile phone accessory brand, wholly owned by STRAX announced that their range of mobile stand and grip accessories are now available in over 10,000 stores in the US.

 
“The first quarter of 2022 was relatively strong overall, albeit not without significant external challenges such as the ongoing Covid-19 pandemic and the military conflict in Ukraine. The current macro-economic climate will prolong full market recovery and increase uncertainty as to what a “new normal” will look like, although we are more certain than ever that it will be materially different.”

Gudmundur Palmason, CEO

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