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Interim report third quarter 2023

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Third Quarter (July–Sep 2023)

  • Net sales amounted to TSEK 119,895 (97,580), which is an increase of 22.9 % compared to the same period last year.
  • The gross margin amounted to 52.8 % (58.9).
  • Operating profit before depreciation (EBITDA) amounted to TSEK 20,821 (24,585), which corresponds to an operating margin before depreciation of 17.4 % (25.2).
  • Operating profit (EBIT) amounted to TSEK 6,149 (14,592), which corresponds to an operating margin of 5.1 % (15.0).
  • Earnings per share before dilution amounted to SEK 0.39 (1.07).

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

Jan-Sep

  • Net sales amounted to TSEK 351,519 (303,278), which is an increase of 15.9 % compared to the same period last year.
  • The gross margin amounted to 55.5 % (58.8).
  • Operating profit before depreciation (EBITDA) amounted to TSEK 70,512 (83,047), which corresponds to an operating margin before depreciation of 20.1 % (27.4).
  • Operating profit (EBIT) amounted to TSEK 30,195 (55,037), which corresponds to an operating margin of 8.6 % (18.1).
  • Earnings per share before dilution amounted to SEK 2.07 (4.03)

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

Comments from the CEO

A quarter with several highlights

The quarter shows organic revenue growth of 23 % compared to the same period last year. Despite a continued challenging global situation, the sales of the new luminaires contributed to continued good growth. The recovery in installations we saw towards the end of the second quarter continues in the third quarter, and we land on an increase of 17 % compared to the same quarter last year.

Sales have started better than expected for our new product categories, and we still have orders for more than we could deliver in the third quarter. We are very satisfied with the initial reaction, but as larger volumes only reached our customers at the end of the third quarter, it will be interesting to see how the installations develop in the coming quarter.

Profitability is lower than the same quarter last year. This is due to both an initially lower gross margin for the luminaries and a rise in other expenses. It’s typical for new product categories to have a marginally lower gross margin relative to more mature products, like our “puck series.” As always, we’ll continue our efforts to improve margins on the new categories through optimized product design and production over time, and we’ll also continually enhance margins on our existing products. Overall, however, we anticipate a somewhat reduced gross margin for the time being.

We can now grow without needing to increase expenses significantly, and they are therefore expected to flatten out. We’re already seeing an improvement in other external expenses

compared to earlier quarters this year. The combination of stable costs and growth from new product categories and markets is projected to improve profitability.

We have a good overview and control of our inventory going forward with the expectation of starting to lower our inventory levels and thereby freeing up capital in 2024. Liquidity remains strained and is temporarily financed with an overdraft facility. Based on the current installation rate and market situation, we see that the financing with the overdraft should be enough before we are again financed with equity capital.

In conclusion, I would like to thank the team for a good job in the third quarter and now look forward to a new wave of strong growth, driven by our new luminaire series and our strong growing international markets.

Babak Esfahani
CEO

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.

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