Higher deliveries to China drive increase in sales during the third quarter
PowerCell increased its sales during the third quarter this year with 36 percent, up from 11 MSEK to 15 MSEK, compared to the same period last year. Operating income amounted to MSEK -16.6 compared to MSEK -10.8 the same period last year.
“China drives the increase in sales whereas the decrease in operating income is mainly attributable to increased costs for sales and administration in accordance with plan, and to higher costs for research and development, mainly driven by the joint development project on S3 with Bosch,” Per Wassén, President of PowerCell said.
The English version is an in house-translation. In case of any discrepancy, the Swedish text will prevail.
Total sales for the third quarter 2019 amounted to 15,089 Thousand SEK compared to 11,091 Thousand SEK the same quarter previous year, up 36 percent. Operating income amounted to -16,645 (-10,822) Thousand SEK. The decrease in operating income is the effect of higher costs for sales and administration and to higher costs for research and development, mainly driven by the joint development project on S3 with Bosch. Operating income was also affected negatively by a lower gross margin as a consequence of a technically more complex fuel cell system order which required more customer adaptations.
“Both the increased costs for sales and administration and the lower gross margin is the result of deliberate decisions”, Per Wassén, President of PowerCell said. “To continue to grow sales we allocate more resources to sales, not the least in China, where we after period-end announced that we have obtained all required permissions for the establishment of our local subsidiary. The technically more complex system order had a negative impact on our gross margin but was strategically important as it allowed us to further develop our technology, which will be beneficial to us in other segments.”
Financial highlights
| All amounts in TSEK | 2019 Jul-Sep |
2018 Jul-Sep |
2019 Jan-Sep |
2018 Jan-Sep |
| Net sales | 15,089 | 11,091 | 39,867 | 32,411 |
| Operating income before items affecting comparability | -16,645 | -10,822 | -51,162 | -49,746 |
| Operating income | -16,745 | -10,822 | 477,171 | -49,746 |
| Income after tax | -9,717, | -11,107 | 478,988 | -50,412 |
| Operating cash flow | -24,316 | -34,635 | 390,593 | -69,818 |
For further information, please contact:
Per Wassén
CEO, PowerCell Sweden AB (publ)
Phone: +46 (0) 31 720 36 20
Email: per.wassen@powercell.se
This information is insider information that PowerCell Sweden AB (Publ) 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 07:30 CET on October 31, 2019.
About PowerCell Sweden AB (publ)
PowerCell Sweden AB (publ) develops and produces fuel cell stacks and systems for stationary and mobile applications with a world class energy density. The fuel cells are powered by hydrogen, pure or reformed, and produce electricity and heat with no emissions other than water. As the stacks and systems are compact, modular and scalable, they are easily adjusted to any customer need.
PowerCell was founded in 2008 as an industrial spinout from the Volvo Group. The share (PCELL) is since 2014 subject to trade at Nasdaq First North Growth Market, Stockholm. G&W Fondkommission is Certified Adviser, e-mail: ca@gwkapital.se, phone: +46 8 503 000 50.