OXE Marine AB (publ) Interim report 1 April to 30 June 2021

OXE Marine AB (publ) (NASDAQ STO: OXE) (OTCQX: CMMCF)

Interim report

Second quarter (April - June 2021)

  • Net turnover of SEK 21.8m (SEK 21.3m)
  • Gross Profit of SEK 5.9m (SEK 1.2m) or gross margin of 27% (6%)
  • Operating Loss/EBIT of SEK -12.8m (SEK -12.2m)
  • Result for the period of SEK -15.1m (SEK -14.3m)
  • Order book amounted to EUR 12.2 m or SEK 124 m at the end of the quarter.

  First half of 2021 (January - June 2021)

  • Year to date net turnover of SEK 31.8m (SEK 31.6m)
  • Gross Profit of SEK 8.6m (SEK 3.6m) or gross margin of 27% (11%)
  • Operating Loss/EBIT of SEK -34.2m (SEK -29.8m)
  • Result for the period of SEK -38.9m (SEK -33.8m).
  • Order book amounted to EUR 12.2 m or SEK 124 m at the end of the first half of 2021.

Significant events during the Second quarter

  • No significant events occurred during the quarter.

Significant events after the reporting period

  • Magnus Grönborg started as CEO of OXE Marine AB (publ) on 1 July 2021.
  • OXE Marine AB (publ) announced outcome of incentive program 2021/2025 and additional transfer of warrants of series 2019:2.

Comments by the CEO

During the quarter, the company achieved net turnover of SEK 21.8m (SEK 21.3m). We reached our highest quarterly gross profit of SEK 5.9m (SEK 1.2m) with a margin of 27% (6%), driven by higher sales of the OXE300 and a more favourable product mix. The company’s order book stood at a healthy SEK 124m at the end of the quarter

Improvements were made during the quarter in reducing our accounts receivable balance to SEK 15.2m - down from SEK 35.5m at the beginning of this year, and we continue to have a strong focus on optimising working capital.

During the quarter, much progress has been made with our assembly partner in Poland in respect to the OXE300 as well as in the US with regards to the OXE125-200 series. We continue to work closely with our assembly partners focussing on productivity improvements in assembly processes and developing quality control standards. We also continue to work closely with key suppliers in respect to improving lead times of parts delivery and quality standards. During the quarter we have experienced disruption and shortages of certain material and electrical components in the supply chain, however, we believe this should be alleviated by the next quarter as the situation will gradually improve, and despite these challenges we see good progress in the ramp-up.

We continue to see more positive activity from our distribution network through improved marketing initiatives as well as demo programs with key commercial and governmental customers and we clearly see a growing interest and demand in general in the market.

Our marketing activities during the quarter continue to gain pace following the successful launch of our new website in Q1 – significant improvements have been achieved in usability and development of strong content. We continue to increase our engagement with the public via social media and other media channels.

Furthermore, we are continuing with our preliminary assessment of BMW’s 4-cylinder two litre turbo diesel engine for marine application as well as other development work including electric outboard solutions.

In summary, the quarter show results from our efforts and we are encouraged by the positive development in accounts receivables and gross margins as well as a the good trend in ramp-up of production with significant focus on delivering products with high-quality standards in a controlled manner.

The Board and Management remain confident of the future prospects and look forward to growing the business in a sustainable and profitable manner.

We are driven by the ambition to transform the outboard motor; impacting the journey towards a more sustainable and ecologically positive marine environment.

We are engineering the future. Our future.

Myron Mahendra

Chief Executive Officer, OXE Marine AB

This disclosure contains information that OXE Marine AB is obliged to make public pursuant to the EU Market Abuse Regulation (EU nr 596/2014). The information was submitted for publication, through the agency of the contact person, on 23-07-2021 11:00 CET.

Certified Adviser
FNCA Sweden AB is Certified Adviser for OXE Marine AB (publ). Contact details to FNCA Sweden AB: tel. +46 8 528 00 399, e-mail info@fnca.se.

For further information, please contact:
Magnus Grönborg, CEO, magnus.gronborg@oxemarine.com, +46 76 724 73 00
Myron Mahendra, EVP, myron.mahendra@oxemarine.com, +46 763 47 59 82
Anders Berg, Chairman, anders.berg@oxemarine.com, +46 70 358 91 55 

OXE Marine AB (publ) (NASDAQ STO: OXE), (OTCQX: CMMCF) has, after several years of development, constructed the OXE Diesel, the world ́s first diesel outboard engine in the high-power segment. OXE Diesel has a unique belt driven propulsion system that allows a hydraulic multi-friction gearbox to be mounted. This means that the engine can handle significantly higher loads than a traditional outboard engine. OXE ́s OXE diesel has a horizontally mounted engine as opposed to a traditional outboard with a vertically mounted engine.

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We continue to see more positive activity from our distribution network through improved marketing initiatives as well as demo programs with key commercial and governmental customers and we clearly see a growing interest and demand in general in the market.
Myron Mahendra, CEO, OXE Marine AB