OXE Marine AB (publ) Interim report 1 April to 30 June 2022
OXE Marine AB (publ)
Interim Report
Second Quarter 2022
Results presented in the interim report are consolidated from 16 February 2022 to 30 June 2022 following the completion of the acquisition of Diesel Outboards and Outdoor Network Manufacturing on 16 February 2022. Consolidated results include legal entities; OXE Marine AB (Sweden), OXE Marine INC (US) and OXE Marine Manufacturing INC (US). Furthermore, consolidated results do not have comparative figures as it is the first year of preparing consolidated financials. Where illustrated in the text, graphs and tables, prior year figures relate to OXE Marine AB only.
- Consolidated Net turnover amounted to SEK 45.7 m.
- Consolidated Gross Profit amounted to SEK 9.7 m with a gross margin of 21%.
- Consolidated EBITDA amounted to SEK -11.5 m.
- Consolidated EBIT amounted to SEK -18.1 m.
- The consolidated result for the quarter amounted to SEK -20.6 m.
- Consolidated EPS and DEPS amounted to SEK -0.08.
January - June 2022
- Consolidated Net turnover amounted to SEK 77.1 m.
- Consolidated Gross Profit amounted to SEK 18.7 m with a gross margin of 24%.
- Consolidated EBITDA amounted to SEK -26.4 m.
- Consolidated EBIT amounted to SEK -39.2 m.
- The consolidated result for the period amounted to SEK -44.1 m.
- Consolidated EPS and DEPS amounted to SEK -0.18.
Significant events during the Second quarter
- There were no significant events during the reporting period.
Significant events after the reporting period
- There were no significant events after the reporting period.
A word from the CEO
“Delivering our best quarter ever is solid performance, with a growth of 110% and steady P&A development we continue to show progress. Doing this at the same time as when the world is somewhat upside down with supply chains that are not in balance, war in Ukraine and all post-covid effects going on – that is a clear sign of the grit in the OXE Marine team. And yet, we are only at the beginning of our new journey”.
When working with transformation it is important to not confuse motion and progress. A rocking horse keeps moving but does not make any progress. Therefore, during the year we have taken a close look at what we do and how we do it, and results are gradually coming from this work shown by our consecutive growth and recurring customer base.
We have expanded our routes to the market globally from working with distributors to also include dealers, OEM, government and fleet customers and house accounts. Instead of assuming we have the depth of knowledge about our customers, we now work intensively to truly being their partner and contributing to making our customers successful. That require big ears, trustworthy actions, passion, and the ability to abandon assumptions and instead walk the extra mile as assumptions are the termites of relationships, instead we put ourselves in our customers shoes and learn from this.
What sets us apart as a company today is that we try to listen to everyone that owns and operates our product, regardless of where it is bought. This feedback loop gives us insights to further enhance our product, as well as being attentive to the customer needs to constantly improve our service levels. It has also paid off – during the last 6 months we have had more buying, and recurring, customers than the previous two years. When our customers trust us with a purchase today, we deliver a “fresh engine” with short lead-times to commission. From some 400 days previously in time to commission an engine (from being produced to hung on the back of a transom), to less than 100 days on average today world-wide. As a result of the investment in our supply chain network over the past two years, we can still deliver engines in a matter of weeks.
Playing in the arena of “transition technology” we already today probably deliver the world’s most environmentally friendly high-performance outboard engine. Looking towards the horizon, it is a very interesting arena to work in, where we actively participate in discussions on the evolution of marine industry.
Our overall sales performance during the quarter was very promising and consolidated sales amounted to SEK 46 m, an increase of 110% relative to Q2 2021, and an increase of 46% relative to Q1 2022. With this comes very low accounts receivable with the volume growth, a sign of the collaboration we are developing with our customers. Meanwhile, our costs continue to be in control, we will continue to run a “tight ship” but also always be on the look-out for extraordinary talents that want to become our colleagues and join us on the journey forward.
The gross margin was, as expected, lower during the quarter. This was in part due to the US stock acquired during the Transaction in Q1. The acquired stock has a higher book value therefore generating a lower gross margin when sold. This effect will taper off when the remainder of the stock is sold during Q3. Gross margin was also affected by a discount campaign during the quarter. As we wrote in the press release dated 22 December 2021, we still expect a positive impact of approximately 10% on our integrated margin for business generated in the US market. This positive impact will take effect during 2022 and increase in effect as the acquired stock is reduced.
Consolidated Parts & Accessories sales (“P&A”) amounted to SEK 7 m, a 212% increase relative to Q2 2021 and 33% increase relative to Q1 2022. In general, we continue to see the trend of growth in our P&A business due to the increase in the global number of OXE motors in operation.
Finally, the merger of what is now OXE Marine INC and OXE Marine Manufacturing INC with OXE Marine is truly a match made in heaven and will likely go down in history as one of the happiest marriages ever.
Anders Berg, CEO
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 22-07-2022 07:00 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:
Anders Berg, CEO, anders.berg@oxemarine.com, +46 70 358 91 55
Jonas Wikström, Chair of the board, jonas.wikstrom@oxemarine.com, +46 70 753 65 66
OXE Marine AB (publ) (NASDAQ STO: OXE) has, after several years of development, constructed the OXE Diesel, the world's first diesel outboard engine in the high-power segment. The Company’s unique patented engine-to-propulsion power transmission solutions have led to high demand for the Company’s engines worldwide.
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