235% higher operating profit during strong growth (interim report quarter three 2021)

Third Quarter (July–Sep 2021)    

• Net sales amounted to TSEK 75,938 (47,411), which is an increase by 60,2% compared to the same period last year.
• The gross margin amounted to 60.2% (58.1).
• Operating profit before depreciation and amortization (EBITDA) amounted to TSEK 20,082 (7,979), which corresponds to an operating margin before depreciation and amortization of 26.4% (16.8).
• Operating profit (EBIT) amounted to TSEK 12,736 (3,795), which corresponds to an operating margin of 16.8% (8.0).
• Earnings per share before dilution amounted to SEK 0.92 (0.35)

(Comparative figures in parentheses refer to the corresponding period in the previous year.

Jan–Sep 2021

• Net sales amounted to TSEK 230,027 (135,726), which is an increase by 69.5% compared to the same period last year.
• The gross margin amounted to 56.7% (55.7).
• Operating profit before depreciation and amortization (EBITDA) amounted to TSEK 54,460 (25,636), which corresponds to an operating margin before depreciation and amortization of 23.7% (18.9).
• Operating profit (EBIT) amounted to TSEK 33,992 (14,127), which corresponds to an operating margin of 14.8% (10.4).
• Earnings per share before dilution amounted to SEK 2.47 (1.36).

(Comparative figures in parentheses refer to the corresponding period in the previous year.)

Comments from the CEO

Strong organic growth with increased profitability

The organic growth increases by 60% and EBIT increases by 235% compared to the same period last year. Gross margin reaches 60% for the first time and set the tone for the third quarter. The heightened gross margin is mainly driven by improved product design and production processes.

The gross margin can continue to vary quarter to quarter due to product mix, new markets, and the current global component situation. However, we do see how our continued optimizations to products and processes yields a solid underlying profitability.

The global component shortage affects us, as it does most companies, however, our ability to deliver has not been affected. This is the result of good stock levels and our agility to redesign our products to work with a wider selection of components. Our vertically integrated company, with everything in-house from plastics and electronics, to app and cloud has made it possible for us to act swiftly with product redesigns to handle the component situation.

In Norway, we see strong growth in installations, with levels approaching 25% of Sweden. As Norway has opened up again after the pandemic, our sales force can interact freely with our customers again. The growth in Norway is very reminiscent of what we saw in Sweden and has the potential to have a similar trajectory. Other international markets are still in the early stages, and we hope to see similar growth for them in the future.

Our next product launch will be SPR-01 (Smart plug), which is currently in the last stages of development with ongoing beta testing. The product launch is expected to be in the fourth quarter of 2021.

The team delivers a strong quarter on our path towards high organic growth with steadily increasing profitability.

Babak Esfahani

CEO of Plejd AB (publ) 

For further information

Phone: +46 (0) 10 207 89 01

E-mail: investor@plejd.com

About the company

Plejd is a leading Nordic supplier of smart lighting controls. By focusing on the user experience, smart lighting controls are made easy and available to everyone.